A Complete Guide to Real Estate ABC: Essential Dutch Terms
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!
High Demand for Homes in Amsterdam
I have more than 20 years of experience assisting expats in finding homes. Amsterdam's popularity as a place to live has surged, but the housing supply hasn't kept up with the demand. Unlike many cities where more people own homes, Amsterdam is different. Only about 30% of properties in the city are owner-occupied.
Now, in my professional opinion, I'll dissect the situation step by step to provide a clear understanding. The majority of properties in Amsterdam are used for social housing, offices, and other purposes, which significantly limits the number of available homes for purchase. This supply-demand mismatch makes it tough, but not impossible, for people to find suitable places to live.
A Natural Shortage explained
- Homes Are Getting More Expensive
Houses in Amsterdam are becoming fancier and pricier. This is good news if you can afford to buy a great home, but it's a problem for many others. We don't see an end to it – prices in the middle and upper segments, going over 500,000 euros, are expected to keep going up. Meanwhile, the lower-priced homes are in high demand, with an average of 11 people wanting to buy each one, which means prices are going up there too.
- Building New Homes Is Slow
In a lot of places, making new houses helps when there aren't enough. But in Amsterdam, it's not happening fast. Why? Well, there's not much space, strict rules about building, and it costs a lot to build, so it's tough to match the growing need.
- Tangled Up in Rules
Amsterdam's housing market is caught in a web of rules and regulations. Some are important for the environment and safety, but too many can tangle up construction and slow things down. This only adds to the challenge of finding a suitable home.
In a nutshell, Amsterdam's housing problem is complex. With only approximately 30% of homes owned and the rest used for social housing and other purposes, the city faces unique challenges. Finding solutions to make Amsterdam more accessible to everyone is essential. Keep in mind, that I don't have a crystal ball, and like all complex topics, government policies play a significant role. Hopefully, we'll see progress, but it might not be immediate.
Why a Certified Real Estate Agent Matters
Amsterdam's housing market is quite competitive. That's why having a certified and well-known real estate agent with you, like me, is super important. Homes for sale can come and go fast, and a pro can be a big help. Agents like me understand the market well. We can act quickly when new homes are listed and help you make smart choices.
In the Netherlands, real estate agents get paid by either the seller or the buyer, not both. So, selling agents prefer working with people who have professionals on their side because it makes deals more likely to succeed. Having a trusted agent can be the secret to finding your dream home in Amsterdam's challenging housing market.
If you'd like to chat or have any questions, feel free to reach out via info@burgemeestervastgoed.nl.
Property defects: understanding your rights
As an experienced and certified purchase estate agent in #amsterdam , I've helped many expats find their dream homes. In my opinion, buying a new home should be a joyful and stress free occasion. However, what if you encounter defects in your recently purchased property? Let's dive into it.
Under Dutch housing law, the purchase and sale of a residential home require a written agreement called the purchase- and sales agreement. This agreement covers essential aspects like price, conditions, finance clauses, and property information. It can be a standard NVM agreement, an so called Amsterdam's Model like we use in Amsterdam, or a custom agreement, as long as it complies with Dutch law.
The language used in the purchase and sales agreement is vital for protecting your rights. That's why it's crucial to have guidance from someone like me who understands the importance of clearly stating essential information.
When buying an existing home with previous occupants, the moment of ownership transfer is key to addressing any defects. As the owner, you take responsibility for the property. Older properties may have natural wear and tear that isn't anyone's fault. For example, you might encounter leakage or a sagging floor after a few months.
The purchase and sales contract often states that the previous owner can't be held responsible for such age-related issues. If you face significant issues that impede your use of the property, legal action may be an option, but it's important to understand your rights and obligations first.
Seller's obligation: Disclosure
The seller is legally obligated to disclose important information about the property, including its condition and the surrounding environment. Failure to disclose hidden defects or issues that impact the property's residential use may be a breach of contract. Examples include hidden asbestos or unsafe wiring. Sellers must provide this information to avoid accountability for resulting issues.
