Buyer's Glossary
Understand the most important terms in your property purchase
The word allonge is typically used as an addendum to a written agreement. For example, allonges are made to purchase agreements that expand or clarify the terms of the agreement beyond what is specified in the purchase agreement. This could be, for example, a change in the takeover date, the purchase price, or other agreements made between buyer and seller after the purchase agreement has been signed.
The line is located 100 m from ancient monuments that are protected under the provisions of the Museum Act. The location of the line is shown on maps that are publicly available on the Environmental Portal.
When a property has been divided into owner-occupied apartments, a floor plan of all the apartments has been made. The apartment floor plan shows the outline and area of each individual apartment. The distribution of rooms is normally not shown on the apartment floor plan.
An apartment information form contains relevant information about the owner-occupied apartment and the owners’ association. Here you can see, for example, what expenses you as an owner have to the owners’ association, whether the owners’ association has incurred debt, or whether there are upcoming maintenance works on the property that will result in an increase in expenses.
The attorney’s reservation / advisor’s reservation in the purchase agreement is your security that, as a buyer, you can withdraw from the transaction at any time without costs if your advisor cannot approve the transaction in its entirety. If the advisor cannot approve the transaction, notice must be given within the agreed deadline specified in the purchase agreement – typically 4-5 business days.
A bank guarantee is a security for the payment of the purchase price and is issued by the buyer’s bank in accordance with the deadlines set out in the purchase agreement. The bank guarantee is replaced by a cash deposit on the takeover date. If there is a short time until the takeover date, it may be agreed between the parties that a cash deposit should be made immediately instead, to save the buyer the cost of a bank guarantee.
The bank reservation in the purchase agreement is your security that, as a buyer, you can withdraw from the transaction at any time without costs if your bank cannot approve the finances of the transaction. If the bank cannot approve the transaction, notice must be given within the agreed deadline specified in the purchase agreement – typically 3-5 business days.
The line is usually located 300 meters inland from the beach. Within the beach protection line, no changes to the condition may be made, no fences may be erected, no caravans may be placed, and no subdivision may be carried out.
Click here to see if your property is located within a beach protection line.
The bidding regulation covers the rules for selling a property by bidding round (also called auction sale). The regulation contains rules about how to proceed when selling your property in a bidding round and sets out the rules and requirements that the seller’s real estate agent must follow.
The following variations exist: Bond loans with fixed rate (the rate and installment are fixed for the entire term of the loan, based on callable bonds) and Bond loans with variable rate (refinancing period of 6 months, marketed under names such as F-short or FlexShort, can be combined with interest-only periods and interest rate caps).
The Building and Housing Register (BBR) is a nationwide register containing data on all buildings and dwellings in the country. The register is used by both state and municipal authorities as well as utility companies and private businesses, such as real estate agents and mortgage institutions. Municipalities use BBR data in connection with specific case processing, such as building cases and in calculating water charges and sewer contributions. BBR is also used for calculating property assessments and for analyses and planning tasks.
The law establishes specific building and protection lines along beaches, lakes and watercourses, forests, ancient monuments, and churches. The lines set limits on where you may build and mark boundaries for other interventions that could damage the experience of the landscape.
The building coverage percentage for a property is calculated as the floor area (the sum of the gross area of all floors) as a percentage of the plot area. Conservatories, enclosed coverings, enclosed balconies, enclosed covered courtyards, connecting corridors and similar spaces that can be arranged for personal occupancy must be included in the building coverage percentage. The provision does not cover open coverings, including open balconies, open terraces, carports, etc.
There are three types of building projects: constructions that can be carried out without approval requirements, constructions that must be reported, and constructions that require a building permit. A building permit is required for all new construction and all extensions and additions where the residential area is expanded.
The municipal council cannot refuse to approve a building’s floor area, number of floors, height, and distance requirements when the conditions are met. The provisions do not apply if a local plan or town plan sets other provisions.
A building surveyor (also called a building expert) is a construction-trained professional who is appointed by the Ministry of Housing, Urban and Rural Affairs to prepare condition reports in accordance with the Home Inspection Scheme.
