Purchase agreement: cooling-off period, cancellation and conditions

What the purchase agreement contains

If you have made an offer and the seller agrees, that is recorded in a purchase agreement (koopovereenkomst). That document covers more than the price alone. It also states the cooling-off period, the conditions precedent and the date of the handover of the keys.

In our buying support your dedicated agent always goes through this contract with you before you sign. So you know exactly which agreements you are making and which deadlines come with them.

Many purchase agreements are based on the model of the NVM, the largest association of estate agents in the Netherlands. You can request such a model through the agent or notary involved, but the gain does not sit in downloading the contract. It sits in reading it carefully and getting the right conditions precedent into it.

• The purchase price and what does and does not come with the property
• The statutory cooling-off period
• The conditions precedent and their deadlines
• The date of transfer at the notary
• The penalty if one of the parties does not keep to the agreement

The cooling-off period: at least three working days

The cooling-off period is required by law and lasts at least three working days after you receive the contract signed by both parties. During that period you can withdraw from the purchase without giving a reason and without penalty. You do not have to explain or prove anything.

In Amsterdam a longer period often applies. Under the Amsterdam model a cooling-off period of six weeks is regularly used instead of the standard three working days. That is then explicitly stated in the contract, so always check which model is being used and which period it contains.

Conditions precedent: when you can still stop later

Besides the cooling-off period, a purchase agreement usually contains conditions precedent (ontbindende voorwaarden). Those are clauses under which you can cancel the purchase free of charge if something does not work out. Think of financing that falls through or a building survey that disappoints.

Cancelling on the basis of such a condition is different from the cooling-off period. The deadline is longer, usually a few weeks, and you have to show that the condition has not been met. That is why it matters that the conditions are realistically worded, with deadlines you can meet with your mortgage adviser and your building surveyor.

Your dedicated agent makes sure the conditions fit your situation. That can concern financing, a building survey or the sale of your current home.

• Financing: you cannot arrange the mortgage within the agreed period
• Building survey: the repair costs exceed an amount stated in the contract
• Sale of your own home: your current house is not sold within the period
• National Mortgage Guarantee or a permit, if that applies in your situation

Registration with the Land Registry

After signing, it can be wise to register the purchase agreement with the Land Registry (Kadaster). That registration protects you as a buyer. It prevents the seller from selling the home to someone else during your process and stops the seller's creditors from seizing the property.

Registration is not compulsory, but it is advisable. The notary usually arranges it. Your dedicated agent points it out in good time, so it does not get left behind.

Cancelling without valid grounds costs money

If you want to cancel the purchase agreement after the cooling-off period has passed, that is only possible through one of the conditions precedent in the contract. Cancelling without valid grounds can lead to a penalty, often ten per cent of the purchase price.

That is exactly why it pays to be sharp at the start. Sound conditions and achievable deadlines when you sign prevent a problem that cannot be solved later.

We support you not only with the offer and the negotiation, but through this whole stage around the purchase agreement: from the cooling-off period and the conditions precedent to registration with the Land Registry. That is part of the fixed all-in price of €2,499, with no separate costs afterwards. You pay only at the notary, and if the purchase does not go ahead, you pay nothing. Note: transfer tax, notary fees, a valuation report, a building survey and mortgage advice are paid separately. All-in refers to our agent's fee.