Buyer's obligation: Examination
Buyers are responsible for conducting a reasonable examination of the property. This determines what they could have reasonably known based on legal standards. If a defect is clearly visible or discoverable during examination, it becomes challenging to argue it as a breach of contract. The extent of investigation required depends on the property's age.
When can the contract be breached?
To determine if a defect qualifies as a breach of contract, consider three factors:
- what is specified in the purchase and sales agreement
- whether the defect is essential to the deal
- what is considered reasonable under Dutch Law
A defect must significantly impact your ability to use the property or have played a crucial role in your decision to purchase.
If you encounter problems after you became the owner, contact your purchase agent for assistance. If you bought the property without an agent, consult a real estate lawyer for guidance. It's a good idea to try negotiating to resolve property defect disputes.
Different rules apply when purchasing newly built houses!
Getting a professional structural inspection and report is often a wise investment if you need to hold the seller accountable later on for major defects. Sometimes this is not needed, if we have recent knowleadge and recent data on the property.
Are you in the process of searching for a home to buy?
To navigate this competitive market, it's advisable to work with a certified and experienced real estate agent like myself. I'll examine the agreement, inspect the property for visable defects myself, and address financing or architectural concerns if necessary. I understand that the information provided in this article may be overwhelming. Feel free to reach out to me for a chat. We can discuss the possibilities of working together and explore how I can assist you in your home buying journey.
Decoding the current avarage house prices in Amsterdam
Buying a home in Amsterdam? The actual average house price is currently € 571 568, but what does that say?
As a certified purchase agent with over 23 years of experience, I know that when it comes to property prices, it’s essential to understand that prices can vary significantly from street to street, but how is that?
In Amsterdam, each neighbourhood has its own unique charm, character, and amenities, which can influence property values. But even within the neighbourhood prices can differ significantly. Certain streets are more desirable and more expensive per m2 price than other streets, so the average and current price per m2 of € 7 189, is not standard for all homes.
When it comes to determining property prices, several crucial factors come into play. Factors such as size, condition, layout, and renovations all significantly impact the value of a property. Additionally, even within the confines of a single neighbourhood, you may find a diverse range of properties on the same street, each possessing unique characteristics that contribute to price variations.
Therefore, relying solely on average prices may not provide an accurate representation of the dynamic real estate market. Evaluating the market value of each property individually is of utmost importance.
How About the future prices?
Predicting home prices in Amsterdam is a complex task influenced by numerous factors. While I don’t possess a magic ball, my expertise and knowledge of the market and recent sales are the basis of my advice.
Currently, the housing market in Amsterdam is extremely tight, with significantly more demand than supply. This has resulted in a competitive market for buyers. The demand for homes in Amsterdam continues to rise steadily, driven particularly by the city’s popularity. In Amsterdam, we only have 33% home ownership, so that explains a lot.
Over the past couple of years, we have been fortunate to benefit from remarkably low mortgage rates. However, it is encouraging to witness these rates gradually stabilizing towards more typical levels. As a result, it’s important to acknowledge that borrowing capacities may be slightly reduced due to the rise in mortgage rates, so it is always wise to visit a bank or a mortgage advisor and get your numbers clear.
It is crucial to emphasize that the housing shortage in the market continues to persist, driving sustained demand for available properties. The reality is that finding a desirable home remains a challenging task, as there are multiple interested buyers for every property available.
What now?
So, if you are considering purchasing a home in Amsterdam, I provide a tailored approach that considers your unique requirements, preferences, and budget. We do not work with multiple clients who have the same criteria, as we believe in avoiding competition among our clients, we will keep you safe and we work on a no-cure/no-pay base.
Rest assured, if you maintain a realistic view and are open to following our advice, we are committed to finding you an exceptional home where you can create lasting memories.
Call me today for a personalized consultation, and let’s embark on this exciting journey together!
The Energylabel
The Netherlands has been at the forefront of adopting policies and initiatives to reduce energy consumption and promote the use of renewable energy sources. One of these initiatives is the energy label, which provides information about the energy efficiency of a building to potential buyers or renters.
