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Notarial language

After reading a notarial deed, many people feel dizzy: what does it actually say? So many difficult words! Notaries use those difficult words for a reason, of course. The meaning of these words is fixed, so there can be no dispute later. This way, the notary ensures that everything is clear and legally sound. And if you don't understand something? We're happy to explain it to you in plain language. For example, with this Glossary. #NotaryLanguageWithoutUsing

A

Adoption is the process of taking in a child as if it were your own, creating family law ties between the adoptee, the adoptive parents, and their blood relatives.

Alimony is the financial contribution for living expenses after a divorce. The partner with the greater financial means provides this contribution to the less affluent partner in need and/or to the children from the relationship. There are two types of alimony: spousal support and child support.

Een akte van ontslag hoofdelijke aansprakelijkheid is een notariële akte, opgemaakt door een notaris, waarin de bank (de hypotheekhouder) vastlegt dat een van de geldnemers (hypotheekgevers) niet langer financieel verantwoordelijk is voor de gezamenlijke aangegane hypothecaire schuld.

Bij een verdeling van de gezamenlijke woning, die ter uitvoering van een convenant, wordt toegedeeld aan één van de twee partners, wordt de vertrekkende partner ontslagen uit zijn of haar verplichtingen jegens de bank en is de  achterblijvende partner als enige nog aansprakelijk voor de nakoming van de hypothecaire geldleningsovereenkomst.

An anti-speculation clause is a restrictive condition that can be imposed by both the municipality and the previous owner when selling real estate. Generally, this clause stipulates that the buyer, if the property is sold within a certain number of years, must relinquish a portion of the profit made.

An apartment (referred to as an apartment right in the deed of division) is the specific part of the building over which the owner has exclusive rights of use. The apartment right is identified in the deed of division by an index number.

The apartment index is the number by which the apartment is identified in the deed of division.

Ascendants refer to relatives in the ascending line, such as grandparents and other ancestors.

A deed is considered authentic when it is drawn up by an authorized official, such as registrars or notaries. An authentic deed has the same legal status as a court judgment and also possesses special evidentiary value. This contrasts with a private deed, which can be drawn up by anyone.

Administrative enforcement is a measure in which the municipality requests an owner or homeowners' association (VvE) to address deferred maintenance. If the owner or VvE fails to comply, the municipality has the authority to carry out the maintenance itself and recover the costs from each individual owner.

At an auction, bids are placed on objects, such as registered property or movable property. The seller or the auctioneer, such as a bank, awards the object to the highest bidder or not. Awarding the object to the highest bidder is called "awarding."

The annual accounts comprise the accounting for a closed financial year, including the profit and loss account and the balance sheet.

A written or oral agreement between two or more people.

All additional costs incurred when buying a home, beyond the purchase price. This includes, for example, financing costs, notary fees, and transfer tax.

An application to the tax inspector for a decision requiring the employer to take mortgage interest deduction into account when withholding payroll tax.

An aesthetic committee assesses building plans and advises the municipality, which decides on the building permit.

The effective interest rate is the actual interest income for the bank, including the closing fee and the timing of the interest payment.

B

Gebruikelijk is dat de koper van een registergoed de koopsom in handen van de notaris stort. Bij een levering van een registergoed plegen verkoper en koper met elkaar overeen te komen dat de levering vrij van hypotheken en beslagen plaats zal vinden. Volgens het arrest van de Hoge Raad van 30 januari 1981, NJ 1982, 56 (Baarns beslag) mag de notaris in dat geval de tegenprestatie van de koper pas ter beschikking stellen van diens wederpartij nadat hij heeft gecontroleerd dat de levering inderdaad vrij van hypotheken en beslagen heeft plaatsgevonden. Een correcte narecherche zal moeten uitwijzen of hieraan is voldaan.

Wanneer de notaris kan uitbetalen, hangt dus af van het tijdstip waarop de narecherche een actueel beeld geeft van hypotheken en beslagen die aan de koper kunnen worden tegengeworpen. Dit tijdstip hangt af van de snelheid waarmee het Kadaster aangeboden hypotheken en beslagen signaleert. De notaris dient de termijn af te wachten die het Kadaster daarvoor maximaal nodig heeft.

Van een Baarns Beslag procedure is sprake als er twee notarissen zijn betrokken bij een levering- en hypotheekdossier. De ene notaris verzorgt de levering. De andere notaris verzorgt de hypotheek. 

Stel wij doen de hypotheekakte, maar een andere notaris verzorgt de akte van levering. De gelden worden door de andere notaris bij ons opgevraagd en moeten door ons op de dag van levering worden overgemaakt aan die andere notaris.

Stel wij doen de akte van levering, maar een andere notaris verzorgt de hypotheekakte. De gelden worden door ons opgevraagd en moeten door ons op de dag van levering worden ontvangen van die andere notaris.

De beide notarissen die betrokken zijn bij een Baarns beslagprocedure moeten met elkaar op grond van een vastgestelde en in een tussen hen in een door beiden ondertekende brief vastgelegde procedure met elkaar handelen. 

Omdat dit tot (extra) niet-gebruikelijke werkzaamheden leidt zal er bij betrokken partijen door de notarissen een toeslag in rekening worden gebracht voor deze werkzaamheden.

A bank guarantee is the obligation that a bank assumes to pay a fixed amount at the first request of the creditor.

Accepting an inheritance subject to inventory is called beneficiary acceptance. With beneficiary acceptance, the heir is not liable for any debts of the deceased or testator in the event of a negative inheritance.

Your blood relatives are your (grand)children, (grand)parents, siblings, and the siblings of your (grand)parents. They share a common "ancestral line" and are therefore related by birth. These same individuals become related to your partner by marriage, also known as in-laws or "the cold side."

The blocking arrangement aims to prevent third parties from joining a private limited company by restricting the transfer of shares. This can be achieved through an offer clause or an approval clause in the articles of association.

Offer scheme:
If a tender offer provision is included in the articles of association of a private limited company (BV), a shareholder wishing to sell their shares must first offer them to the other shareholders. This gives the existing shareholders the first opportunity to acquire the shares. The articles of association specify to whom and when the shares must be offered, and the procedure to follow if there is no interest or if multiple shareholders express interest in the shares.

Approval scheme:
If a BV's articles of association include an approval provision, a shareholder wishing to sell their shares must first obtain approval from a specific body of the company, as stipulated in the articles of association, before transferring the shares. If approval is not granted, the same body must designate an existing shareholder willing to acquire the shares. If this does not happen, the selling shareholder is completely free to transfer the shares.

The blocking arrangement often arises when dissolving a shareholding or in disputes between parties. It can raise questions, such as: Are you required to tender your shares? Are you obligated to buy your co-shareholder's shares? Are there ways to circumvent the blocking arrangement or tender obligation?

Bare ownership is the ownership of an asset without the beneficiary's rights and obligations. For example, you own a house or land, but you don't enjoy it and bear no burdens such as expenses. No compensation is received for its use. Nevertheless, any increase or decrease in value is part of bare ownership.

Het boedelregister is een openbaar register van de rechtbank, waarin informatie wordt gegeven over de situatie van een nalatenschap van een overleden persoon.
Er staat bijvoorbeeld of een erfgenaam heeft verworpen of beneficiair aanvaard en bij wie de nalatenschap in behandeling is.

A surety is a person who acts as guarantor for another person, making him or her liable if that other person fails to meet his or her obligations.

Suretyship is an agreement whereby a third party undertakes to a creditor to fulfil an obligation of the debtor if the debtor himself fails to do so.

The Building Decree is a collection of regulations regarding construction and renovation work.

A natural or legal person who is no longer able to pay his debts is considered bankrupt.

When an individual or entity is no longer able to pay its debts, bankruptcy can occur. Bankruptcy can be declared at the individual's own request or at the request of creditors. The petition is filed with the court, which then declares bankruptcy. A trustee is then appointed by the court. This trustee manages the assets of the bankrupt individual or entity and settles the bankruptcy estate by collecting what can still be collected and paying creditors to the extent possible and according to preferential terms.

In some municipalities, working in the region is a requirement for obtaining a residence permit for a house below a certain purchase price.

The costs associated with purchasing existing properties include notary fees, disbursements, and often transfer tax. Sellers face identification costs and costs for canceling their mortgage. Notary offices distinguish between standard and unusual fees, with unusual fees being charged extra. It's important to keep this in mind when requesting quotes and not to compare apples and oranges. Our rates are transparent and can be found on our website.

The physical building itself, separate from the associated land.

Insurance that protects your home against damage caused by events such as fire, storm, lightning and burglary.

A bridging loan is used to cover the period until the sale of an existing home, after a new one has already been purchased. This is usually only possible for a limited period.

Taxes such as property tax and water board levies, as well as possible sewer and land taxes that may apply to a home.

C

Closing costs include all expenses required to take out a mortgage, including closing fees, notary fees, and appraisal costs.

An origination fee is the amount the bank charges as compensation for providing a mortgage loan. This fee is typically a percentage of the loan, usually around 1%.

Cancellation fees are charges levied by some banks when you decide to abandon a mortgage after previously accepting the offer.

An owner, leaseholder, or superficiary has the right to divide their interest in a building and its appurtenances, as well as the associated land and appurtenances, into apartment rights. Apartment rights refer to a share in the properties involved in the division. This share includes the exclusive right to use certain parts of the building that, based on their layout, are intended or will be used as a separate entity. This share may also include the right to exclusively use certain parts of the land surrounding the building.

Terms and conditions are agreements or arrangements.

Construction interest is the interest charged from the moment the purchase contract is signed until the delivery of a new-build home.

A lease refers to a periodic fee paid by a leaseholder for the use of land they don't own. This is common in leaseholds, where the leaseholder has the right to use the land but doesn't own it.

The Central Register of Wills is an official registry where notaries record wills. It provides a central location where heirs can check whether a deceased person has made a will.

Dutch living wills can be registered in the Central Living Will Register. The actual content of the living will is not recorded, only the information about who drafted the will and by which notary. Registering a living will with the Central Living Will Register is not mandatory, but it is recommended. This way, it remains traceable whether a living will is still valid. Just like a regular will, a living will can be revoked if desired. At the request of you, your proxy, or someone who wishes to arrange matters on your behalf, we can check the register to see if the living will is still up to date.

Certification involves transferring shares for administrative purposes to a newly established trust office foundation. In exchange for the transfer of shares, this foundation issues an equal number of share certificates. The conditions for certification, as well as the conditions for the transfer of certificates, are laid down in the trust conditions. It is essential that the trust office foundation has an independent board. Legal authority lies with the foundation's board, while the certificate holders have economic rights to the certificates. This includes the right to dividends and liquidation distributions. However, the board of the trust office foundation retains control.

A civil procedure is a legal action between two or more parties who are in conflict and cannot resolve it together. In a summons, you explain to the judge what the conflict entails and what you demand from the other party. This is usually a monetary payment, but other demands are also possible. The other party may respond to this. The judge ultimately renders a final decision in a judgment. You can appeal the judgment to a higher civil court.

Sometimes you need to initiate civil proceedings to establish a specific situation, such as a divorce or bankruptcy. These proceedings begin with a petition in which you describe your current circumstances and ask the judge to declare your desired situation. Sometimes, interested parties are allowed to respond to your petition. The judge grants or denies the petition in a decision. You can usually appeal the decision.

If you require a court ruling quickly, you can request an interim injunction. This requires an urgent need.

A codicil allows you to allocate specific assets or a sum of money to a person or charity without having to include it in a will. The codicil can pertain to clothing, jewelry, and/or household goods, and can also include wishes regarding the funeral and social media accounts.

A codicil is a handwritten document that must be dated and signed, and may not be created using a word processor. It is not drawn up by a notary, but its validity can be verified. It is advisable to inform heirs of the existence of a codicil and include it with the will or living will to prevent loss or untraceability.

Comparants are the persons who appear before a notary to have a deed drawn up.

According to Article 7:17 of the Dutch Civil Code, a purchased home must possess properties that the buyer could reasonably expect based on the purchase agreement. Furthermore, the home must be suitable for normal use, without the buyer having to doubt the presence of these properties.

Contract interest rate is the agreed interest rate.

Conversion costs are the costs that a bank charges when a customer wishes to change the fixed interest period or the repayment method of a loan at any time.

To convene is to call a meeting.

Co-parenting is a parenting arrangement in which divorced parents share the care of their children. The parents divide the costs, caregiving, and parenting responsibilities and make agreements about this in a parenting plan. With co-parenting, both parents are actively involved in the children's daily activities, with the children living with each parent alternately.

Conditions for co-parenting include good parental harmony, a reasonable distance between both parents' homes, flexible working hours, and minimizing disruption to the children. Despite an equal division of caregiving and parenting responsibilities, child support can still be determined based on the ability and needs of both parents.

Guardianship means that someone is placed under supervision to protect them when they are unable to adequately manage their own interests. A guardian is appointed by the court and makes decisions about the personal and financial affairs of the person under guardianship. The person under guardianship cannot independently manage their assets and requires permission from the guardian and sometimes the court to enter into agreements. Guardianship offers protection to people with psychiatric disorders, intellectual disabilities, or dementia. Current guardianships are recorded in the public guardianship and administration register.

A curator is responsible for the care of a person under guardianship.

