More than 12 percent fewer deeds in the first quarter of 2023

Notaries executed significantly fewer deeds in the first quarter of this year than in the first quarter of 2022. In total, they have signed nearly 408,000 deeds so far. That's almost 60,000 fewer than in the same quarter last year, a difference of 12.5 percent.

The real estate practice is the biggest culprit. A total of almost 69,000 fewer mortgage and transfer deeds were executed. The corporate law practice saw a 3.5 percent decrease in deeds. Conversely, the family law practice saw an 8 percent increase.

Sharply increased interest rates
A sharp rise in interest rates and a limited housing supply are the main reasons for the sharp decline in the number of deeds issued in real estate. The stagnation in the housing market in recent years has been offset by a sharp increase in the number of mortgage deeds. With interest rates rising so sharply over the past year, many people are refraining from refinancing their existing mortgage or taking out an additional one. The number of mortgage deeds decreased by a staggering 41 percent in the first quarter, from over 110,000 to almost 65,500. The number of transfer deeds fell from 78,500 in 2022 to 61,000 this year, a decrease of 22 percent.

More (living) wills again
As bad as things are going in real estate, things are going just as well in family law. The demand for wills and living wills, in particular, remains high. While that number was already high last year compared to previous years, this year it continues to rise. Notaries executed approximately 84,500 wills in the past three months, almost 6,500 (over 8 percent) more than in the first quarter of 2022. The number of living wills increased by 12.5 percent during this period, from 47,000 to 53,000. The abolition of the so-called jubelton at the end of last year led to a decrease of over 25 percent in deeds of gift.

Also fewer new private limited companies
The decline in the number of deeds issued in corporate law practice also continued this year. Nearly 19,000 new private limited companies (BVs) were established in the first quarter. This is 2 percent fewer than in the same quarter last year. The number of share transfers and certifications decreased by 500 to 6,150, a decrease of 7.5 percent. The number of newly established foundations decreased by 10 percent to 1,500.

Gloomy expectations
The downward trend in the number of deeds shows no signs of stopping anytime soon. A survey of civil-law notaries shows that they will continue to execute fewer real estate deeds in the near future. Over two-thirds of respondents report a decrease in the number of new cases. 20 percent indicate a decrease of between 25 and 50 percent. For a third, the decrease is limited to between 10 and 25 percent. However, the upward trend in family law practice is also continuing. For 40 percent of respondents, the number of new family law cases has increased. For 11 percent, the increase is limited to 10 percent, and for 25 percent, the increase is between 10 and 25 percent. The number of new cases in corporate law practice appears to be stabilizing. 60 percent of respondents report no change compared to the past period. For 24 percent, the number of new cases has increased, and for 16 percent, it has decreased.