WHAT IS IT?
An ‘energielabel’ (Energy Performance Certificate – EPC) shows the energy efficiency of a property. The EPC also notes potential energy-saving measures for a property.
The label takes into account factors such as insulation, heating and cooling systems, ventilation, and renewable energy sources. The label is valid for 10 years and can be obtained through a certified energy advisor.
WHY DO I NEED IT?
When buying a home in the Netherlands, it is important to consider the energy efficiency of the property. This is where an energy label comes in – a certification that rates a property’s energy performance on a scale from A to G. The label is mandatory for all homes being sold or rented out.
Also, it can help you make an informed decision about the property you are considering. A higher rating means that the property is more energy efficient and will cost less to run, which can save you money on utility bills in the long run. It can also indicate that the property is more environmentally friendly, as it is using less energy and producing fewer greenhouse gas emissions.
REALLY, CAN IT SAVE ME MONEY?
Well, it is worth noting that the energy label is not a guarantee of energy efficiency, as it is based on theoretical calculations and does not take into account factors such as user behaviour. However, it can still be a useful tool for comparing properties and making informed choices.
HOW DO I GET IT?
First, look if your home already has an energy label at https://www.ep-online.nl/
The application is no longer completed online. You have to make an appointment with a certified energy adviser, that will visit your home. Make sure you have as much as relevant documents available when the advisor will visit your home. Documents about the house, drawings, pictures, receipts, if you have refurbished or upgraded the house than add the bills and any other relevant information you might have.
ARE THERE ANY EXEMPTIONS?
If you own a monument build, you may be relieved to know that you do not need an energy label. The reason for this exemption is that monument builds are considered to be part of our cultural heritage. They are protected by law to preserve their historical and cultural value. As a result, any structural changes or renovations to the building must be carried out with extreme care and in accordance with strict regulations.
For all other exemptions we recommend you to visit the website of the government (Dutch).
Any questions left? Give us a call!
The Art of Bidding
The art of bidding on a property is one that requires years of practice. Having someone with the right kind of experience in your corner cannot be underestimated. Luckily, Barry Burgemeester possesses both the diligence and the know-how when it comes to getting bang for your buck! We sat down with Barry recently to answer your burning questions when it comes to bidding on a home in the Netherlands.
- What exactly does it mean to 'bid' on a house in the Netherlands?
A 'bid' means that you're showing interest in purchasing a house - it's more like a gesture, or even a proposal. Remember; bidding is not just about the price - flexibility, restrictions on finance and your budget are all things the seller will consider before proceeding with your offer. If you're not sure about how to present yourself when it comes to the tender - don't worry! That's where your real estate agent comes in.
- From start to finish, what happens during the bidding process?
Your real estate agent will propose the content and then make the offer to the selling agent or seller on your (the client's) behalf. To make the client as attractive as possible to the seller, your real estate agent will help you to develop a sort of ‘portfolio’ to make you stand out from the crowd. Remember, there are usually a LOT of people competing for the same property, so preparation is key.
- Why can't I just bid on a home myself? Why do I need a real estate agent?
There's a lot to do when you're trying to secure your dream home - if it was that easy, Barry wouldn't have a job! For a start, everything moves very fast and is always negotiated in Dutch. This means that it can be hard to keep up if you don't speak the language, let alone if you're unaccustomed to the market. With a good real estate agent, you'll be bidding on properties that are both good value and within your budget.
- If I need to overbid, what do have to be aware of?
Amsterdam has an extremely overheated market. It's often the case that there will be an influx of interest on the same property, which means you'll almost always have to overbid; the question is, by how much? Well, there's never a right answer here, however your real estate agent is always the best person to advise on a strategic approach that will be mutually beneficial for both you and the seller.
- How do I finance a bid if I don't know how much to overbid by?
Good question! Prior to submitting a bid, you'll need to consider how to finance the extra cost overbidding will incur. This is why a real estate agent is crucial. With Barry's background and extensive experience, he can advise an estimate on how much you'll need in total so you can secure your finances, get your ducks in a row and be ready to strike while the iron is hot!