Choosing a domicile is the designation of a specific place as a place of residence for the purpose of exercising rights or fulfilling obligations in a legal act.

A community exists when one or more goods belong jointly to two or more co-owners.

The amount that must be paid to bring a case to court. This covers the costs of the proceedings. Note that additional costs may be involved, such as legal fees or the other party's legal costs, especially if the case is lost. Due to the high costs of legal proceedings, many SMEs choose to engage a mediator to resolve disputes instead. We can act as a mediator.

Legal opinions arising from decisions of various judicial bodies and relevant to comparable cases.

An agreement is generally valid only between the contracting parties. However, with real estate, it can be agreed that certain obligations are transferred to the new owner upon sale. These are obligations to tolerate or refrain from doing something. This is called a qualitative obligation, as defined in Article 6:252 of the Dutch Civil Code. For a qualitative obligation to be effective, it must be recorded in a notarial deed that is registered in the public registers of the Land Registry. This way, future owners are automatically bound by the clause.

The chain clause is often confused with the qualitative obligation under Article 6:252 of the Dutch Civil Code. With a chain clause, a provision in a deed is repeatedly passed on to successive parties. This does not happen automatically, as with a qualitative obligation; a legal act is required. A chain clause can be applied when the concept of a qualitative obligation does not apply, such as in the case of an obligation to do or provide something. A penalty clause is often attached to a chain clause to reinforce it, but this chain can be broken.

After a divorce, both parents remain financially responsible for the children and have a maintenance obligation. Often, one ex-partner is designated as the "custodial parent," which often entails higher costs. The custodial parent is entitled to receive child support from the other parent, regardless of contact between the parent and children. The obligation to pay child support lasts until the child turns 18. After that, there is a continued maintenance obligation for living expenses and education until the child turns 21.

The amount of child support can be determined by mutual agreement and recorded in the parenting plan. If no agreement is reached, the judge can set the amount. The amount of child support depends on two variables: the child's needs and the parents' ability to pay.

The minimum statutory portion that a child receives from his or her parents' estate.

All costs incurred when taking out a mortgage, including closing costs, notary fees, appraisal costs, etc.

All deductible costs incurred when purchasing a house for income tax purposes.

Fees charged by some banks when you decide not to apply for a mortgage after having previously accepted an offer.

Costs charged by the bank when you decide to change your fixed-interest period or repayment method during the loan period.

All additional costs incurred when buying a house, in addition to the purchase price, such as financing costs, notary fees, and transfer tax.

A loan to bridge the gap between purchasing a new home and selling the old one. This loan is usually only available for a limited period.

A condition precedent in a contract. If the stipulated condition is not met, the agreement can be terminated. Examples include a financing condition, building inspection, obtaining a residential permit, and the National Mortgage Guarantee.

In a collaborative divorce, partners separate by mutual agreement without the involvement of a judge. This form of divorce can apply to marriages, registered partnerships, or cohabitation agreements. It represents a middle ground between mediation and a traditional divorce, in which both (former) partners have their own lawyer but do not face off in court.

Partners agree to negotiate until a consensus is reached. To guide this process, a team of experts is assembled. This team consists of the lawyers, a coach, often a financial advisor, and sometimes other experts. This team organizes meetings with both partners.

A collaborative divorce is usually completed quickly and is generally more cost-effective. A collaborative divorce takes place in a calm and open atmosphere, with mutual respect. This leads to sustainable solutions that both partners support and that allow more room for personal wishes and interests.  

Fees charged by the bank when taking out a mortgage, usually 1% of the total loan amount.

In a cohabitation agreement, partners specify which funds and assets belong to both partners jointly. Partners are free to decide what is included in the cohabitation agreement, as there are no mandatory elements according to law. However, the tax authorities and pension funds require that a duty of care be assumed for the tax partnership and the partner's pension.

What can be included in a cohabitation agreement? The following points are usually covered:

- Agreements on financial contributions for each other's livelihood.
- Distribution of the costs for the home.
- Pension plans.
- Division of assets in the event of a divorce.
- Procedures in the event of the death of one of the partners.

To enter into a cohabitation agreement, both partners must meet certain conditions:

1. Both partners are over 18 years of age (of legal age).
2. Neither partner is under guardianship.

A person who has a claim, for example because he or she has lent money to someone else.

Declaration confirming that the purchased land is free of harmful substances.

The act of replacing one object with another object.

D

Descendants refers to children, grandchildren, and great-grandchildren.

The costs you incur when purchasing a house that you can deduct from your income tax are:

  • Advice and brokerage costs for your mortgage advisor
  • Commitment fee
  • Notary costs for the mortgage deed
  • Cadastral rights for the mortgage deed
  • Valuation costs for obtaining the loan
  • Costs for applying for the National Mortgage Guarantee,
  • Penalty interest
  • Construction interest that you paid after signing the preliminary purchase contract, but before signing the mortgage deed and
  • Costs for your new construction deposit or renovation loan or renovation deposit

Not deductible are:

  • Brokerage costs for the purchase of the home, for example real estate agent commission
  • Transfer tax and sales tax
  • Notary fees and cadastral fees for the deed of transfer
  • Maintenance and renovation costs (for a national monument building, you may deduct these costs under certain conditions)
  • Repayment of mortgage debt
  • Interest and costs of a loan that is not considered a mortgage due to the additional loan scheme
  • Interest on loans you took out to pay deductible interest and loan costs, such as a loan to pay penalty interest or construction interest. (Interest on a loan taken out before January 1, 2001, to pay deductible refinancing costs or construction interest is deductible.)
  • Costs of a bank guarantee for paying a deposit.

Deed of transfer is a synonym for deed of transfer.

The deed of transfer is a notarial deed that records the transfer, in accordance with the purchase agreement. In the case of a registered property, such as a house, the deed is registered with the land registry.

Deed of conveyance is a synonym for deed of transfer.

The daily interest rate is the current interest rate applicable to new mortgage loans.

Discharge means the board's approval of the policies pursued or the annual accounts. After discharge, the board is no longer responsible for the policies pursued. Discharge is often not handled as a separate agenda item, but follows from the approval of the annual accounts and approval of the board's explanation of the policies pursued. However, discharge does not extend to matters unknown before the meeting or to cases of mismanagement or abuse.

A 'deadlock' in corporate law arises when two shareholders in a private limited company, often also the two directors, are unable to reach a decision due to an equal 50% share distribution.

To prevent this, shareholders/directors can contractually establish the terms and procedures for parting ways before the company is incorporated, known as a "shootout." This "shootout" has several variations, such as the "Texas Shootout," the "Mexican Shootout," and the "Russian Roulette."

In Russian Roulette, one shareholder (A) specifies the price at which they wish to sell their shares to the other shareholder (B). B then has the option to accept or decline this price. If B declines, they must sell their shares to A at this price.

In the Texas Shootout, shareholder A makes an offer for shareholder B's shares. B can accept or reject this offer. If B rejects the offer, he must make a counteroffer for A's shares at a higher price than A offered. A can then accept or reject this offer. This process continues until one of the two accepts the other's offer.

In the case of a "Mexican shootout," both shareholders announce to an independent third party (notary) the price at which they are willing to acquire each other's shares. The shareholder with the lowest bid is then obligated to transfer their shares to the shareholder with the highest bid, at the price offered by the latter.

The advantage of these contractual provisions is the flexibility to create a customized arrangement. However, it is essential to do this in advance, especially if the parties are still on good terms.

Domicile refers to a person's legally recognized place of residence.

The drag-along right is a term that is often used in the world of venture capital, business angels and informal investors.

It gives an investor or shareholder the right to sell their shares to another party without the consent of the company's directors, entrepreneur, management team, or other shareholders. Simultaneously, the holder of this right can force other shareholders to sell their shares as well, often under the same terms.

This right is typically included in key documents such as the term sheet, the participation agreement, and the shareholders' agreement, where it is known as the drag-along clause.

The drag-along clause protects the majority shareholder, giving them the freedom to sell their shares at a time convenient for them or to a buyer of their choosing. This clause keeps the share buyer informed of the terms and conditions during negotiations.

In addition to the drag-along right, there is also the tag-along right, which protects minority shareholders. The shareholders' agreement may contain several such clauses.

There are several variations of the drag-along clause, and founders of a company can impose various conditions on its inclusion in the participation agreement or share agreement. For example, it can be stipulated that the drag-along situation only arises if a predetermined minimum price is offered for the shares. Conditions can also be imposed to ensure that founders are not held responsible for incorrect information provided to the buyer by the holder of the drag-along right.

The drag-along clause is also known as the come-along clause or bring-along clause. In practice, this clause is less frequently used in startup investments, as investors often only want to retain a minority stake in the company to respect the entrepreneur's sense of ownership. However, in more mature companies, the drag-along clause can be useful, especially if the shareholders, including the entrepreneur himself, attach little importance to ownership and if an exit is desired.

The drag-along clause can also be important when preparing for an IPO or Initial Public Offering, where the largest venture capital funder often takes the lead and must have sufficient freedom of action.

Payment.

Notarial deed in which the purchase and sale of an object, such as real estate or shares, is recorded.

Mediation in divorce cases is an alternative dispute resolution method for dissolving a marriage, registered partnership, or cohabitation agreement. A single mediator, usually a civil-law notary, represents both partners, with the goal of reaching an agreement and separating amicably.

During the negotiation process, various topics are discussed, such as the parenting plan, alimony, asset division, pension plans, and so on. The agreements reached are recorded in a divorce settlement, which is signed by both parties and filed with the court.

Mediation in divorce proceedings offers several advantages:
- The divorce process is faster.
- Partners have control over the agreements made.

A gift is an agreement in which the beneficiary is enriched without receiving any consideration in return, which can consist of money, movable property, or immovable property. This often occurs between parents and children and is subject to gift tax.

A person who owes a debt to another, for example because he or she borrowed money from someone else.

The debts of the estate include, among other things, outstanding debts, funeral expenses, executor's fees, settlement costs, inheritance tax, statutory portions and legacies, as laid down in Article 4:7 of the Dutch Civil Code.

An inactive VvE, also called a dormant VvE, is an Owners' Association in which no meetings are held, no dues are paid, and no budget is drawn up. Moreover, this VvE is not registered with the Chamber of Commerce. In short, a dormant VvE is passive and little happens. This can cause problems when maintenance work needs to be carried out; members are often confronted with unexpected costs and have to deposit significant amounts into the VvE fund to cover the costs. Moreover, banks no longer grant mortgages to an inactive VvE. Therefore, it is important to ensure a healthy and active VvE.

The deed of division is a notarial deed drawn up to divide a property into apartment rights. This deed describes the apartment rights and their respective share in the costs of the homeowners' association (VvE). The deed may also contain provisions regarding various distribution keys. The VvE regulations, also known as the division regulations, are part of the deed of division and contain the rights and obligations of the VvE and the various apartment owners. The deed of division usually refers to a model regulation, which can be amended or supplemented.

Synonym for deed of transfer or notarial deed of transfer.

A declaration of inheritance is a notarial deed in which the following matters are recorded:
- Identification of the deceased and the date of death.
- Marriage status of the deceased, including information about the type of marriage.
- Any previous marriages of the deceased and the reason for their termination.
- Identification of the deceased's children, including their living status and any grandchildren.
- The existence and contents of a will, if any.
- The identity of the heirs, the size of their inheritance and their acceptance of the inheritance.
- Any powers of attorney that have been granted and who is authorised to administer and dispose of the estate.

A certificate of inheritance is drawn up by a notary and serves as proof for the heirs to demonstrate their right to the estate. Even if the will was drawn up elsewhere, our office can prepare the certificate.

A certificate of inheritance is necessary because banks will freeze the accounts upon the death of an account holder. To gain access to these accounts, it must be demonstrated that the individuals involved are authorized to do so. Therefore, the bank requires a certificate of inheritance. The tax authorities will also request one for tax refunds and when selling the deceased's home. In such cases, the notary must establish the seller's authority to dispose of the property. A certificate of inheritance is often required immediately after the death to handle the necessary matters.

A defective legal act that can be challenged on the basis of, for example, fraud, abuse of circumstances or mistake.

The consumption or use up of assets.

The obligations that spouses have under marital law with regard to inheritance law.

E

Estate costs include the costs arising from an inheritance, including funeral or cremation costs, notary fees, and other costs of experts such as accountants and tax advisors.

"Economic bondage" is a requirement imposed by some municipalities to obtain a residence permit for a house below a certain purchase price, which requires you to work in the region.

An easement is a legal burden that burdens a piece of land, known as a servient tenement, for the benefit of another piece of land, called a dominant tenement. The owner of the dominant tenement can be obligated to pay the owner of the servient tenement a sum of money—known as a fee—at specified times, whether regularly or not. The easement imposes an obligation on one of the tenements to tolerate or refrain from certain actions. Examples include a right of way, which allows one to cross a neighbor's property to reach, for example, one's own garage, or a neighbor's solar panel that may be installed on the roof of one's own property.

Estate planning is the gradual transfer of wealth from one generation to the next over a period of time, often with the aim of saving taxes, using wills, gifts, and certification of assets.

An "executor" can have three different types of powers: funeral executor, administrative executor, and executor-settlement administrator.

"Foreclosure" refers to a forced sale, such as in the event of non-compliance with obligations under a mortgage loan agreement.