With buyer advisory, you as a buyer receive a thorough legal review of the purchase agreement’s provisions and the transaction’s appendices. When the legal review is complete, the advisor prepares a reservation letter as an addendum to the purchase agreement. Buyer advisory typically also includes preparation of the deed and settlement statement.
A buyer’s agent is a trained real estate agent and therefore typically has extensive experience with buying and selling real property. The buyer’s agent can help you search for properties, inspect the property, negotiate price and terms, obtain and evaluate relevant documents, prepare the deed and settlement statement, etc. A real estate agent may never act as a representative for both buyer and seller in the same transaction.
Conditions that the buyer should have discovered cannot be claimed as a defect. The buyer cannot claim visible defects and deficiencies that should have been discovered during an ordinary inspection. The requirements for the buyer’s duty of investigation may be heightened in certain cases, for example if the buyer has knowledge of a specific defect and does not carry out a further investigation.
The security for the owners’ association can also be established in such a way that the owners’ association’s bylaws are registered as creating a lien for a specified amount. In that case, it is not necessary to carry out a debtor change, as this form of security automatically transfers to the buyer.
In addition to the cash price, you as a buyer must pay a number of other expenses in connection with your property purchase. This is called the buyer’s cash requirement and typically includes: the cash price of the property, cost of registering the deed and mortgage deeds, cost of buyer’s agent/attorney/building surveyor, and cost of paying half of the title insurance premium (if the transaction is covered by the Home Inspection Scheme).
Legal term for movable physical assets, i.e. furniture, machinery, fixtures, stock, etc. When purchasing real property, included chattels are listed in the sales listing. The included chattels must be delivered in debt-free and usable condition on the takeover date.
The line is located 300 meters from all churches. Within the line, no building with a height exceeding 8.5 m may be erected, unless the church is surrounded by urban development throughout the entire protection zone.
For both Danes and foreigners who wish to purchase real property in Denmark, a so-called residence requirement applies. The residence requirement means that you must, as a general rule, either have a permanent residence in Denmark at the time of purchase or have previously had permanent residence in Denmark for a total of 5 years. The permit is applied for through the Civil Agency (Civilstyrelsen). It is typically the buyer’s advisor who arranges this.
If, after the takeover date, you discover any defects and deficiencies, you as a buyer can make a claim against the seller. The general statute of limitations is, as a general rule, three years calculated from the time the defect became known to the buyer. There is an absolute statute of limitations of ten years. The complaint must have been submitted within a reasonable time.
The completion takes place when the terms of the agreement have been fully negotiated. The completion consists of having the deed prepared, the settlement statement drawn up, and ensuring that the seller receives the agreed purchase price on time. It is typically the buyer’s advisor who handles the completion.
A conditional deed exists when the buyer or seller has set conditions for the completion of the transaction. For example, when the purchase price has been paid or upon transfer of a specific part of the property (area transfer and subdivision). When a conditional deed is registered, the registration judge sets a deadline by which a final deed must be registered.
A condition report is a damage report prepared by an appointed building surveyor under the Home Inspection Scheme. The condition report is valid for 6 months. The rating system: UN (Should be investigated further), K3 (Critical damage), K2 (Serious damage), K1 (Less serious damage), K0 (Cosmetic damage), IB (No remarks).
Conservation-worthy buildings impose additional requirements on the owner, but unlike listed buildings, only the exterior is covered when a building is designated as conservation-worthy. It is the municipalities that are responsible for conservation-worthy buildings. Conservation values 1-4 are characterized as more restrictive, while conservation values 5-9 are more lenient. Buildings with the highest value of 1 will most often be listed buildings or parish churches.
A contribution rate is essentially an administration fee that the borrower pays to the mortgage institution for having a mortgage loan. The contribution rate is set by each individual mortgage institution. The contribution rate is calculated based on the loan-to-value ratio and constitutes a percentage of the remaining debt. Rates vary from approx. 0.2748% per year for a fixed-rate loan with repayment at 0-40% loan-to-value to 2.7000% for an adjustable rate loan F1-F2 without repayment at over 60% loan-to-value. The contribution rate is paid through the installment over the entire term of the loan.
