Once the agreement has been signed, a period with strict deadlines begins. As a private buyer, you will usually first have a statutory three-day cooling-off period. After that, you are generally bound by the purchase, unless you can invoke an agreed cancellation clause on time and in the correct way.
The term provisional purchase agreement is therefore misleading. The agreement is binding; only the legal transfer of the home still needs to take place.
Put all deadlines in one overview immediately
After signing, do not wait for the mortgage lender, estate agent or notary to contact you. Take out the purchase agreement and record at least:
- the date on which you received the agreement signed by both parties;
- the end of the statutory cooling-off period;
- the final date of each cancellation clause;
- the amount of financing you need to obtain;
- which supporting documents are required if you want to cancel the purchase;
- the deadline for the deposit or bank guarantee;
- the date of the notarial transfer.
The dates and conditions in your purchase agreement are decisive. Have them checked if any wording or deadline is unclear. Missing a deadline can have serious financial consequences.
When does the statutory cooling-off period run?
The statutory cooling-off period starts at 00:00 on the day after you receive the purchase agreement signed by both parties. During this period, you may withdraw from the purchase without giving a reason and without paying compensation.
The period lasts three days, but it must include at least two days that are not a Saturday, Sunday or recognised public holiday. As a result, the cooling-off period may be longer in practice.
Example: received on Thursday
If you receive the fully signed purchase agreement on Thursday, the cooling-off period starts at 00:00 on Friday. Saturday and Sunday count, but the period must include at least two days that are not weekend days or public holidays. The cooling-off period will therefore normally end at 23:59 on Monday.
Example: received on Monday
If you receive the agreement on Monday, the cooling-off period starts at 00:00 on Tuesday. If there are no public holidays, it ends at 23:59 on Thursday.
Public holidays can affect the calculation. If you want to withdraw from the purchase during the cooling-off period, make sure the seller receives your notice before the period ends. Do this in writing and in a way that allows you to prove both sending and receipt.
Check your cancellation clauses
After the cooling-off period, you can no longer simply withdraw from the purchase. You can only do so if a cancellation clause in your agreement applies and you invoke it correctly.
For each clause, check:
- which event gives you the right to cancel;
- which amount, criterion or result was agreed;
- what the deadline is;
- what efforts are expected from you;
- which supporting documents you must provide;
- who you must notify of the cancellation and how.
For a financing contingency, for example, the agreement may specify the amount for which you must apply for a mortgage and how many rejections or other documents you must submit if you cancel. Do not assume there is one general standard: the wording of your agreement determines what is required.
If it looks like a deadline will be too short, request an extension before the deadline. The seller must agree to it. Simply reporting that the mortgage application has been delayed does not automatically extend the deadline.
Start the mortgage application and valuation immediately
If your mortgage application is not yet underway, you need to start it as soon as possible after signing. The lender will assess your income, financial commitments and the value of the home, among other things. This requires documents and usually a valuation.
Under the current main rule, the mortgage may not exceed 100% of the home's value, apart from specific exceptions. If the appraised value is lower than the purchase price, you may therefore need to contribute more of your own money. A financing contingency only protects you within the conditions and deadline agreed with the seller.
Arrange the deposit or bank guarantee
The purchase agreement will often state that you must provide financial security before a particular date. This is done through a deposit or bank guarantee. The agreed amount is often 10% of the purchase price, but the percentage and deadline in your agreement are decisive.
With a deposit, you transfer your own money to the notary's client account. With a bank guarantee, a bank or another guarantor guarantees the amount. You will usually pay a fee for this guarantee.
The deposit is not an additional amount on top of the purchase price. It provides security that you will meet your obligations and is settled upon transfer. If you validly cancel the purchase, the deposit will normally be refunded or the bank guarantee terminated.
Should you register the purchase agreement with the Kadaster?
Registration of the purchase agreement is not mandatory. A notary can arrange this at your request. For up to six months, registration protects you against matters including a later sale of the home to someone else, certain subsequent attachments and certain consequences of the seller's bankruptcy.
This may be particularly worth considering if there is a long period between signing and transfer, or if there are signs that the seller is experiencing financial difficulties. Ask the notary which protection applies in your situation and what costs are involved in registration.
Prepare for the transfer at the notary
If a notary has not yet been chosen, this needs to be done in good time. Among other things, the notary checks whether the seller owns the home, which mortgages or attachments apply to it and which legal details are relevant.
Before the transfer, you will usually receive draft deeds and a completion statement. Check your personal details, the purchase price, settlements, special rights and obligations, and the amount you need to pay to the notary yourself. Make sure the requested documents and funds are provided on time.
The final inspection and handover of the keys
The final inspection usually takes place shortly before your appointment at the notary. You check whether the home is being handed over in the agreed condition, whether included items are present and whether agreed repairs have been completed. Also record the meter readings.
If you discover a problem, document it immediately with photos and a clear description. Discuss it with your estate agent and the notary before signing. Do not withhold part of the purchase price on your own initiative.
At the notary's office, you sign the deed of transfer and, if you are taking out a mortgage, the mortgage deed. The notary then registers the deed of transfer in the Kadaster's public registers. You only become the owner through this legal transfer. You will usually receive the keys around the time of the notarial transfer.
Practical deadline checklist
- Calculate the cooling-off period from the date you received the fully signed agreement.
- Record all cancellation clauses, deadlines and required supporting documents.
- Start or continue the mortgage application and valuation immediately.
- Arrange the deposit or bank guarantee before the contractual deadline.
- Discuss with the notary whether registering the purchase agreement would be worthwhile.
- Provide documents and your own funds to the notary on time.
- Check the draft deeds and completion statement.
- Carry out the final inspection and document any discrepancies immediately.