"Foreclosure value" is the value of the collateral at a foreclosure sale.

"Expiration date" is the time at which a contract or part of it expires.

The difference between the market value of a house and the outstanding mortgage debt.

This reference concerns Article 4:46 of the Dutch Civil Code, which prescribes that when interpreting a will, account must be taken of the relationships that the drafter of the will clearly wishes to regulate, as well as the circumstances in which the will was drawn up.

A clause that prevents a gift or inheritance from becoming part of a community of property.

The person who receives an inheritance as a result of a two-step bequest after the death of the beneficiary heir.

An employer's statement is a statement from an employer that is required for registration with an insurance company on behalf of one of its employees.

F

A funeral executor is an executor who is responsible for organizing the funeral of the deceased.

A testamentary disposition, also known as a testamentary disposition, in which the beneficiary does not receive the inheritance directly and immediately from the testator, but rather through a first designated beneficiary.

Married couples, registered partners, and cohabiting couples have the option of filing joint income tax returns. For cohabiting couples, there are certain conditions attached to the fiscal partnership.

In veel gevallen willen ouders hun kinderen gelijk behandelen. Ze zijn je vaak allemaal even lief. Kinderen worden dan ook vaak ieder voor gelijke delen tot erfgenaam benoemd. Als een kind echter lichamelijk of geestelijk beperkt is en zelf geen nakomelingen krijgt, betekent dit dat bij het overlijden van dat kind, de nalatenschap twee keer wordt belast. Dat kun je met fondstestament voorkomen.

Een fondstestament is een testament waarbij de erfenis niet rechtstreeks naar het gehandicapte kind gaat, maar waarbij er een fonds wordt opgericht, ter grootte van zijn erfdeel. Daarmee is de verzorging van je kind goed geregeld en gaat er niet onnodig geld naar de belastingdienst. En je kan ook nog eens zelf bepalen wie het fonds mag gaan beheren.

“Fee” means the financial compensation paid for services rendered, excluding any costs and VAT.

The period during which your mortgage interest rate is fixed, regardless of fluctuations in market interest rates. The options available are generally limited with most mortgage lenders.

Registering a purchase agreement for registered property in the public registers offers the buyer protection against obstacles that could prevent delivery, such as seizures imposed after registration.

The legal costs associated with purchasing a new-build home.

No housing permit is required for living in this house.

Any space with a height of at least 210 cm from the floor.

The purchase of an uninhabited house where the buyer can live there themselves.

G

In the event of the death of someone with a will, if a named heir has already died, their share is combined with that of the other heirs and divided among them. However, if the testator has stipulated the rules of substitution in the will, the predeceased heir's share goes to their children instead of to the other heirs.

A unanimous vote indicates unanimous approval or disapproval of a decision, meaning that everyone involved voted unanimously, or with the same vote. In some cases, a unanimous decision is required, while other decisions require a majority (e.g., two-thirds).

Trusteeship is the management of the assets of someone who is unable to manage their own financial interests. It can also be established when (grand)parents believe it is not yet desirable for (grand)children to manage the assets they have received from an inheritance.

A transfer of ownership without consideration.

Good faith protects a person from ignorance of certain facts or rights. For example, if someone buys a stolen bicycle in good faith, they are protected because they didn't know, and shouldn't have known, that the bicycle was stolen.

A deed of transfer on the condition that the purchase price is not paid.

An official copy of an authentic deed with the same legal force as a court judgment. A memorandum can be used, for example, to seize a property by a bailiff or, in the event of default, to sell the property at auction by a bank.

Tax due on a gift received from a person resident in the Netherlands.

When starting a business, the question arises as to which legal structure is most suitable. Considerations include liability, tax treatment, and image. Private legal entities include associations, cooperatives, mutual guarantee societies, public limited companies (NV), private limited companies (BV), and foundations. Personal partnerships include partnerships, general partnerships (VOF), and limited partnerships (CV).

A general partnership (vof) is an agreement in which two or more (legal) persons collaborate to operate a business and share profits. The vof has separate assets, separate from the personal assets of the partners. Although the vof is not a legal entity, it is generally considered a separate legal entity that can enter into transactions independently. Each partner is jointly and severally liable for the obligations of the vof, meaning that these obligations also apply personally. Creditors of the vof can recover their claims from the personal assets of the partners and have priority over personal creditors.

Guardianship is the responsibility for the care of a minor, including his or her money and property, when both parents have died or lost their parental rights.

H

An "heir" is a person who, according to inheritance law, inherits certain assets upon death. Intestate inheritance determines who the heirs are by law, while testamentary inheritance differs from statutory inheritance.

The law distinguishes between four groups of potential heirs and determines the order in which they are called upon. If there is no longer any family in one group, the estate goes to family in the next group. The groups are as follows:

Group 1: Partner (only: spouse or registered partner) and children

If you are married without children, the surviving spouse inherits the entire estate. If you are not married but have children, the children inherit the entire estate, each with an equal share. If you are married with children, the surviving spouse and the children each inherit an equal share. The statutory division then applies, with the children receiving the inheritance only after the death of both spouses.

A registered partnership is considered equivalent to a marriage, and registered partners are treated as spouses. If the deceased and their spouse are married in full community of property, the surviving spouse is entitled to half of the community property, and each spouse and their children are entitled to an equal share of the estate.

Legally separated spouses do not belong to this group. The same applies to couples in a committed relationship with a cohabitation agreement. They do not inherit from each other, and if one of them dies, the other receives nothing.

Stepchildren do not inherit according to the legal rules of their stepparents, but the stepparent can include in a will that the stepchild is considered as their own child.

Group 2: Parents; siblings

If you have no spouse or children, your parents and your (half) brothers and (half) sisters will inherit. If a brother or sister has died before you, their children will inherit instead.

Group 3: Grandparents; uncles and aunts

If there is no spouse, children, parents, or siblings, grandparents inherit. If they are already deceased, uncles and aunts are eligible. If they are also deceased, their children inherit.

Group 4: Great-grandparents; great-uncles and great-aunts

If there is no family in group 3, the inheritance goes to family in group 4.

If no one in groups 1 through 4 can be traced, the state will hold the estate for twenty years. After that, the estate will revert to the state.

Non-blood relatives, such as sisters-in-law, brothers-in-law, children-in-law and stepchildren, do not inherit according to the law.

"Heir research" is a genealogical investigation carried out by, among others, the notary, the executor and the liquidator to determine who the heirs are and where they are located.

The Housing Guarantee Institute (GIW) was dissolved on January 1, 2010. Woningborg emerged from the GIW as one of the new institutions. The terms and conditions of the GIW Guarantee and Warranty Scheme, as stated on the GIW guarantee certificate, remain valid, including the term and expiration dates.

"Hereditatis petitio" is a legal claim that heirs have and that they can bring against anyone who has possession of assets from the estate without a right.

Hidden defects are defects that are only discovered after the transfer of ownership of a property. Disputes about defects are common in home sales. The seller's liability depends on the nature of the defect. If the defect was visible, the seller is usually not liable because the buyer could have noticed it during the viewing or a building inspection.

According to Article 7:17 of the Dutch Civil Code, a home must possess properties that the buyer could reasonably expect based on the purchase agreement. These properties are necessary for normal use of the home and are not subject to dispute. If a dispute arises regarding these properties, the statements and conduct of both the seller and the buyer, and what they could reasonably expect from each other, are considered.

The seller's warranty that the property is suitable for normal use is interpreted in accordance with common parlance. Important factors include the property's condition, age, statements from the seller or real estate agent, and reports on any defects such as asbestos or soil contamination. The terms of the purchase agreement are therefore crucial for the buyer's expectations regarding normal use.

If the seller is aware of a defect relevant to the buyer and fails to disclose it, they breach their duty to disclose. This duty applies even if the defect is partially visible and the seller knows there is a more serious problem. For example, cracks in the wall could indicate a more serious issue, such as a faulty foundation. In such cases, the seller must be honest and fulfill their duty to disclose, even if this means ignoring the buyer's investigation.

If the seller fails to inform the buyer or provides incorrect information, the seller cannot blame the buyer for not having conducted sufficient investigation. However, sometimes the seller can successfully argue that the buyer did not conduct sufficient investigation, allowing the court to hold the buyer partially liable for the damages. However, this is not common.

Older homes often include an age clause in the purchase agreement. This clause stipulates that the buyer must have lower standards for the home's construction quality than for a new home. This limits the buyer's expectations and partially exempts the seller from liability. However, if the seller is aware of a defect or should have been aware of it, they cannot rely on this clause. In that case, the seller has breached their duty of disclosure and cannot be exempted from liability for the defect.

The seller transfers the property without any special encumbrances or restrictions, unless otherwise agreed between the seller and the buyer. This is stipulated by law. The buyer has no obligation to investigate such encumbrances. Special encumbrances may include, for example, easements on the property, such as right of way. A zoning plan may also restrict the use of the property. If the property was sold for residential purposes, but the zoning plan prohibits this use, this does not fall under special encumbrances or restrictions, according to the Supreme Court.

More than one million homes have been built with a Woningborg certificate, and that's no coincidence, because these certificates offer certainty. Significant risks associated with the construction or renovation of a new-build home or transformation project are covered by a Woningborg certificate.

In addition, the certificate is often required to obtain a mortgage loan and is mandatory when you take out a mortgage with a National Mortgage Guarantee (NHG) for your home.

The certificate offers two forms of protection:

1. During construction, it protects you against the consequences of bankruptcy of your contracting partner.

It provides a safety net in case your contracting party cannot repair construction defects after three months of completion, for whatever reason (e.g., bankruptcy). If your contracting party refuses to repair them, you will also need a ruling from the Arbitration Council, and the repair period stipulated in that ruling must have expired.

Alternative term for building insurance.

The actual expenditure incurred on a home after all deductions, additions, and other costs have been accounted for.

The legal settlement carried out by a court-appointed liquidator (as opposed to an informal settlement, which is usually carried out by the joint heirs).

I

An interest-only mortgage is a mortgage with no mandatory repayments during the loan term. The borrower, mortgagor, or debtor pays only interest to the lender, mortgagee, or bank.

An investment mortgage is a mortgage in which the final capital is built up wholly or partly through investments.

Inheritance tax is a tax levied on gifts and inheritances. The Inheritance Tax Act regulates both inheritance tax on inheritances and gift tax on gifts.

By law, inheritance tax is levied on the value of everything a person receives from the estate of someone who resided in the Netherlands at the time of death, regardless of the testator's nationality. Whether someone receives something as an heir or legatee is irrelevant. In addition, inheritance tax is levied on anything received from a Dutch citizen who dies within ten years of leaving the Netherlands.

The Inheritance Tax Act further expands the civil concept of "acquired by inheritance" to include acquisitions under fictitious inheritance rights. These are acquisitions that, under civil law, are not acquired by inheritance, but are included to prevent tax-saving schemes surrounding inheritances.

"Inheritance law, testamentary inheritance law" is the possibility to deviate from the statutory inheritance law by will.

"Inheritance law, intestate inheritance law" refers to the statutory inheritance law that applies if it has not been deviated from by will.

"Inheritance" is the provision in a will in which the heirs are designated.

Tax is levied on gifts and inheritances. The Inheritance Tax Act regulates both: the levy of inheritance tax on inheritances and the levy of gift tax on gifts.

By law, inheritance tax is levied on the value of everything a person receives "by inheritance" from the estate of someone who resided in the Netherlands at the time of their death. The nationality of the deceased is irrelevant. It also makes no difference whether someone receives something as an heir or legatee. In addition, inheritance tax is levied on anything received from a Dutch citizen who dies within ten years of leaving the Netherlands.

The Inheritance Tax Act further expands the civil concept of "acquired by inheritance" to include acquisitions that, under civil law, are not acquired by inheritance. These are considered fictitious acquisitions. These fictitious acquisitions are included to prevent tax-saving schemes surrounding inheritances. A brief discussion of these fictitious provisions follows.

"Legal incapacity" occurs when a person, normally considered an adult and therefore legally competent, is unable to adequately represent their own interests. Despite being an adult, some people, due to various reasons such as intellectual disability, psychiatric problems, addiction, or dementia, cannot always understand the consequences of their actions and therefore cannot make the right decisions.

When a person in such a situation is placed under guardianship, they are automatically declared legally incapacitated. This means that any legal acts performed without the guardian's permission can be annulled by the guardian.

The assignment of a payment to a specific debt when a creditor and his debtor have multiple obligations to each other.

Taxable income is the portion of income on which income tax is due, after applying all additions and deductions. Only the tax-free allowance is deducted from this amount.

Time frame within which you have the option to decide when you want a (next) fixed interest rate period to commence.

Construction interest: The interest you owe from the moment the purchase contract is signed until the delivery of your new-build home.

Contractual interest rate: The agreed-upon interest rate; the interest rate applicable to a new mortgage at the time of conclusion.

Interest rate guarantee: A mortgage offer in which the offered interest rate is fixed for a certain period, even if the capital market interest rate rises in the meantime.

Interest rate revision: An interest rate proposal made by the bank towards the end of the fixed interest period.

Variable rate: Mortgage interest rate that fluctuates with interest rates on the capital market, usually lower than the interest rate that is fixed for a fixed period.