A cooperative apartment in a private cooperative housing association is owned by a cooperative association whose members have the right to use the apartments owned by the association. The members have a share in the association’s assets, and the purpose of the association is to own and operate the property. The value of a cooperative apartment is not free, as in an owner-occupied property, but is determined at the cooperative’s general meeting.
There are three ways to calculate the share value: By using an indexation of the construction or purchase price of the property (approx. 4% of associations). By using a price related to the public assessment (approx. 66% of associations). By having a valuator determine the price based on an assessment of the property’s value (approx. 30% of associations).
A co-ownership agreement is relevant for all parties who own a property jointly, particularly unmarried cohabitants. In the event of separation, the legal position is not the same between married and unmarried couples. For unmarried cohabitants, the same rules as for married couples do not apply, which is why it is a good idea to make a co-ownership agreement.
The days on market for a property indicates how many days the property has been for sale on the market. On Boligsiden.dk you can see the property’s current days on market and total days on market. The property’s current days on market shows the number of days the property has been for sale with the current real estate agent, while the total days on market indicates the total number of days the seller has had the property for sale within the last three years.
In a debt assumption, a private individual takes over another private individual’s debt, with the result that the latter is released from the debt. For a debt assumption to take place, it normally requires the consent of the creditor – the mortgage institution. In a debt assumption, only the difference between the debt and the purchase price is deposited in the seller’s bank. In connection with the purchase of a property, it may be a condition from the seller that the buyer assumes any debt outside the purchase price.
A debtor change is prepared if, as the new owner, you need to assume a security or a loan registered on the property in the seller’s name. It is typically the buyer’s attorney who arranges the debtor change. When purchasing an owner-occupied apartment, a debtor change will usually need to be registered as security for any claims the owners’ association may have against the owner of the apartment.
Decommissioning deadlines have been introduced for all tank types. Oil tanks that must be decommissioned must be emptied of residual contents. The tank must then be removed, or the filling nozzle and vent pipe must be dismantled. Decommissioning must be reported to the municipality no later than four weeks after.
The deed contains a brief summary of the purchase agreement’s most important terms, including the names of seller and buyer, the property’s address, purchase price and mortgage encumbrances, easements, the public property assessment, and takeover date. All deeds today are digital (since 2009).
A defect exists if: A condition is not as guaranteed or warranted; A condition conflicts with what the buyer has stipulated; A condition does not correspond to what the buyer could reasonably expect. A distinction is made between actual defects (the property’s physical condition) and legal defects (the seller’s lack of legal authority).
When determining distances, it must be ensured that: 1) Roof water is kept on one’s own property. 2) Windows, balconies, and similar features do not cause significant intrusion of privacy in relation to other buildings on the same property and on neighboring properties. If an area is predominantly built with continuous development, the municipal council may determine that new construction must be erected at the road or building line and extended to the boundary against the neighboring property.
The seller’s duty of loyal disclosure can be characterized by the seller’s obligation to inform the buyer about defects that the seller knows or should have known about. The seller must also inform the buyer about all conditions of the property that the seller must assume are not insignificant to the buyer, and conditions that the seller must assume the buyer is not aware of.
If early access has been agreed, the buyer gains access to the property before the takeover date, provided that the buyer pays for the ordinary usage expenses – i.e. water, heating, and electricity. The buyer does not pay mortgage installments or interest on the purchase price before the takeover date. Early access requires that the deed has been signed, transaction costs have been deposited, any home insurance has been taken out, and the entire purchase price has been secured.
An easement is a restriction on the use of a property, land, or other asset. Examples of registered easements: local plans, bylaws for an owners’ association, co-ownership agreements, easements regarding connection to district heating or reversion obligations, etc.
The electrical installation report is an impartial and professional inspection of the property’s electrical installations, their legality and functionality, and is, together with the condition report, a prerequisite for being able to take out title insurance in a property transaction. An electrical installation report is carried out by an authorized electrical installation company.