- What happens if and when I win the bid?
Firstly, congratulations! However, do remember that the initial verbal agreement or email confirmation is not binding for the seller and buyer. A deal is only binding after all parties has signed the sale and purchase agreement, so Barry will be your right-hand man in ensuring this process goes smoothly. If you have any questions along the way, don’t be afraid to ask!
So that’s it! We know bidding can be a daunting task for many when it comes to buying your first home, especially in such an unfamiliar market. Bidding is a craft that needs to be honed, but with the right real estate agent you can be safe in the knowledge that you’re being put first. To get in touch, email info@burgemeestervastgoed for a free consultation today.
Who is Barry Burgemeester?
Barry Burgemeester is a certified real estate agent and has worked in the property market for more than 23 years. Originally hailing from Utrecht, he is incredibly passionate about what he does and loves helping clients in Amsterdam and beyond. Specializing in helping expats to find their dream home, Barry is an expert at guiding them every step of the way.
A Fast-Growing Market
Considerations When Buying A Home In The Netherlands
Buying a house is no mean feat. For most, purchasing a home may be the biggest investment one ever commits to. There are many reasons to want your own home; from the sense of stability and security to financial incentives such as tax benefits, there are an abundance of pros to owning your property. However, taking a leap and putting your hard-earned savings into the right kind of home can be daunting, especially in another country when one is unaccustomed to procedures, regulations and language – that’s where we can help!
An Unusual Market
Amsterdam’s property market is an unusual one, to say the least. Whether you intend on living in the building yourself or renting it out to tenants, finding the perfect fit for your criteria is essential. Firstly, consider your goal for the property. Is it just for you, your family or an external party? Is the home intended for the long haul or a temporary solution? How important is the location? Do you require amenities within close proximity, such as the commute time to your workplace, schools or recreational facilities that you regularly use? Drafting a list of goals and necessities will make it easier for your real estate agent to narrow down potential opportunities that fit your needs, making your journey smoother and more efficient.
Budgeting
The next, and arguably, most crucial element of consideration, should be your budget. The demand within the housing market in Amsterdam has sky-rocketed over the last few years, and factors such as Brexit have caused this number to soar even further. It has been estimated that Amsterdam’s population will exceed over 1 million residents by 2035. This exponential growth may seem harrowing, especially for first-time buyers. The uncertainty surrounding the economy and job market as a result of COVID-19 has made searching for a home without an advisor even more precarious.
Navigating Unfamilar Territory
Due to the increase in residents and market ambiguity in the wake of the pandemic, the gap between supply and demand has widened significantly – and so too has the price of buying a home in The Netherlands. Fluctuating prices reflective of an unstable economy make it hard to know when a home you have your eye on is a good deal or a nightmare waiting to happen. A perceptive real estate agent will help you to navigate prospective homes, costs and advise you on the necessary steps so you can feel confident in the knowledge that you are making informed decisions when in unfamiliar territory.
Cost-Effective Solutions
If you are unsure about what you can afford, a mortgage advisor or bank can help you to weigh up your income and expenditure to determine the most cost-effective solutions for you when it comes to purchasing your property. From there, we can draw up a list of appropriate options to suit your needs. Remember, expats can benefit from a multitude of tax breaks in The Netherlands – doing your due diligence prior to the big move can save you a lot of hassle, and increase your chances of getting the best value for money!
Experts In The Expat Market
At Burgemeester Vastgoed, we have grown our base in Amsterdam over 18 years, nurturing strong relationships with our clients, many of whom return to us time and again to seek advice on new investments. As experts in the field, expats feel a sense of comfort in our friendly, knowledgeable approach. Authenticity, loyalty and fostering a solid rapport between our colleagues are the fundamental building blocks of our business. If you are thinking of purchasing a home in The Netherlands, we would love to sit down and have a chat, no strings attached! Get in touch today at info@burgemeestervastgoed.nl.