Fixed-rate term: The period during which your mortgage interest rate is fixed, regardless of fluctuations in the market rate. The options available are generally limited with most mortgage lenders.

Interest rate types: Different types of mortgage interest, such as variable or fixed for a specific period, with or without a cooling-off period for the interest.

Effective interest rate: The actual interest yield for the bank, usually higher than the stated interest rate because it includes closing costs and the timing of interest payments.

The interest you owe from the moment you sign the purchase contract until the delivery of your new-build home.

The agreed interest rate; the interest rate applicable at that time for a new mortgage.

A mortgage offer in which the offered interest rate remains fixed for a certain period, even if the capital market interest rate rises in the meantime.

A proposed interest rate adjustment made by the bank when your fixed interest rate period expires.

Mortgage interest rate that fluctuates with interest rates on the capital market, usually lower than the interest rate that is fixed for a fixed period.

Different types of mortgage interest rates, such as variable or fixed for a specific period, with or without a cooling-off period for the interest rate.

The actual interest yield for the bank, usually higher than the stated interest rate because it also includes closing costs and the timing of interest payments.

The division plan is part of the deed of division and concerns a floor plan on which the numbered apartment rights are indicated and which areas are communal.

The Inheritance Tax Act is the law that regulates gift tax, inheritance tax and the law of transfer.

The statutory law of inheritance, applicable in the absence of a will.

Insurance that protects your home against damage caused by fire, storm, lightning and burglary, for example.

L

Joint and several liability arises when each of the parties involved can be held individually responsible for the entire (mortgage) debt.

When entrepreneurs collaborate, a joint BV structure can be chosen, with each entrepreneur acquiring shares in the BV. An alternative is to enter into a collaboration through a personal partnership, such as a general partnership (VOF), a general partnership (VOF), or a limited partnership (CV). These partnerships are not legal entities but agreements between two or more individuals or legal entities working together.

A limited partnership (CV), also known as a partnership by way of financing, consists of a general partner and limited or silent partners, with the latter only contributing capital. The general partner represents the CV externally and is personally and jointly liable for its debts. The silent partner is only liable up to the amount they have contributed to the CV, with some exceptions.

A term used synonymously with mortgage lender or mortgage financer.

The Land Registry is responsible for registering ownership rights to all real estate, including land and buildings, in the Netherlands. Their statutory duties include maintaining public registers and updating the Key Register of Land Registry and Key Register of Topography. They also maintain the coordinates in the landscape, known as the National Triangulation System. All registered data is publicly accessible.

Above ground, the Land Registry records information about homes, ships, aircraft, plots of land, and roads. Underground, they do the same for cable and pipeline networks.

In addition to its registration role, the Land Registry also manages various services provided by other organizations, known as National Services. These include the WOZ National Service and the Basic Registration of Addresses and Buildings (BAG), which lists all addresses and buildings in the Netherlands, including information such as year of construction, surface area, purpose of use, and location on the map.

The Land Registry's data supports private individuals, companies and (semi)governmental organisations in making important decisions.

A legacy is a testamentary disposition in which a person, the testator, leaves a specific asset or sum of money from their estate to a specific person or party. The recipient of this specific asset or sum of money is called the legatee. The legatee has the right to claim this legacy from the heirs of the estate, but has no further claim to the other assets of the estate.

It is possible to disinherit a person. However, children are always entitled to a specific portion of the estate's value, known as the statutory portion, also known as the child's share. This minimum portion of the estate is always half of what they would inherit as heirs upon intestacy—in the absence of a will. Suppose the deceased leaves behind a spouse and three children, then the value of the statutory portion is 1/8th of the estate (half of 1/4).

When a disinherited child claims their statutory portion, they do not automatically become a co-heir. They do not receive a share in all the assets and debts of the estate. The disinherited child merely receives a monetary claim against the heirs. This prevents the disinherited child from obstructing the settlement of the estate by obstructing it as an heir. This used to be different: by claiming their statutory portion, the disinherited child became a co-heir, and the cooperation of the other heirs was required in the settlement and distribution of the estate, which often caused problems.

The right to claim the statutory portion expires five years after the inheritance. The child, the legitimate heir, can claim the statutory portion starting six months after the parent's death. The child must claim the statutory portion themselves. It is possible to stipulate in a will—with a non-claimability clause—that the statutory portion, insofar as it is payable by the spouse, is only claimable upon the death of the surviving spouse.

Disinherited spouse and legal rights
A spouse can also be disinherited, but is not entitled to a statutory share. However, by marrying in community of property, the disinherited spouse still has some other legal rights. If there is no community of property, the disinherited spouse can invoke some other legal rights.

Continued use of the home and furnishings
The disinherited spouse is entitled to continued use of the home and its contents for six months after the death, provided the home is part of the estate. This means the surviving spouse does not have to vacate the home immediately. A right of usufruct on the home and its contents can be established for the subsequent period. The other heirs are then obligated to cooperate and may not sell the home. The heirs can petition the subdistrict court to revoke the usufruct or to release them from the obligation to establish it. The subdistrict court will then assess whether the surviving spouse truly needs the usufruct of the home and its contents.

Gifts made during the heir's lifetime are part of the so-called legitimate estate, the fictitious assets on which the statutory portion is calculated. This also applies to gifts made with exemption from contribution.

To calculate the amount of the statutory portion, insight into the composition of the estate must be obtained. If the heirs refuse to provide insight or if there is doubt about the accuracy of the information, legal proceedings may be necessary.

The statutory portion is the total value of the estate, including assets and capital, minus certain debts and gifts taken into account according to legal regulations. This forms the basis for calculating the statutory portion that certain heirs can claim.

This refers to a type of mortgage where no principal payments are made during the mortgage term. Instead, the entire loan amount is repaid at the end of the term with the proceeds from a life insurance policy linked to the mortgage.

Accidents can happen easily. Sometimes they have serious consequences. Illness happens to us all. One in five Dutch people will develop dementia. Based on demographic trends, the absolute number of people with dementia will increase by 115% by 2040. And we all know someone in our circle who has suffered a completely unexpected, serious accident. Prince Friso's terrible skiing accident, for example, had a profound impact on us all.

What happens from a legal perspective if, due to an accident or illness, you are unexpectedly unable to exercise your will? What happens next? Imagine this. You have a serious accident and fall into a coma. It could happen to any of us.

If that happens, your loved ones will have to go to court. They will appoint a guardian. We don't know in advance who that will be. But that guardian will take the helm and be in charge. They will determine how much money will be spent on your care. And if the house needs to be sold, for example, because you won't be returning there, or because your loved ones want to downsize, or because they prefer to live closer to your care home, or perhaps just want and need to move on with life. Keep in mind that they can't sell your house, because they don't have the authority to manage your affairs. That's the guardian. And they also have to account for their actions to the court. And that guardian usually doesn't work for free. They have to be paid.

In the past, you were doubly screwed. You suffered that serious illness or that terrible accident, but you were also sucked into that horrific guardianship arrangement. Not so long ago, our legislators recognized this and took action. Now you can take charge yourself in case disaster strikes you unexpectedly. You can grant power of attorney to a trusted person. We also call this a living will. A bit of an odd name, because nobody dies. But you can grant power of attorney in a notarial deed to your spouse, your partner, a family member, a friend, a combination of them, or to whomever you choose. And that person or they can then represent you. In the manner you specify. And that way, you keep an unknown, possibly idiosyncratic, and expensive guardian at bay. This authorized representative(s) can represent you with regard to all your financial affairs, but also for medical matters and all sorts of practical and personal matters.

Financial matters include banking, asset management, and tax matters. They also include the sale of your home, should that become necessary. Medical matters may involve deciding whether or not to receive medical treatment or resuscitation. Personal wishes may pertain to personal care, funeral arrangements, social contacts, and managing your social media profiles, to name just a few.

According to the Royal Dutch Association of Civil-Law Notaries, more than 1.3 million people in the Netherlands (2021) have already made such a living will. Demand is therefore high. Yet, we still regularly encounter people who have never heard of a living will and therefore haven't considered what happens if something goes wrong. But there are also those who are aware of it, but for their own reasons choose not to make one. For example, because they were born to be lucky, are lucky, and are convinced they will be spared an accident or illness. And that's certainly possible. But sadly, we see too many and too often that people haven't arranged it, with all the sad and painful consequences that entails.

By having us draw up your living will, you ensure that the banks recognize it and that your trusted advisor can manage your affairs for you. The date is also fixed, the deed cannot be lost, and we can, if desired, submit the living will to the Central Register of Living Wills. The content of the living will is not visible and remains confidential, but it can be verified that a living will has been drawn up.

It's not just older people who fear Alzheimer's who make a living will. We also see many young people. Singles. Young couples. Without children. With children. People in the prime of their lives; without increased health risks. Because they want things arranged. Not so much for themselves, but for the ones they care about. Making a living will is therefore an expression of love.

Life insurance is an insurance policy in which the policyholder pays periodic premiums to the insurer, who, upon the death of the insured or at the end of the term, makes a pre-agreed payment to the beneficiary(ies).

The surrender value is the amount an insured person receives if they decide to terminate a life insurance policy early. This amount may be less than the total premiums paid, as fees and any penalties may be deducted.

This refers to the judicial settlement of an estate after all heirs have accepted the inheritance under benefit of inventory. This involves an exemption from certain obligations that apply to a court-appointed liquidator.

A linear mortgage is a type of mortgage in which a fixed amount is repaid annually over the term of the mortgage. This gradually reduces the outstanding debt, which also reduces the interest payments proportionally.

An estate includes all the assets and debts that a person leaves behind after his or her death.

A leasehold right is the right to use a piece of land owned by another person, usually in the case of municipal leasehold, where the owner is the municipality.

Legal entities are entities that can independently participate in legal transactions. Dutch law distinguishes two main types of legal entities:

  1. Natural persons: These are individual people who naturally have rights and obligations and can participate independently in the legal domain.
  2. Legal entities: Entities such as organizations require a legal structure to participate independently in legal transactions. This legal structure is called a legal entity. Once entities or groups of people are established as legal entities, they can participate in legal transactions as full-fledged and legally capable individuals. A legal entity, like a natural person, can own assets and liabilities, enter into contracts, initiate legal proceedings, and be sued.

Different types of legal entities are distinguished by law:

  • Public law legal entities, such as the state, provinces and municipalities.
  • Religious communities and their independent parts and bodies.
  • Private legal entities, which are divided into six types: associations, cooperatives, mutual guarantee societies, public limited companies, private limited liability companies and foundations.

To be eligible for legal liability, a legal entity must have its own identity that meets certain legal requirements, such as a name, legal form, and registered office. When establishing a legal entity, articles of association must also be drawn up, which contain the rules by which the entity is governed. The articles of association determine the internal and external functioning of the legal entity and generally include the purpose of the entity, which often determines the choice of legal form. For example, foundations and associations are suitable for charitable and social purposes, while cooperatives are suitable for commercial activities.

Representation of a legal entity is carried out by one or more directors, as the legal entity itself cannot perform legal acts. These directors act on behalf of the legal entity and represent it in legal matters. The signature of a director is considered that of the legal entity.

Although legal entities, like natural persons, are liable for their actions, they have separate assets. This means that directors are only responsible for the legal entity and are not personally liable for any shortcomings or debts of the entity. However, in the event of culpable mismanagement, directors can be held personally liable. Generally, the legal entity is responsible for its own obligations.

A legal advisor is a person with legal training or knowledge who is a member of the Dutch Association of Legal Advisors (NVRA), founded in 1928.

Testament.

The joint heirs after beneficiary acceptance or the court-appointed liquidator; both have the primary goal of paying the estate's debts, with the aim of winding up the estate.

In the event that a deceased person leaves behind a spouse and children, the statutory distribution as established by law applies: the surviving spouse receives the entire estate, with the obligation to assume the estate's debts. This gives the surviving spouse full power of disposition over the estate. However, this distribution leads to a situation in which the surviving spouse receives more than they are entitled to, as they receive everything while they are only entitled to their legal share, which—as discussed earlier—depends on the number of children.

As a result, the surviving spouse is over-endowed, resulting in a debt owed by the surviving spouse to the children, also known as an over-endowment debt. In turn, the children have a non-demandable (interest-bearing or non-interest-bearing) claim against the surviving parent equal to their share of the inheritance. This claim only becomes due upon the death, remarriage, or bankruptcy of the surviving spouse. Until then, the children have no access to their inheritance, allowing the surviving parent to continue living in the home and use the estate's money for daily expenses.

The difference between the old and new inheritance law is noticeable. Since the introduction of the new inheritance law on January 1, 2003, the statutory division has been in effect, ensuring that the surviving spouse or registered partner receives better financial support. Moreover, the current inheritance law limits the rights of children, unlike the old inheritance law, which entitles children to their inheritance immediately after death. This could, in some cases, lead to financial problems for the surviving spouse or registered partner.

M

A management clause is the act whereby a mortgagee assumes the management of a registered property of a mortgagor, if the mortgagor fails to fulfil his obligations towards the mortgagee.

"Principal division" includes the apartment rights that will be further subdivided later. In a subdivision of apartment rights, a single apartment right is divided into multiple apartment rights.

A mortgage where only interest is due, with no repayment obligation.

Notarial agreement in which the rights and obligations of both the mortgagor and the mortgagee are laid down.

