Buying a house in the Netherlands can be an exciting yet complex process, especially for newcomers. One of the most important aspects of purchasing property in the Netherlands is the involvement of a notary public (notaris). The notary plays a crucial role in ensuring the legality and security of the transaction. In this guide, we’ll explore the role of the notary public in buying a house in the Netherlands, why their services are essential, and what you can expect during the process.

What is a Notary Public in the Netherlands?

A notary public in the Netherlands is a legal professional who is appointed by the government to oversee and authenticate important legal transactions, including property sales, wills, and company formations. Notaries are impartial and serve as an independent third party in transactions, ensuring that the interests of all parties involved are protected. The notary profession is centuries old and is taken very seriously by all involved parties. While bad apples exist, in general the notary is an institution with a lot of trust.

Key Responsibilities of a Notary Public

• Drafting and Reviewing Legal Documents: The notary is responsible for preparing and reviewing all necessary legal documents related to the property transaction, including the purchase agreement (koopakte) and the deed of transfer (leveringsakte).
• Ensuring Compliance with Dutch Law: The notary ensures that the transaction complies with Dutch property laws and regulations. They verify the identities of the parties involved, check the property’s legal status, and ensure that all legal requirements are met.
• Managing Financial Transactions: The notary manages the transfer of funds between the buyer and the seller. They ensure that the purchase price is paid in full and that all relevant taxes and fees are settled.
• Registering the Property: After the transaction is completed, the notary registers the new ownership in the Dutch Land Registry (Kadaster), making the transfer official and legally binding.

Why You Need a Notary When Buying a House in the Netherlands

In the Netherlands, the involvement of a notary is not just recommended but mandatory when buying a property. Dutch law requires that all property transactions be overseen by a notary to ensure the legality and transparency of the process. Here are some reasons why a notary is essential when buying a house in the Netherlands:

1. Legal Protection

The notary acts as a legal safeguard for both the buyer and the seller. They ensure that the transaction is conducted fairly and that all legal obligations are fulfilled. This protection is particularly important for newcomers who may not be familiar with Dutch property laws and procedures.

2. Impartiality

Unlike other parties involved in the property transaction, such as real estate agents or mortgage brokers, the notary is completely impartial. They do not represent the interests of either the buyer or the seller, but rather ensure that the transaction is legally sound and that both parties understand their rights and obligations.

3. Verification of Ownership and Legal Status

One of the critical roles of the notary is to verify the ownership and legal status of the property. They check the property’s records in the Dutch Land Registry (Kadaster) to ensure that there are no legal issues, such as outstanding mortgages or disputes, that could affect the sale. If you come from a country where land registration is less efficient or complete this may seem strange, but since the land registry is a government office, the records are considered the truth in any dispute. The notary plays an important role in keeping the register intact.

4. Managing Financial Transactions

The notary plays a vital role in managing the financial aspects of the transaction. They hold the buyer’s funds in a secure escrow account and ensure that the seller receives the payment only after all conditions of the sale have been met. This process protects both parties from potential financial risks.
To get the mortgage you need the property, and to get the property you need the mortgage. This situation is tackled by the notary by completing the transaction in one sitting. So the buyer does not end up with a free property and the seller does not end up with both the money and the property.

5. Registration of Ownership

The notary is responsible for registering the transfer of ownership with the Dutch Land Registry. This registration is a crucial step, as it makes the transfer legally binding and ensures that the buyer is recognized as the new owner of the property. You will also get copies of all deeds for your own administration. Since the land registry is a public register you can also use it in the process of buying a house to get an understanding of the value of the property by downloading (for a fee) the existing property records, or selling prices of properties in the area you are looking at.

The Notary Process When Buying a House in the Netherlands

1. Selecting a Notary

The first step in the process is selecting a notary. In the Netherlands, buyers typically have the right to choose the notary, though in some cases, the choice may be negotiated with the seller. It’s essential to choose a notary with experience in property transactions, particularly if you’re new to the Netherlands and unfamiliar with the legal system.

When selecting a notary, consider factors such as:

• Location: Choose a notary who is conveniently located, especially if you need to visit their office multiple times during the transaction.
• Language Skills: If you’re not fluent in Dutch, it’s advisable to choose a notary who can communicate in English or your preferred language. It is also possible to arrange for a translator during the signing session. This will be charged separately.
• Fees: Notary fees can vary, so it’s a good idea to request quotes from several notaries before making your decision. Keep in mind that while cost is important, the notary’s expertise and service quality should also be considered.
• Other services provided: buying a house might also be a good time to tackle some other legal possibilities, like a registered partnership or a will, to formalize what will happen to the property in case one of the partners passes away, or the partners decide to split up.

