Table of contents
Signing the purchase agreement is a crucial moment in the buying or selling process of a house. But what exactly is in the purchase agreement? Who drafts the document? And when is the purchase contract final? We answer your questions step by step.
What is a purchase agreement?
The purchase agreement is the official document you sign when buying or selling a house. It is also known as the (provisional) purchase contract or the deed of sale. The purchase agreement records all important agreements between the buyer and the seller regarding the property. Think of the purchase price, any dissolving conditions (such as a financing reservation), the planned date of transfer, and other agreements. The document forms the basis for the purchase of the house.
When is a purchase agreement valid?
A purchase agreement is only valid if it is laid down in writing and signed by both parties (buyer and seller). This way, it is clear what has been agreed: think of the conditions and obligations mutually. This prevents any ambiguity or discussion later.
The requirement of written form
This requirement is also known as the 'requirement of written form' and has been enshrined in law since 2003. An oral agreement is therefore not valid. This sometimes leads to disappointment. For example, you cannot rely on an oral promise from (for example) a Real estate agent. So wait to pop the champagne until everything is on paper and signed!
Note: the requirement of written form only applies when the buyer is a consumer. If the buyer is not a consumer, the requirement does not apply.
What is the difference between a purchase contract and the deed of transfer?
The purchase contract is an agreement in which you make arrangements about the purchase of the house, after an offer has been made and this offer has been accepted. The deed of transfer is an official document drawn up by the notary, in which the ownership of the house is actually transferred from the seller to the buyer.
In short, the purchase contract regulates the conditions and agreements for the sale, while the deed of transfer is the legal act that completes the transfer of ownership - and ensures that the buyer becomes the new owner of the property.
Below we have put the main differences for you in a table:
Deed of Sale |
| Deed of Transfer |
Informal (can be done by anyone) |
| Authentic (form requirement by notary) |
Ensures the transfer of ownership |
| Regulates the purchase agreement |
Generally has no resolutive conditions |
| Often has resolutive conditions |
Must be registered |
| Can be registered (Vormerkung) |
Must be recorded |
| Can be recorded |
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When is the purchase agreement signed?
The purchase agreement is signed after both parties, the buyer and the seller, have reached an agreement on the main terms of the transaction. This includes the price, any resolutive conditions, and the delivery date. After these details have been discussed and agreed upon, the draft of the purchase contract is drawn up.
Who drafts the purchase agreement?
The purchase contract is usually drawn up by the seller or their selling real estate agent. It is then presented to the buyer. If they agree with the content, any final adjustments are made, and the final purchase agreement is drafted. Once all parties are satisfied with the content, the purchase contract is signed.
It is important to realize that the purchase agreement is a legally binding document. Both the buyer and the seller must adhere to the terms laid out in it. It is therefore crucial to read and understand the contract carefully. If you have a buyer's real estate agent, they will always review it with you. You can also engage another professional for advice.
What things are included in the purchase agreement?
The following points are included in the purchase contract:
- The details of the buyer and seller, such as name and address;
- The details of the property, such as a description of the house, the address, any leasehold, and the cadastral data;
- The selling price of the house;
- Any resolutive conditions, such as a financing reservation or a structural inspection;
- The delivery date: the date on which the transfer of ownership takes place;
- The amount and date of the deposit or bank guarantee;
- The details of the notary responsible for the transfer of ownership;
- Which party pays the costs for the transfer of ownership. Usually, this is the buyer (costs for the buyer), but it can also be the seller (freehold);
- The validity period of the purchase contract, i.e., the period within which the purchase agreement is valid;
- The energy label of the property;
- Any penalty clause regarding non-compliance with the agreement;
- Other agreements between buyer and seller, for example, regarding taking over furniture.
There are more points that you can include in a purchase agreement. Which ones depend on the situation.
Standard purchase contracts for homes
Many real estate agents use the standard models of the three major professional organizations when selling homes. We have written an explanation of all the provisions in the NVM, VBO & VastgoedPRO Model Agreement.
When does the provisional purchase contract become a final purchase contract?
Actually, there is no difference between a provisional and a final purchase contract. The signed purchase contract is first called a 'provisional purchase contract' because the buyer can still avoid the obligations under the contract under certain circumstances. Think of the legal reflection period of three days and any resolutive conditions.
The moment of signing makes the contract directly binding, but the term 'provisional' refers to the buyer's possibility to get out of the obligations. Is the reflection period over and are there no resolutive conditions? Then the provisional purchase contract becomes final.
The legal reflection period of the buyer
Buyers have three days legal reflection period after they have signed and received the purchase agreement. During these three days, a buyer can - without reason and without financial consequences - withdraw from the purchase of the property. Read more here about withdrawing an accepted offer.
The reflection period is not always exactly three days. The time starts the day after signing the purchase agreement. Of the three days, at least two days must be working days. Sometimes you have longer than three days of reflection.
The buyer and seller can also make other agreements about the reflection period, although it can never be shorter than three days. For certain purchases, there is no reflection period, such as houseboats and mobile homes.
On the Rijksoverheid website you can read more about the rules and exceptions regarding the legal reflection period.
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