A mortgage type in which a fixed amount is paid each month for interest and principal. Initially, the interest portion is higher than the principal portion, but over time, this ratio reverses.

The part of the mortgage to which the basic interest rate applies.

A mortgage in which the final capital is formed wholly or partly by investment income.

For social housing, the bank divides the mortgage into two parts: one part financed by the buyer's own contribution and one part repaid by the annual government premium.

A mortgage type in which a fixed amount is repaid annually. As the term progresses, the outstanding debt gradually decreases, which also reduces the interest expense proportionally.

The option to use the new home as collateral for the existing mortgage when moving.

A type of mortgage in which no repayments are made during the term, but savings are made for a final payment with which the mortgage debt is repaid in one go at the end of the term.

A mortgage that provides financing up to a fixed percentage of the property's foreclosure value, typically based on the base rate. If income and the property's value allow, a higher percentage can be obtained, known as a top-up mortgage.

The homeowner who uses his home as collateral when obtaining a mortgage loan.

The bank or lender that provides a mortgage loan to a homeowner, using the home as collateral.

Signing the mortgage offer means entering into the loan agreement with the bank. In some cases, this can still be revoked before the mortgage deed is executed by the notary.

The public register at the land registry in which all mortgages are recorded.

Another name for mortgagee or mortgage financier.

Mediation is a voluntary form of conflict resolution in which a neutral mediation expert, the mediator, guides communication and negotiations between parties to arrive at a mutually agreed-upon and optimal decision based on their actual interests.

An overview of all components of the building and when they are due for maintenance. The long-term maintenance plan also indicates the approximate cost of this maintenance. An long-term maintenance plan ensures accurate financial budgeting and prevents homeowners' association members from having to pay extra for maintenance.

If a person is no longer able to care for themselves for various reasons, the subdistrict court judge can appoint an advocate. This advocate can take the form of a guardian, administrator, or mentor.

In mentorship, the mentor's care focuses exclusively on personal decisions, while the individual involved retains full legal capacity. The mentor makes decisions regarding the care, nursing, treatment, or guidance of the individual.

The purpose of establishing a guardianship is to prevent others from taking advantage of a person's vulnerable position. This can happen, for example, when someone, due to their mental or physical condition, is unable or limited to adequately managing their non-financial interests.

Guardianship can often be requested from the court, either by the person themselves or by their partner or a family member.

The original signed copy of an authentic deed, which is kept by the notary in his safe as proof of the legal transaction.

The principle that a notary is authorized and obligated to perform assigned duties, unless this is contrary to law, public order, or the purpose or consequence of the act is manifestly unlawful.

A set of standard articles used by the notary when drafting the deed of division and the division regulations for apartment buildings. These model regulations are published by the Royal Dutch Association of Civil-Law Notaries and are updated to reflect changing legislation and practical situations.

A building or object that is at least fifty years old and is registered in the National Register of Monuments because it is considered to be of national importance due to its cultural-historical value, architectural beauty, or rarity.

Minutes are a record of a meeting that records all decisions taken. They must be prepared in accordance with the regulations in the articles of association.

All matters that are not immovable.

The municipal right of first refusal is a law that sometimes imposes an obligation on the seller to offer a registered property to the municipality first.

N

A notice is a written notification from the municipality to the owner (or the Owners' Association) stating that they are obligated to take measures on the building. These measures are intended to repair deferred maintenance or ensure that the building complies with specific building regulations.

A notice of default is a written reminder to a party in default, such as a defaulter, a seller who fails to deliver, or a buyer who fails to take delivery. The purpose of a notice of default is to give the party one last chance to fulfill its obligations. This notice of default must be in writing.

When drafting a formal notice letter, it's important to use a formal style, as with any other formal letter. The following points should be included:

  • Description of the agreements: Explain the agreements made between both parties clearly and specifically. If possible, use supporting documents such as contracts, email correspondence, letters, etc., and provide precise dates.
  • Description of the breach: Identify the part of the agreement the debtor has failed to fulfill. Be as specific as possible in describing the breach.
  • Compliance deadline: Specify the deadline within which the debtor must still fulfill their obligations. Provide a clear ultimatum, ensuring it is reasonable and achievable. A common deadline, for example, is two weeks.
  • Send the letter by registered mail: To have proof that the debtor has received and read the letter, it is advisable to send the letter by registered mail.

If the other party has still not fulfilled its obligations after receipt of the notice of default, it will be deemed to be in default.

With the National Mortgage Guarantee (NHG), you offer your lender the assurance that your mortgage debt will be repaid in certain situations. If you can no longer afford the mortgage due to reasons such as divorce, unemployment, loss of income, disability, or the death of your partner, the NHG will intervene. The NHG aims to keep you in your home. If this isn't possible, the NHG can, under certain conditions, take over the remaining debt. In exchange for this guarantee, you pay a lower mortgage interest rate, but with one-time costs.

You can apply for a mortgage with NHG through your lender or broker. They will assess whether you meet all the requirements of the National Mortgage Guarantee Foundation (the foundation behind the NHG).

In short

  • Get a discount on your mortgage interest.
  • If you have to sell the home through no fault of your own, and it yields less than the mortgage, in most cases the remaining debt will be forgiven.
  • Finance sustainability measures up to 106% of the property value.
  • Increase your existing mortgage for a renovation, for example.
  • Many options when your situation changes.

The benefits of NHG

  • With a mortgage with NHG, you can be sure it matches your income. Because you never borrow too much, you'll have enough left over for other expenses.
  • Is your relationship breaking up, your partner dying, or something else happening in your life that makes it impossible for you to pay your mortgage? With NHG (National Mortgage Guarantee), you can rely on a safety net.
  • Lenders reward the additional security of NHG by charging a lower mortgage interest rate.
  • A mortgage with NHG is also a responsible option for seniors, starters and entrepreneurs.
  • It is also possible to take out a mortgage with NHG without a permanent contract.
  • Include the costs of sustainability measures directly in your mortgage.
  • A mortgage with NHG is also possible for a renovation.
  • Are you selling your home at a loss? Under certain conditions, the remaining debt can be forgiven. You no longer have to pay the remaining debt.

NB

  1. To qualify for a NHG loan, the purchase price or market value of the home must not exceed €435,000. If you include energy-saving features, this amount is €461,100.
  2. Your income determines the maximum amount you can borrow. But how you earn this amount is also important. Are you a temporary worker, an entrepreneur, or do you have a permanent contract? The Income Selection Tool will quickly help you determine how your income is calculated for a mortgage in your situation.
  3. Check if you qualify for a Starter Loan. Many municipalities want to offer new homeowners additional opportunities with this. With a Starter Loan, you can borrow an additional amount on top of your maximum mortgage with National Mortgage Guarantee (NHG). This means you temporarily don't have to pay interest and principal on this amount. Starter Loans are provided by the Stimuleringsfonds Volkshuisvesting (SVn) .
  4. If you already know if you want to make your home more sustainable, include the financing directly in your mortgage. You can borrow some extra for this. Not sure yet how you want to approach sustainability? No problem, with the Energy Savings Budget, you'll have money ready to use later.
  5. Get good advice from a mortgage advisor. They know everything about mortgages and NHG (National Mortgage Guarantee). And if they don't mention it, ask about it yourself!

An individual is an autonomous entity with rights and obligations that participates in legal transactions.

Net housing costs are the actual expenses for a house after deducting all additions, deductions and other costs.

An item is considered non-conforming if it does not meet the characteristics the buyer could reasonably expect based on the purchase agreement. If this is the case, the buyer can invoke non-conformity. However, this is not possible if the buyer knew or could have known that the item did not meet the agreement. In the event of non-conformity, the buyer must notify the seller in writing within two months of discovering it. If the seller fails to meet its obligations, the buyer is entitled to a price reduction or termination of the purchase agreement.

The purchase agreement outlines what the buyer can reasonably expect from the property. If any doubt arises about these characteristics, the statements and actions of both the seller and the buyer, and what they can reasonably expect from each other, are considered. The provision that the property is suitable for normal use is a guarantee from the seller. Common usage is used to define normal use. The construction, utilities, and soil conditions must be safe; otherwise, there is non-conformity.

When you decide to start a business, there comes a time when you'll wonder which legal structure is most suitable. Will you choose a sole proprietorship, a legal entity, or will you collaborate with others in a partnership? Important considerations include liability, tax treatment, and image. Private legal entities include associations, cooperatives, mutual insurance companies, public limited companies (NV), private limited companies (BV), and foundations. Partnerships include partnerships, general partnerships (VOF), and limited partnerships (CV).

A public limited company (NV) is a specific type of legal entity in which the share capital is divided into transferable shares. The term "naamloze" (public limited company) indicates that an NV is not required to maintain a shareholder register, meaning that shareholders can, in principle, remain anonymous.

A shareholder of a public limited company cannot be held personally liable for actions performed on behalf of the company. Furthermore, the shareholder is not obligated to contribute to the company's losses unless this exceeds the amount required to be paid into their share.

When setting up a public limited company, several important requirements apply:

  • Incorporation takes place through a civil-law notary, who draws up the notarial deed containing the articles of association.
  • At least €45,000 must be paid into the company.
  • The deed must be signed by each founder and by anyone who, according to the deed, acquires one or more shares.

The advantages of a limited company include:

  • Possibility to set up with multiple people, but also alone.
  • Freely transferable shares.
  • Limited liability for shareholders.
  • Ability to hire staff.
  • Flexibility regarding the number of drivers.
  • Tax benefits.
  • Social security insurance under certain conditions.

The disadvantages of a limited company include:

  • High tax burden with low profits.
  • Requires minimum starting capital of €45,000.
  • No entitlement to certain tax benefits such as self-employed persons' deduction and SME exemption.

A private limited company (BV) and a public limited company (NV) share similarities, but also differ in several respects. For example, the required starting capital is significantly different: a minimum of €45,000 is required for an NV, while for a BV this can theoretically be as little as one euro cent. Another difference concerns the tradability of shares: shares in a BV are registered and not freely tradable, while shares in an NV are freely transferable.

The period between sending the invitation and holding a meeting must be respected. Failure to comply with this period will result in improper organization of the meeting and will render the decisions taken voidable.

O

Civil-law notaries are bound by professional secrecy, meaning that all confidential information they receive during their professional practice is protected. This confidentiality applies to all services provided by civil-law notaries, regardless of whether a notarial deed is executed in the course of these services. Civil-law notaries are not permitted to disclose this confidential information in legal proceedings. They have the right to refuse to testify before a court if this would lead to the disclosure of confidential information; this is known as their right to refuse to testify.

Encumbrances refer to the imposition of a limited right on immovable property, such as a mortgage.

A decision is a written decision taken by an administrative body.

The person who, in a two-step bequest, receives an inheritance on the condition that upon his death, this inheritance, or what remains of it, will go to a specifically designated person.

When the seller grants you an option (right to purchase), he undertakes not to offer the house to others for a specific period.

An assignment to an estate agent to find a house, where the assignment can be limited in both time and location.

Het ouderlijk vruchtgenot geeft ouders recht op de opbrengsten uit het vermogen van hun minderjarige kind. Het vermogen komt meestal uit een erfenis of een schenking. Denk bij opbrengsten aan rente, dividend of huurinkomsten. In dat laatste geval is de minderjarige (mede-)eigenaar van een verhuurd pand. De ouders mogen zelf weten wat ze met de opbrengsten doen. 

Each family branch, for example a brother with his children forms one branch, while a sister with her children forms another branch.

Sums at once

Funds to which minor children, and sometimes adult children, can claim under certain conditions; these can be found in Section 2 of Title 3 of Book 4 of the Civil Code.

Articles of association

Articles of Association are rules and fundamental provisions that form the foundation of an organization. The articles of association must be recorded by a notary. The notary draws up a deed of incorporation containing the articles of association. The articles of association are then filed with the Chamber of Commerce. The content of the articles of association varies depending on the legal entity, i.e., the chosen legal form. The articles of association of various legal entities contain, among other things:

Founding
- Name of the foundation
- Place of establishment
- Purpose of the foundation
- Procedure for appointment and dismissal of directors
- Destination of the assets upon dissolution of the foundation

Association
- Name of the association
- Place of establishment
- Purpose of the association
- Obligations of the members towards the association
- Procedure for convening the General Meeting of Members
- Destination of the association's equity upon termination

BV and NV
- Name
- Place of establishment
- Description of the activities
- Goal
- Social capital
- Procedure for appointing directors
- Powers of different bodies and meeting procedures
- Transfer of shares

The automatic association that arises between apartment owners when a building is divided into apartments.

P

The right to dispose of property refers to the right to freely dispose of it. It is only possible to transfer rights to property to another person if one has the right to dispose of it.

A BV, short for "Besloten Vennootschap" (private limited company), is a legal entity that independently holds rights and obligations. This type of company has one or more shareholders and is managed by one or more directors, with you potentially acting as a managing director/majority shareholder (DGA). A key advantage of a BV is its limited liability; in the event of bankruptcy, your personal assets (such as your car, house, and savings) are generally protected. An exception to this is in cases of improper management or mismanagement, in which case liability may be incurred. A key advantage of a BV is the ability to sell the company by transferring its shares, without the need to transfer all assets and liabilities separately.