2. Preliminary Meeting

Once you’ve chosen a notary, you’ll typically have a preliminary meeting to discuss the transaction and provide necessary documentation. This meeting is an opportunity for the notary to explain the process, answer any questions you may have, and gather information about the property and the parties involved. Since most property transfer processes are straightforward in nature this can also be arranged in a few emails.

3. Drafting the Purchase Agreement

The notary might draft the purchase agreement (koopakte), which outlines the terms and conditions of the sale. This document is crucial, as it legally binds the buyer and the seller to the transaction. The purchase agreement includes details such as:

• Purchase Price: The agreed-upon price for the property.
• Transfer Date: The date on which ownership of the property will be transferred to the buyer.
• Conditions of Sale: Any conditions that must be met before the sale can proceed, such as securing a mortgage or conducting a property inspection.
• Deposit: The amount of the deposit (usually 10% of the purchase price) that the buyer must pay as a sign of good faith.

Both the buyer and the seller must review and sign the purchase agreement. It’s essential to read the document carefully and ensure that all terms are clear and agreed upon. The notary will explain any legal jargon or complex clauses to ensure that you fully understand your obligations.

it is also possible that the realtor uses his/her own purchase agreement, in which case more due diligence as a buyer is needed. Check if a model contract is used and the contract does not deviate from the model.

4. Financial Arrangements

After the purchase agreement is signed, the notary will handle the financial arrangements. This includes:

• Holding the Deposit: The buyer typically pays a deposit (usually 10% of the purchase price) into the notary’s escrow account. The notary holds this deposit until the transaction is completed.
• Mortgage Arrangements: If the buyer is financing the purchase with a mortgage, the notary will work with the lender to ensure that the mortgage funds are transferred to the escrow account in time for the property transfer.
• Final Payment: The notary will calculate the final payment amount, which includes the remaining purchase price, any outstanding fees or taxes, and the notary’s fees. The buyer must transfer these funds to the notary’s escrow account before the transfer date.

5. Signing the Deed of Transfer

On the transfer date, the buyer and seller will meet at the notary’s office to sign the deed of transfer (leveringsakte). This document officially transfers ownership of the property from the seller to the buyer. The notary will read the deed aloud, ensuring that both parties understand the terms and that there are no discrepancies. If a mortgage deed is necessary this will also be signed at this time. For this part the seller is not required, since it will be co-signed by the mortgage company, who in most cases will mandate an employee of the notary office to sign on their behalf.

After both parties (buyer and seller) have signed the deed, and rhe mortgage deed is signed, the notary will:

• Transfer Funds: The notary will release the purchase funds from the escrow account to the seller.
• Register the Transfer: The notary will register the deed of transfer with the Dutch Land Registry (Kadaster), making the transfer official and legally binding.
• Handover of Keys: Once the transfer is complete, the buyer typically receives the keys to the property, marking the final step in the purchase process.

6. Post-Completion Tasks

After the transaction is completed, the notary will provide both parties with copies of the signed documents and a final statement of accounts. The notary will also ensure that any remaining legal formalities, such as updating the Land Registry records, are completed.

Note that the final statement of accounts (as known before the date of transfer) has to be paid before the session. This includes the notary fees. Any additional costs, which become known after the session, like a translator, can be paid afterwards. All costs incurred are tax deductible.

How Much Does a Notary Cost in the Netherlands?

Notary fees in the Netherlands can vary depending on the complexity of the transaction and the notary’s experience. On average, you can expect to pay between €1,000 and €2,500 for the notary’s services when buying a house. These fees typically cover:

• Drafting and Reviewing Documents: Including the purchase agreement and deed of transfer.
• Managing Financial Transactions: Holding the deposit, arranging mortgage payments, and transferring funds to the seller.
• Registration of Ownership: Filing the necessary documents with the Dutch Land Registry.

It’s important to note that notary fees are usually paid by the buyer and are due at the time of the property transfer. It’s a good idea to ask the notary for a detailed fee breakdown before proceeding with the transaction.

Conclusion

The role of the notary public is central to the process of buying a house in the Netherlands. They ensure that the transaction is legally sound, manage financial arrangements, and register the transfer of ownership. For newcomers to the Netherlands, understanding the notary’s role is crucial to navigating the property purchase process smoothly and securely.

By choosing an experienced notary, carefully reviewing all documents, and following the necessary steps, you can ensure a successful property purchase in the Netherlands. Whether you’re buying your first home or expanding your real estate portfolio, the notary’s expertise and impartiality provide the legal protection and peace of mind you need throughout the transaction.