When buying a home in The Netherlands, the real estate market involves grasping these Dutch terms. A clear understanding of these words will empower you to make well-informed decisions. At our company, we aim to provide you with the best information possible and to be transparent every step of the way. That’s why we’ve created this Guide to Real Estate ABC—to help demystify the process and ensure you have the knowledge you need to make confident choices.
We’ve also produced numerous videos on home buying and interesting blogs.
Here’s Your A-Z Guide:
- Afsluitprovisie (Closing Commission) When buying a home this means the closing commission. This fee, tied to mortgage closure, should be factored into your overall budget.
- Akte van Levering (Deed of Transfer) A vital document in Dutch real estate, transferring ownership from seller to buyer.
- Akte van Splitsing (Deed of Division) In apartment living, “akte van splitsing” details property division, defining ownership and shared responsibilities within a building.
- Anti-speculatiebeding (Anti-Speculation Clause) An important clause in property contracts that restricts the buyer from selling or transferring ownership for a specific period, discouraging speculative practices.
- Appartementsrecht (Apartment Right) It signifies the right of ownership and use of a specific part of a building, maintaining the unit’s integrity without the authority to divide it
- Bankgarantie (Bank Guarantee) This serves as security, assuring the seller that the buyer has the financial means. The bank guarantees the seller up to a certain amount, deposited in a third-party account at the notary’s office.
- Beschermd Stadsgezicht (Protected City View) This term refers to a designated area or landscape within a city that is legally protected from development or alteration to preserve its visual appeal or cultural significance.
- Blokverwarming (Block Heating) It’s a central heating system serving multiple units in the same block.
- Bodemrapport (Soil Report) A document detailing soil composition and suitability for construction.
- Bouwkeuring (Building Inspection) This assesses the property’s structural integrity, revealing potential issues that influence the property’s value.
- Courtage (Commission) The commission paid to real estate agents. Understanding this term ensures transparency in your agreement, clarifying the financial aspects of their assistance.
- Eigendomsoverdracht (Transfer of Ownership) This is when legal delivery or transport of property occurs on a pre-agreed date.
- Energie Label (Energy Label) An energy label is a certification indicating the energy efficiency of a building or appliance.
- Executiewaarde (Foreclosure Value) In case of financial struggles, foreclosure may lead to a forced public sale of property by the bank at a value often lower than the market price.
- Hypotheek (Mortgage) This grants a lender rights to a borrower’s property, often referred to as the loan itself.
- Hypotheekakte (Mortgage Deed) A notary-drafted document that pledges the property as collateral to the lender, outlining rights and obligations.
- Informatieplicht (Disclosure) Property owners are legally obliged to reveal information, such as structural conditions, that could influence a sale.
- Kadaster (Land Registry Office) This is where ownership rights of land and property are publicly recorded.
- Koopovereenkomst (Sale and Purchase Agreement) A binding contract obligates a transaction between a buyer and seller.
- Koopsom (Purchase Price) The agreed-upon amount by the buyer and seller is stated in the purchase deed.
- Kosten Koper (Buyer’s Costs) As a buyer, you are obliged to pay costs such as transfer tax, cadastral rights, and notary fees.
- Lijst van Zaken (List of Moveables) It’s an inventory of portable items like furniture and appliances that can be easily moved from one place to another.
- Maisonette A house with living and sleeping areas on separate floors.
- Makelaar (Real Estate Agent) Mediates property transactions exclusively for clients, serving their interests. An agent is a negotiator, not a trader. Since 2001 anyone can call themselves a real estate agent.
- Meetrapport (Measurements Report) A document detailing the dimensions and specifications of a property or structure.
- Nota van Afrekening (Settlement Statement) A bill of settlement, drawn up by a notary. It details transaction costs like transfer tax and brokerage fees, costs for registration, closing costs of any mortgage loan and the estate agent fee.
- Notaris (Notary) The notary is a public official appointed by the King and will take care of the transfer of ownership of a house and mortgage. He or she is responsible for registering the deed of transfer at the Land Registry and registering the mortgage in the mortgage register.
- Ontbindende Voorwaarden Agreement becomes void if certain conditions aren’t met.
- Overbruggingskrediet (Bridge Loan) Uses equity from an old home to bridge the gap between buying a new one.
- Passeren (Passing) Formal signing of property documents at the notary’s office.
- Service Kosten (Building Fees) Covers common expenses in apartment buildings, like insurance and maintenance.
- Souterrain A cellar partly above street level.
- Taxatie (Valuation) Assesses property value by a (sworn) appraiser.
- Transport Akte (Deed of Transfer) Records property ownership change, registered with the land registry.
- Vereniging van Eigenaren (Owners’ Association) Represents homeowners’ interests in shared buildings.
- Vrij op Naam (VON) Legally required costs are included in the purchase price, excluding mortgage costs.
- WOZ (Wet Waardeering Onroerende Zaken) This law brought uniformity in the valuation of immovable properties and is the value of the house if it were to be sold empty to the highest bidder or the free market value
- Wet ter voorkoming van Witwassen en Financieren van Terrorisme (WWFT) The WWFT, or “Law for the Prevention of Money Laundering and Financing of Terrorism,” mandates that parties like Real Estate Agents, Financial Institutions, and Notaries verify client identities, conduct due diligence, report unusual transactions, and maintain records. This is to combat money laundering and terrorist financing by detecting and preventing illicit activities in the financial system. As part of this, they may ask for proof of identity and income from clients.
At Burgemeester Vastgoed, we’re on a mission to make everything as clear as possible. If you want to know more or add a term to the list, feel free to reach out via info@burgemeestervastgoed.nl or visit our website’s contact page.
Happy house hunting!