A private limited company (BV) is subject to corporate income tax and, where applicable, dividend tax. As the managing director of a BV, you also pay income tax on your minimum taxable income and dividends received. While a BV has a slightly lower tax burden than, for example, a sole proprietorship, it does entail higher costs, such as annual report obligations and accounting fees. Generally, operating a business as a BV becomes financially attractive when profits reach around €150,000.

"Proof of ownership" is a copy of the deed of transfer, certified by the land registry, which the buyer receives from the notary after the transfer.

The transfer of a property requires a notarial deed of transfer, followed by registration in the Land Registry. Transfer takes place based on the purchase agreement, recorded in a written purchase contract. Although the purchase contract is often referred to as a "provisional purchase contract," this term is misleading because the contract becomes binding after the statutory cooling-off period. It is therefore wise to include contingencies in the purchase contract, for example, regarding financing, building inspections, a residence permit, and obtaining a National Mortgage Guarantee, to maintain the option of cancellation.

A sales agreement is a contract in which the seller agrees to deliver an item to the buyer in exchange for a fixed price. These agreements can take various forms, including those for movable property (e.g., a laptop) and immovable property (e.g., a house).

What should be included in a home purchase agreement?

Specific rules apply to the purchase of real estate. Some important information that must be included in a purchase agreement for a property is:

  • Personal data of the seller(s) and spouse/partner (if applicable)
  • Personal data of the buyer(s) and spouse/partner (if applicable)
  • Marital status of buyer(s) and seller(s)
  • Identification documents
  • Property description (address, purchase price, surface area, assessed value)
  • Description of any leasehold (address, surface area, conditions, leasehold fee)
  • Transfer tax
  • Payment arrangement for the purchase price, costs and taxes
  • Transfer of ownership
  • Bank guarantee or deposit
  • Condition of the property
  • Representations and Warranties
  • Actual delivery and transfer of rights
  • Ongoing costs, charges and canon
  • Liability of both parties
  • Transfer of risk and damage due to force majeure
  • Notice of default and termination of the agreement
  • Energy label
  • Establishment of domicile
  • Registration of the purchase agreement
  • Identity of the parties involved
  • Any conditions of cancellation
  • Statutory cooling-off period
  • Written recording of agreements
  • Applicability of Dutch law
  • Any additional agreements
  • Signatures of seller(s) and buyer(s) including date of signing

Buying a home involves significant financial transactions. Therefore, it's crucial that you have proper guidance from a notary.

This is an amount the employer withholds from an employee's wages as an advance payment for income tax. This is also called payroll tax.

When you start a business, there comes a time when you have to decide which legal structure suits you best. Will you choose a sole proprietorship, a legal entity, or will you partner with others? Important considerations include liability, tax treatment, and image. There are various private law legal entities, such as associations, cooperatives, public limited companies (NV), private limited companies (BV), and foundations. There are also personal partnerships, including partnerships, general partnerships (VOF), and limited partnerships (CV).

A partnership is an agreement in which two or more individuals or legal entities collaborate within a specific profession, such as a lawyer, accountant, dentist, or medical specialist, with the aim of sharing mutually acquired benefits. They contribute money, goods, labor, and/or goodwill. In a partnership, each partner is equally liable for the partnership's debts, with partnership assets primarily intended for business creditors.

The agreements between partners are recorded in a partnership contract, which is not mandatory but strongly recommended. This contract includes, among other things:

  • The identity of the partners and their contribution
  • The distribution of profits, usually based on the contribution unless otherwise agreed
  • The division of powers

Advantages of a partnership include:

  • Easy to set up
  • No start-up capital required
  • Benefit from each other's input
  • Ability to hire staff
  • Tax advantage
  • Entitlement to AOW upon retirement

Disadvantages of a partnership include:

  • Compliance with the agreements made with other sizes is mandatory
  • Private assets are partly liable, including that of the partner without a prenuptial agreement

A deed drawn up without notarial intervention.

A parenting plan is an official document in which separating parents record in writing the agreements regarding the upbringing and care of their children. This plan is legally required and covers three main topics:

  • The division of care and parenting responsibilities, including arrangements for the children's residence, daily care tasks, visitation arrangements, involvement in school, leisure activities, holidays, and medical care.
  • The way in which ex-partners inform and consult each other regarding the children.
  • The costs of upbringing and care, including child support.

A parenting plan must be submitted for every divorce petition involving minor children. This applies to both joint petitions from both parents and unilateral petitions from one parent. If the parenting plan is not submitted, the judge will request it or ask both parents questions during the hearing.

A testamentary arrangement dating from before January 1, 2003, stipulating that all assets and debts of the deceased spouse are allocated to the surviving spouse, while the children acquire a claim on the surviving spouse.

A private deed is created when an agreement is drawn up between the parties without the intervention of a notary. However, if the agreement is drawn up by a notary or other authorized official according to established rules (and co-signed), it is called an authentic deed.

An old testamentary system from before January 1, 2003, in which all assets and debts of the deceased spouse are assigned to the surviving spouse, while the children have a claim on the surviving spouse.

The legal right and duty of parents to care for, educate, and legally represent their minor children.

A civil-law notary is typically a sworn professional charged with representing the interests of all parties. Their primary task is to draw up authentic deeds, which are legally required to be recorded by a civil-law notary, or deeds that the parties involved believe should be formally recorded in a legally correct manner. The civil-law notary must be independent and impartial and must represent the interests of all parties involved with complete independence. A party civil-law notary, on the other hand, represents only the interests of one party in a transaction and must disclose this in advance to all parties involved. Failure to comply with this requirement can result in disciplinary consequences due to a failure to maintain the required independence.

Notaries are primarily involved in business transactions, such as the purchase or sale of a company, where they advise on the best legal structures for the transaction.

Since January 1, 1998, unmarried cohabitants can officially register as partners, which gives them practically the same rights as married couples.

A formal act of signing a deed in the presence of a notary.

A periodic, level payment received by a person after terminating office due to reaching a certain age or disability, provided that a specific premium has been paid during the term of office.

PEP

PEP stands for "Politically Exposed Person".

A person is considered a politically exposed person if he or she performs one or more of the following functions:

  • Head of state, head of government, minister, deputy minister or secretary of state.
  • Member of Parliament or similar legislative body.
  • Board member of a political party.
  • Member of a supreme court, constitutional court or other high judicial body which gives judgments from which, except in exceptional circumstances, no appeal lies.
  • Member of an audit office or a board of directors of a central bank.
  • Ambassador, chargé d'affaires or high-ranking officer of the armed forces.
  • Director, deputy director, member of the board of directors or a similar position in a state-owned enterprise.
  • Director, deputy director, member of the board of directors or holding a similar position in an international organisation.

A person is considered a relative of a politically exposed person if:

  • He or she is the spouse or registered partner of a politically exposed person, or a person considered equivalent to the spouse of a politically exposed person (for example, a person who lives with a politically exposed person).
  • He or she is the child of a politically exposed person.
  • He or she is the spouse or registered partner of a child of a politically exposed person, or a person regarded as an equal to that child's spouse (for example, a person who lives with that child).
  • He or she is a parent of a politically exposed person.
  • A person is considered to be a known close associate of a politically exposed person if:
  • He or she is a person who is known to be the ultimate beneficial owner of a legal entity or legal arrangement together with a politically exposed person, or who has close business relations with a politically exposed person.
  • He or she is the sole beneficial owner of a legal entity or legal arrangement set up for the de facto benefit of a politically exposed person.

PEP statement

A statement confirming that the signatory, at the time of signing the statement, or in the year preceding the date of signing the statement:
a. whether or not you are (or have been) a politically exposed person; and/or
b. whether or not you are (or have been) a relative of a politically prominent person; and/or
c. whether or not you are (or have been) a person known as a close associate of a politically exposed person.

Land with buildings on it that is officially registered with the land registry.

Maintenance performed to prevent possible future defects.

Documentation such as deeds, notarial statements, registers, transcripts, directories, and card systems that fall under the responsibility of the notary.

Unconditional acceptance of an inheritance; this means that one agrees unreservedly to the rights and obligations of the deceased, which also means that one can be held liable with one's personal assets for debts exceeding the size of the estate.

Q

Certain decisions require more than a simple majority. This is called a qualified majority, for example, a two-thirds or three-quarters majority.

The quasi-statutory division (hereinafter: 'QWV') is a testamentary variant of the statutory division (Article 4:13 of the Dutch Civil Code). The period for reversing the statutory division, namely three months from the moment the estate is opened (Article 4:18 of the Dutch Civil Code), is considered very short in practice. During this period, the surviving spouse is usually still grieving and coping. For this reason, the QWV was introduced into practice.

Under the QWV, the statutory division is declared inapplicable. Both the surviving spouse and the children, who have been appointed as heirs, are in an undivided situation upon the opening of the estate. The surviving spouse is then given the authority or obligation in the will, through administration of settlement, appointment of executors, and/or testamentary mandate, to effect a division in accordance with the statutory division. Unlike the statutory division, this division does not take effect automatically. Separate transfers of title must still take place.

A quorum is the minimum number of votes present at a meeting required for valid decisions to be made. Decisions taken at a meeting with less than the quorum are null and void. Tie votes are counted towards the quorum.

R

Relatives by marriage are your partner's family members, such as (grand)parents, uncles, aunts, brothers, and sisters. They are also called in-laws, or informally, "the cold side."

If you terminate a life insurance policy early, you will receive the payout of the surrender value.

Redemption refers to the repayment of the mortgage debt, either in full or in part. The term can also be used to refer to a single installment of repayment.

Penalty-free repayment refers to the option to make additional repayments beyond the contractual obligation, without incurring additional costs. This is often limited to, for example, 10% or 20% of the total loan amount per year.

The person charged with the management of another person's property.

A registered partnership is a legally regulated form of cohabitation, similar to marriage. It offers people the opportunity to formalize their emotional relationship without opting for marriage. The legal consequences of entering into a registered partnership are broadly similar to those of marriage. However, a key difference lies in the relationship with children. A child born within a marriage or registered partnership between a man and a woman, or between two women, automatically has both partners as parents. This does not apply to a marriage between two men. In all these cases, family law relationships between the child and the mother's or father's partner can only be established through recognition and adoption.

The registered partnership is recognized internationally, but not in all countries.

A registered partnership gives both partners rights and obligations towards each other. It can be terminated without judicial intervention.

To enter into a registered partnership, a number of conditions must be met:

  • Both partners must be 18 years of age or older.
  • Neither partner may already be married or in a registered partnership.
  • Persons who are related to each other, such as parents and children, grandparents and grandchildren, and brothers and sisters, are not allowed to enter into a registered partnership.
  • If one of the partners is under guardianship, permission from the guardian or the subdistrict court judge is required.

    By law, partners in a registered partnership automatically have rights and obligations towards each other and towards others. Some of these rights and obligations include:
  • The use of each other's surnames, except on official documents such as passports and driver's licenses.
  • The right not to have to testify against one's partner in a legal case.
  • Partner consent is required for certain actions, such as buying or selling a house.
  • Maintenance obligation towards each other.
  • Legal heirship.
  • Rights to pension plans.

The partnership can be terminated either out of court or through the courts. If there are minor children or the partners disagree, the dissolution must be done through the courts.

For termination without court intervention, a notary is required. An agreement is drawn up in which both partners declare their intention to end the partnership, including agreements on alimony and pension. If there are minor children or if the partners cannot reach an agreement, the procedure begins with a petition to the court, in which a parenting plan is submitted. The further procedure is similar to that of a divorce.

The termination agreement or termination order will be registered in the civil registry within three months, after which the partnership will be formally terminated. For more information about the conditions for partnership and its international recognition, please contact us.

"Rebuilding value" refers to the cost of completely rebuilding a building after it has been completely destroyed by an event such as fire. This value is crucial for building insurance, as it covers rebuilding costs. It's essential that the estimated rebuilding value is realistic. If this value is underestimated, the insurance company may not be able to pay the full amount needed to rebuild the building in the event of a total loss. Therefore, it's always recommended to have the rebuilding value appraised.

A "lease clause" is a provision for the benefit of the mortgagee that prevents the rental of a registered property from taking place without the mortgagee's consent.

A real estate agent who acts on behalf of and for the account of others, with the aim of concluding agreements concerning the purchase, sale, rental or leasing of real estate.

Real estate includes land, unmined minerals, plantings attached to the land, as well as buildings and structures permanently connected to the land, either directly or through attachment to other buildings or structures. Movable property includes all items not considered immovable.

A building or structure is considered immovable when it is permanently connected to the ground. This definition encompasses two essential characteristics:

  1. The matter must be connected to the land, which is judged on the basis of common views in society; and
  2. The connection must be durable.

When assessing the sustainable connection with the ground, the following aspects are important:

  • Is the matter intended by nature and design to remain at the location permanently;
  • When assessing this, the builder's intention is taken into account, insofar as this is publicly known;
  • The intention to keep the business at the location permanently must be made known externally;
  • The common views in society cannot by themselves be used to determine whether a thing is movable or immovable.

Real estate tax (OZB) is a tax levied by the municipality on residents and homeowners. The amount depends on the assessed value of the property. In addition to the user's portion, the owner also pays the owner's portion.

A mortgagee's power of execution allows them to proceed with the public sale of a registered property if the mortgagor/debtor fails to meet their obligations.

Inheritance and gift tax is due on the transfer of certain domestic assets (such as real estate) from a person whose last place of residence was abroad, whether by inheritance or by gift.

Accession is the legal principle whereby if someone builds something on another person's land, the owner of that land automatically becomes the owner of the building. To prevent accession, a right of superficies can be established. In this case, the building owner becomes the building owner, but not the land. The owner of the land who grants this right is called the building grantor. The building right is established for a fixed period and may be accompanied by a consideration, the retribution. The building right can arise through establishment by notarial deed or through prescription. There are various types of building rights, including independent building rights and dependent building rights, which depend on other rights such as leasehold, tenancy, or leasehold.

Registered property is property whose transfer or establishment requires its registration in specific public registers. Examples include immovable property such as land, residential properties, and commercial buildings, as well as registered ships and aircraft.

A fund designated for common expenses related to an apartment complex, listed on the balance sheet. An amount is set aside annually for future maintenance. It serves as a savings account to cover maintenance costs.

If a creditor holds an item belonging to the debtor, they have the right to retain possession of it until their claim is paid. This is called a right of lien. Consider, for example, a situation in which a watchmaker holds a repaired watch until the invoice is paid. However, not every item can simply be held by the creditor with a right of lien. There are three conditions that must be met for a valid right of lien to be invoked:

1. The claim must be due and payable. This means that there is no agreed-upon payment term, or if there is a term, it has expired.
2. There must be sufficient connection between the item the creditor is holding and the claim that has not yet been paid.
3. The creditor must have actual control over the property, which means that he must actually have possession of the property.

In strict liability, fault plays no role. A person is liable for the damage caused by another person, without the person being held personally at fault. There is a specific capacity or role on the basis of which a person can be held liable.

  • If you have children, you as a parent can (in some cases) be held liable for the unlawful actions of your child.
  • If you are a homeowner, you can be held liable for damage caused by falling roof tiles from your home.
  • If you have a dog, as a dog owner you can be held liable for any damage caused when your dog bites someone.
  • You can also be held liable as an employer, namely for the mistakes of your employees. This is also a form of strict liability and is called employer liability.

When cohabiting without children, a right of residence clause is usually agreed upon, recorded in a notarial cohabitation contract. This clause stipulates that upon the death of one partner, the surviving partner acquires the joint property, with or without payment of the value. This allows the surviving partner, for example, to become the sole owner of the joint home or its contents. A right of residence clause that is not notarized can be declared null and void later. A notarially recorded right of residence clause prevents this.

The unequivocal refusal of an inheritance.

A right of first refusal, under specific conditions, gives the right to be the first to purchase a particular good before it is offered to others.

Inheritance rights in the law of inheritance give children the right to claim ownership of assets from the estate in certain situations. These rights can be excluded by will.

S

A shareholders' agreement is a legal document that governs the mutual agreements between a company's shareholders. In cases where there are more than two shareholders, it is advisable to clearly establish how they will interact. The agreement covers various aspects, such as the intended arrangements between the shareholders, the duration of the agreement, the approach to a change of control, the handling of an exit, and the possible application of drag-along and tag-along clauses. It also addresses situations of deadlock and how the value of the shares is determined. Furthermore, decisions requiring unanimity at shareholders' meetings, financing requirements, dividend policy, non-compete and non-solicitation clauses, chain clauses, penalty clauses, and the transferability of rights are discussed and laid out in the agreement. The purpose of these detailed arrangements is to prevent shareholders from encountering unforeseen problems and to provide clarity in the complex world of business agreements.

When a private limited company (BV) is incorporated, the notary draws up a shareholder register, which records information such as the identity of the shareholder, the BV's incorporation date, and the share capital. Currently, this register is still kept on paper, but there are plans to transition to a digital Central Shareholder Register. The paper shareholder register often gets lost, which can cause problems, such as confusion about the shareholders when selling shares or determining the share ratio. The transition to a digital register aims to reduce these issues.

Shares represent portions of the company's share capital, as determined by a company's articles of association. The rights and obligations associated with shares vary depending on the type of share. Three common types are generally distinguished: common shares (letter shares), preferred shares, and priority shares.

Share transfer in a BV concerns the formal transfer of shares through a notarial deed.

A settlement administrator is an executor of an estate whose duties and/or powers are extended in a will based on the testamentary trust as described in Book 4 of the Civil Code. This generally includes powers regarding alienation, encumbrance, and distribution of the estate.

A seizure is a measure taken by a creditor in which assets are designated and frozen pending execution. After seizure, the debtor is no longer authorized to dispose of the seized assets.

Share certificates represent ownership in a company, but actual control often lies elsewhere. The holder of a certificate is entitled to dividends and shares in the appreciation or depreciation of the underlying share, but control over the company rests with the certificate holder, not the owner of the share.

More than half the total, plus one.

Subdivision occurs when an apartment is divided into multiple apartment rights. This often happens with properties that were previously divided into two apartment rights, such as the ground floor as an apartment right and the upstairs apartments as a single apartment right. If the upstairs apartments are subsequently divided into separate apartment rights, this is called subdivision.

An increase in the base interest rate that the bank can apply when you borrow without a National Mortgage Guarantee or when the borrowed amount exceeds 75% of the foreclosure value.

Alimony is a contribution towards the costs necessary to provide for someone's livelihood. It is a regular payment that is received or must be made. If someone does not have sufficient income to live on, alimony can be awarded. Alimony must be paid by the person who has a maintenance obligation for an ex-partner or child who is unable to support themselves. Married and registered partners, ex-partners, and parents have a maintenance obligation towards their children.

The amount of alimony is determined based on the income and expenses of both the payer and the recipient. The recipient's needs and the payer's ability to pay are taken into account. Ability to pay refers to the amount the payer can afford. Judges use standards and guidelines for this, known as alimony standards or trema standards. Important aspects include:

Income:

  • Salary
  • Income from other sources, such as side income
  • Student financing
  • Benefits
  • Pension
  • Rental income
  • Assets
  • Interest and other capital gains
  • Contributions from housemates for household expenses
  • Other possible sources of income

Expenditure:

  • Rental costs
  • Mortgage and interest payments, and other fixed costs, including the portion of the mortgage that has not yet been paid off
  • Insurance premiums
  • Fixed travel expenses
  • Financial obligations to others, such as other alimony obligations
  • Costs for special medical care
  • Costs incurred to generate income, such as marketing costs for self-employed persons
  • Any debt repayments

Partners can make mutual agreements about the duration of alimony payments. If this is not possible, the judge will determine the duration.
Different rules apply regarding the duration of alimony payments, depending on the moment of divorce:

  • If the divorce took place before July 1, 1994, there is no legal period for spousal support.
  • In the event of a divorce after July 1, 1994, the maximum duration of spousal support is twelve years. This applies to both mutually agreed-upon alimony and alimony determined by the court. Extension of this period is possible through the court.
  • If the marriage lasted less than five years and there are no children, the duration of alimony is a maximum equal to the duration of the marriage.

New rules for spousal support came into effect on January 1, 2020. This change reduces the maximum duration from twelve to five years. This new regulation applies to all divorces after this date, except in certain cases.

Privilege that only applies to descendants of a child, brother, sister, grandparent or great-grandparent, provided that this ancestor was rightfully part of an estate and is no longer alive, has been found unworthy, has been disinherited, has renounced the inheritance, or where the right of inheritance has lapsed.

Automatic succession by heirs to the property rights, assets and debts of the deceased, as laid down in Article 4:182 of the Dutch Civil Code, whereby they are jointly authorized to dispose of the property.

Service charges are the monthly payments that owners/VvE members make to the VvE. These charges are determined based on the budget, which specifies the VvE's anticipated costs, including a reserve for major maintenance.

A savings mortgage is a type of mortgage in which no repayments are made during the term, but in which savings are made for a final payment with which the mortgage debt is repaid in one go at the end of the term.

The division plan is part of the deed of division and is a floor plan that numbers which apartment rights there are and which areas are communal.

A moratorium is a temporary postponement of payment granted by the court, for example, when someone is unable to pay all their debts in the short term but expects to be able to do so at a later date. This is usually followed by a settlement with creditors or a declaration of bankruptcy.

The passage of time by which a beneficiary loses their right to bring a claim. This can be either liberative or acquisitive.

What does a security deposit entail?

A security deposit is a sum of money a tenant pays to the landlord at the start of a lease agreement as a guarantee for proper performance of the agreement. Besides tenants, real estate agents, mortgage lenders, banks, and energy suppliers may also require a security deposit when using their services.

Deposit upon rental

A security deposit is common when renting a property. The amount is set by the landlord and has no legal maximum, although judges generally consider a maximum of three months' basic rent reasonable. The standard security deposit for a rental property is usually one month's rent, while for commercial properties, it is equal to three times the basic rent. Upon termination of the lease, the security deposit is refunded to the tenant, unless there are any damages to the rental property that need to be settled.

Deposit upon purchase

When signing a preliminary purchase agreement for a house, the seller may require a deposit as security for the purchase. This deposit is usually 10% of the purchase price. The buyer must pay this amount to the notary within two weeks of signing the purchase agreement. Once the transfer of ownership becomes final, the deposit is refunded.

Bank guarantee

In addition to a deposit, a bank guarantee can also be used as security. With a bank guarantee, the lender promises to transfer the deposit if the purchase falls through. If this happens, the lender converts the paid amount into a loan.

The offering of an asset as collateral for the fulfillment of an obligation.

Mortgage and pledge.

T

Taxable income refers to the portion of income on which income tax is due. All relevant additions and deductions have already been applied to this income; only the tax-free amount remains to be deducted.

A tax deduction is the ability to subtract an expense from gross income for the purpose of calculating taxable income.

Wage tax is primarily the tax payable by employees on their wages. This tax is withheld from the employee's wages by the employer and paid to the tax authorities on the employee's behalf. Wage tax is part of the payroll tax system. In addition, wage tax is imposed on individuals who are considered equivalent to employees, and under certain circumstances, on the employer itself. The employer must report the withheld amounts to the tax authorities and transfer the tax due to them. Often, the employer also withholds the other portion of the payroll tax system: national insurance contributions. Wage tax serves as a withholding tax on income tax, with the withheld payroll tax being offset against the final income tax.

VAT is an indirect tax levied by the government on the supply of products or services. This tax is applied to the sales price of a product at every stage of the production or distribution process (withholding tax). Ultimately, the VAT is paid by consumers and organizations that are not VAT-registered.

VAT has various rates. The general rate is 21%. A reduced rate of 9% applies to certain goods and services. For international transactions, the rate can even be 0%. The reduced 9% VAT rate applies to foodstuffs and certain services, among other things. The 0% rate is used for international transactions and in certain situations, such as fishing and the provisioning of seagoing vessels.

Some goods and services are exempt from VAT, meaning no VAT is charged on them. For exempt goods or services, it is not possible to deduct the VAT paid as input tax.

Property tax is a municipal levy imposed on residents and homeowners. The amount of this tax is based on the assessed value of the property. A user fee is always charged, and as a property owner, you are also required to pay the owner's fee.

Transfer tax is due on the acquisition of:

1. Ownership of real estate, such as a home, commercial property or piece of land.
2. Rights to immovable property, such as building rights, leasehold rights, or membership rights in cooperative apartment associations.
3. Shares in a public limited company, private limited company or partnership whose assets consist primarily of real estate.

The transfer tax rate is 2% for residential properties and associated appurtenances, such as a garage, and 6% for all other real estate, such as commercial properties.

When acquiring ownership of real estate, transfer tax is calculated on the market value of the property. This is the highest sales price achievable on the open market.

For the acquisition of a leasehold right, in which a fee is paid for the use of the land (canon), the tax amount depends on the duration of the leasehold right and the amount of the canon.

There are various exemptions from transfer tax. If the acquisition of a property takes place within six months of the seller becoming the owner, the tax can be reduced. However, this only applies if the seller was liable for transfer tax and did not pay any deductible VAT.

Payment of transfer tax depends on how the property was acquired. With a notarial deed, the notary processes the tax return and payment digitally. If there is no notarial deed, the property must be returned and paid within one month of acquisition. A tax return form can be requested from the tax authorities for this purpose.

Corporate income tax is a tax levied on profits. The Dutch Tax and Customs Administration distinguishes between profit tax for entities and individuals. Entities, such as companies and organizations, must file corporate income tax returns, while individuals, such as sole proprietorships, pay profit tax through income tax. Corporate income tax is calculated based on the taxable amount in a financial year, which comprises profit minus deductible losses.

The corporate tax rates for 2019 are as follows: 19.0% for taxable amounts up to and including €200,000 and 25.0% for amounts above €200,000.

Upon request, a parent company and one or more subsidiaries can be designated as a fiscal unity for corporate income tax purposes. In a fiscal unity, the results of the subsidiary(ies) are allocated to the parent company. Although the subsidiary is no longer required to file an independent tax return, it retains its existence. An advantage of a fiscal unity is the ability to offset losses of one company against profits of another company within the same fiscal unity. To form a fiscal unity, the parent company must:

  • Own at least 95% of the shares in the subsidiary
  • Be entitled to at least 95% of the profits and at least 95% of the assets of the subsidiary
  • Have at least 95% voting rights in the subsidiary
  • A private limited company, public limited company, mutual guarantee company, cooperative, foundation or association that acts as a housing association, or has a foreign legal form that is comparable to it

The subsidiary must be a private limited company (BV) or public limited company (NV), or have a comparable foreign legal structure. Furthermore, the parent company and the subsidiary must use the same financial years and profit calculations and be established in the Netherlands.

Wealth tax is the tax levied on the assets a person owns, including the equity in their home, as long as it exceeds the amount of specific exemptions.

You can request a decision from the tax inspector that allows your employer to take mortgage interest deduction into account when withholding payroll tax.

The tax-free allowance is a portion of taxable income on which no tax is due. Its amount is determined by individual circumstances.

A will can stipulate that an heir's inheritance be placed under trust for a certain period. During this period, the heir cannot independently dispose of their inheritance.

"Testate" refers to the person who has died and leaves behind his or her assets and debts as an inheritance.

A homeowner is obliged to allow work to be carried out on his land for the benefit of the public interest.

A testamentary disposition by which an individual leaves a specific property or sum of money to a designated person, giving that person, called the legatee, the right to sue one or more heirs for the amount of the legacy.

Divorce mediation
A divorce is a difficult, exciting, and emotional time. What's in the best interests of the children? What should happen to the shared home and the mortgage? How will maintenance, alimony, be provided? What are the needs and what is the capacity? Are you having trouble reaching an agreement? With our guidance, you'll learn to distance yourself from each other as partners while maintaining contact as parents. Step by step, we'll identify all the underlying issues, after which we'll look for solutions that meet the interests of all parties. If there are minor children, a parenting plan must be drawn up. We'll help you with that. The legal division (name transfer) of the home and the amendment of your wills can also be arranged immediately. Afterward, freed from many worries, you can both embark on a new chapter in your lives.

Inheritance mediation
When a loved one passes away, it's sad enough. Sometimes, it also marks the beginning of family disagreements about how to divide the inheritance. Feelings of grief, anger, and jealousy can significantly hinder the grieving process. As experts in inheritance law and by applying our skills, we can help you reach a satisfactory settlement. Once a solution is reached, the agreements can be immediately formalized in a settlement agreement or deed of division.

Neighbor dispute mediation
A neighbor dispute often starts with something small: an annoyance about a loud party or a tree blocking the sunlight. If talking doesn't help and a conflict arises, we can mediate. As experts in neighbor law, we work with all parties involved to find a solution that's acceptable to everyone. The agreements can be immediately formalized in a legally binding agreement. This normalizes interactions with your neighbors and prevents further escalation of the conflict.

Business mediation
In business, and especially in family businesses, all sorts of conflicts can arise. These range from disagreements about decision-making within the company, profit sharing, investments, to business succession, and more. As experts in business law, we can help parties find a solution to their conflict.

Option to use the new house as collateral for the existing mortgage when moving.

Topping up is the process of adding homes by raising an existing building by one or more stories. Research shows that topping up could create approximately 100,000 additional homes by 2030. This makes it a good way to better utilize existing buildings and contribute to the housing challenge.

Flat roofing is becoming increasingly popular. A growing number of municipalities, housing associations, and commercial entities are exploring the possibilities of building additional homes on flat roofs. The potential is enormous. To capitalize on this potential, a national approach to flat roofing has been developed.

Adding to existing homes offers more opportunities than simply adding more. This is especially true for current residents, as adding to existing homes can be combined with sustainability improvements and revitalization. This not only improves the quality of these homes but also reduces energy bills, contributing to housing affordability.

Building up also offers opportunities for the diversity and livability of neighborhoods. By creating additional housing through building up, support for neighborhood amenities increases. This also allows certain target groups, such as first-time buyers or seniors, to move into and remain in the neighborhood. Improving and greening the immediate surroundings, while building up and making homes more sustainable, also contributes to a more livable neighborhood.

Topping up involves various legal and fiscal aspects. Imagine a municipality that has leased land and constructed a building on that land, divided into apartment rights. These apartment rights belong to different owners, each encumbered with a mortgage. This constitutes a stacking of limited rights. Questions that need to be answered include:

  1. Who will enter into a cooperation agreement with each other: the initiator, all owners, and the homeowners' association?
  2. Is permission required from the mortgage holders and the bare owner, and what if you don't get it?
  3. What will the new division plan look like, and what changes are required for the deed of division? Will you be working with a main and subdivision (old and new), or will the existing division only be modified?
  4. What adjustments are needed for the building insurance? Is there CAR insurance during construction?
  5. What do you include in the purchase agreement?
  6. What do you include in the construction contract?
  7. Should the apartment to be topped up first be delivered to the initiator who will build it, and will that person then, in turn, transfer it as a purchase to a buyer who joins the homeowners' association?
  8. Tax aspects relate to the question of whether transfer tax or sales tax is due and which transfer tax rates should be applied to the two supplies.

For more information about topping up, we also refer you to: Topping up team - Extra living floor: a win-win for everyone!


Tag-along rights are provisions in agreements between investors and capital seekers, or between shareholders themselves, intended to protect a company's minority shareholders. These rights are related to drag-along rights, which aim to give the majority shareholder freedom in a share sale. The term "tag-along" was adopted directly from English by Dutch professionals. The term "tag-along drag-along," while often used, has no substantive meaning in itself.

Tag along: meaning and background

Minority shareholders of a private or public limited company generally have limited freedom to sell their shares, according to the shareholders' agreement. The majority shareholder generally has more freedom of action due to greater voting rights at the shareholders' meeting.

Tag along clause: right to sell along

When the majority shareholder wishes to sell their stake in the company, a tag-along clause in the shareholders' agreement automatically grants the minority shareholder the right to participate in the sale. The shareholders' agreement may stipulate that this will be done under the same or similar terms as those used by the majority shareholder.

Tag along rights: freely negotiable

Tag-along rights are freely negotiable and can be interpreted differently, like most matters settled between shareholders. For example, they can stipulate that the minority shareholder has the right to participate in negotiations regarding the sale of shares. Tag-along clauses can also include provisions that indemnify minority shareholders from liability for false statements made by the majority shareholder.

Tag along clause: application in different agreements

Tag-along clauses can be included in various agreements relevant to venture capital investments, such as the term sheet, the participation agreement, and the shareholders' agreement.

A will, also known as a testamentary disposition, is a notarial deed in which you specify who your heirs are and how your assets should be distributed after your death. This deed contains your final wishes.

Each will is custom-made. Below are some common types of wills:

1. Will with legal division
2. Will with quasi-legal division
3. Will for singles
4. Will for couples without children
5. Will with usufruct
6. Entrepreneur's will
7. Will with two-step bequest
8. Will for digital legacy (Social Media will)
9. Combination will
10. Holographic (handwritten or closed) will
11. Will for soldiers (Warrior will)

The set of rules that applies when the deceased has established the distribution of their estate in a will, as opposed to the statutory distribution by intestate succession. These rules may include an obligation imposed in the will on the heirs, individually or jointly, or on specific legatees, which does not consist of the allocation of a legacy.

Inheritance law, testamentary inheritance law is the possibility to deviate from the statutory inheritance law by will.

A basic mortgage typically finances up to 75% of the property's foreclosure value, on which the base interest rate is paid. If the income and property value allow, a higher mortgage can be obtained, for example, up to 100% or 125% of the foreclosure value, which is known as a top-up mortgage.

An appointment as heir which stipulates that, after the death of the heir, also known as the encumbered party, the inheritance will pass to a specific person, known as the expectant.

The rules for the division of the community of the estate by the joint heirs, set out in Section 4 of Title 6 of Book 4 of the Civil Code.

An agreement between spouses governing the division of their assets. Without a prenuptial agreement, the marriage is entered into in community of property.

U

The portion of property tax paid by the resident of a home.

Most purchase agreements state that, up to a certain limit, no settlement is required if less land is delivered than described in the deed.

A child is considered to be born insofar as it is in her best interests; if it is stillborn, it is considered never to have existed.

This refers to the undoing of the statutory division by the spouse, so that the children of the deceased can immediately claim their inheritance in accordance with Article 4:18 of the Dutch Civil Code (within 3 months after death).

An heir is not entitled to benefit from an estate if he has committed a crime against the testator, for example by killing him or preventing him from making a will, etc.

V

A void decision is legally considered as never having existed. These are decisions that violate the law.

The determination of the value of land and a home by an appraiser based on the principles of valuation theory.

A report that records the findings of the valuation.

A mortgage interest rate that varies in line with capital market interest rates. The rate is generally lower than a fixed-rate loan taken out for one or more years.

A judgment is a legal decision issued by a judge following a civil dispute between two parties that they cannot resolve and submit to the court. The judgment is the final step in legal proceedings and is usually issued by the judge within two weeks of the hearing.

In the judgment the court mentions the following points:

1. The facts and circumstances of the legal case.
2. The legal framework.
3. The court's considerations.
4. The statement itself.

At the bottom of the judgment, the legal remedies that the parties can use to challenge the ruling are also listed.

There are different types of judgments, which can be classified in different ways, such as:

1. Interim judgment: a judgment in which the proceedings have not yet been concluded.
2. Partial judgment: a judgment in which partial final decisions are made.
3. Final judgment: a final judgment that concludes the proceedings.

Judgments can also be categorized based on the type of decision made:

1. Award judgment.
2. Constitutive judgment.
3. Declaratory judgment.
4. Condemnation judgment.
5. Negative judgment, including:
a. Declaration of inadmissibility.
b. Declaratory judgment.

Furthermore, a judgment can be classified based on the presence of the defendant and the payment of any court fees:

1. Judgment in default: a judgment in which the defendant has defended himself.
2. Default judgment: a judgment that is pronounced when the defendant was not present at the hearing.

The foreclosure value is the estimated value of a home in the event of a forced sale.

The assessed value of your home forms the basis for calculating the property tax levied by the municipality.

The reconstruction value is the amount needed to rebuild your home in the event of, for example, fire.

The reference date is the date on which your house was last appraised by the municipality under the Valuation of Immovable Property Act (WOZ).

The Valuation of Immovable Property Act (WOZ), regulates the determination of the value of homes and other immovable property in the Netherlands. The basis for determining a home's WOZ value is its estimated market value on the reference date: January 1st of the preceding year. Municipalities use sales figures and property characteristics, such as location, size, and surface area, to calculate this value. The WOZ value remains valid for one year and is publicly available, allowing every homeowner to easily compare the value of their home with that of other properties.

Since the WOZ value affects various aspects, it's essential that this value is accurate. Municipalities, water boards, and the Tax and Customs Administration use the WOZ value as a basis for collecting various taxes. Municipalities use this value, for example, for property tax (ozb), waste collection charges, and sometimes sewage charges. The Tax and Customs Administration uses the WOZ value for income tax (via the notional rental value), gift tax, and inheritance tax on residential properties, among other things. A higher WOZ value often results in a higher tax assessment. When buying or selling a house, the WOZ value can play a role in negotiations. A seller, for example, benefits from a high WOZ value because it can result in a lower mortgage interest rate, as the risk for the lender decreases. You can check and request the WOZ value yourself, as this information is publicly available.

W

“Marriage” refers to a lasting union between two persons of different or same sex, in which they enter into a joint life relationship.

The tax due on assets that fall under box 3 of the tax legislation.

Een wilsverklaring is een document waarin staat wat jouw wensen zijn rondom een medische behandeling of je overlijden. Dit document wordt gebruik als je zelf geen beslissingen meer kunt nemen doordat je bijvoorbeeld in coma ligt. Als je een wilsverklaring hebt, weten anderen wat jouw behandelwensen zijn. 

Z

A zoning plan is a plan adopted by the municipal council that determines the use of land in a municipality for a specific period.

Notary is an office. A profession. A position. The notary is a lawyer. The public office of notary entails the authority to execute authentic deeds in cases where the law requires them to do so or a party requires them to do so, and to perform other duties assigned to them by law. Over the centuries, the notary has evolved into a legally trained public official. He—and fortunately, increasingly also a she—is a legal advisor. A specialist in (one of) the practice areas of family law, corporate law, and real estate.

The notary is also involved in drafting private, non-authentic deeds, such as a purchase contract or a private power of attorney. The parties must sign this document. To verify the authenticity of the identified signer's signature, the signer must execute the power of attorney in the presence of the notary (or an employee). This requires a visit to a notary's office. This could be the office that drafted the private document, or a notary elsewhere in the country, for example, one located near the signer's residence. This costs the signer, often including a fee, identification costs, disbursements, and VAT, which can run into hundreds of euros. And that's a waste. And not always necessary.

After all, we invest heavily in information technology. We pay them for the use of Zynyo's Signing Service. This service enables the digitization of various approval processes, allowing paper procedures to be effortlessly converted into digital processes. Zynyo supports us in confidently recording digital agreements. The correct design of the digital signature is guaranteed in accordance with European ETSI standards. It's faster, more secure, more efficient, greener (more sustainable), and cheaper than going to a notary to sign a private document.

Services

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We recognize the responsibility we bear for our stakeholders: our customers, our employees, suppliers, the government, and the society we are part of. This applies to both our professional and social spheres. Our social responsibility focuses on three themes: governance , a sustainable living environment, and social engagement. We hope to make an impact through these initiatives.
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