An encumbrance on a property represents a loan or security registered on the property that must either be assumed or deleted in connection with the given property transaction.
When selling a property, the seller is obligated to have an energy rating prepared for the property. The energy rating must be provided to the buyer before the purchase agreement is signed. Certain properties are exempt from the requirement, including listed properties, properties for demolition, allotment garden houses, summer houses, and houses under 60 sqm.
The equity is the value of the ready cash you would have in hand if you sold your property right now. It is the actual amount you have left over when you subtract the remaining debt from the property’s current value. As an owner, you can use the equity for borrowing.
Escrow means that the down payment or the purchase price in its entirety is transferred to the seller’s bank or real estate agent in the transaction in accordance with the terms of the purchase agreement.
When all the conditions for the transaction have been fulfilled and the transaction is therefore final, a final deed is prepared and registered on the property, which proves that you are the rightful and legal owner of the property.
The floor area includes all floors, including: Basements where the ceiling is more than 1.25 m above ground level. Usable attic floors, including attic floors where living rooms can be arranged without significant intervention in the roof structure. Enclosed coverings for personal occupancy, i.e. conservatories, enclosed balconies, enclosed covered courtyards, enclosed terrace coverings, connecting corridors and similar spaces that can be arranged for personal occupancy.
A forced auction is a “forced sale” that can be initiated by a person who has money owed by the owner. When buying at a forced auction, the buyer bears full responsibility for any defects and deficiencies. The buyer cannot take out title insurance and has no possibility of making claims against the previous owner.
Click here to see an overview of published forced auctions in the Official Gazette.
For both Danes and foreigners, a residence requirement applies: you must have permanent residence in Denmark at the time of purchase or have previously had residence for a total of 5 years. EU and EEA citizens have special rights: they can purchase a primary residence in Denmark without permission from the Ministry of Justice if they are employees, self-employed, or have sufficient means. EU/EEA citizens do NOT have priority for purchasing summer houses/vacation homes.
The forest building line is located 300 meters from all public forests (regardless of the size of the forest) and 300 meters from all privately owned forests if the area constitutes at least 20 hectares of continuous forest. Within the forest building line, no buildings, caravans, or similar structures may be placed.
If you have reached the state pension age, or receive early retirement benefit, social pension, or partial pension, you have the option to defer payment of property tax on your primary residence or summer house. The municipality provides a loan for payment of your property tax against security in your property. The loan falls due upon change of ownership as a general rule.
Click here to apply for a loan for payment of property taxes.
Heights are measured vertically from the natural terrain. For buildings on sloping terrain or terrain with significant level differences, measurements are taken from one or more level planes determined by the municipal council. The location of the level planes must be clearly stated in the building permit, normally by indicating the planes’ elevations.
When you take over a property, you also take on the full risk of the property. If you do not arrange insurance from day one, there is no coverage. If a loan has been taken out on a property and a mortgage deed has been issued, the mortgage institution or bank will require that the property is at minimum insured against fire.
When financing your primary residence, you can generally borrow up to 80% of the property’s purchase price from a mortgage institution and 15% of the purchase price through your bank. For the remaining 5%, self-financing is required by law. For vacation homes (e.g. summer houses), you can borrow up to 75% of the property’s purchase price, 20% of the purchase price through the bank, and 5% in self-financing.
A homeowners’ association is an organization of property owners in a specific area. The homeowners’ association represents the owners’ interests, e.g. in relation to the municipality regarding road maintenance, changes to the local plan, etc. The homeowners’ association may also be responsible for the operation and maintenance of any private common roads, common areas, and common facilities.
An ideal share is, like owner-occupied apartments, an independent real property that can be purchased and financed with bank and mortgage loans. As a buyer of an ideal share, you acquire a property together with one or more other buyers in co-ownership. The co-ownership agreement regulates the internal relationship between the apartments. With an ideal share, the cadastral division does not appear in an official apartment register. The division is based on a private agreement and appears in the registered co-ownership contract.
With an indemnity bond, an owner of real property gives a specific creditor security in their property when the size of the debt has not been finally determined. The indemnity bond can be used as security for a specific commitment – e.g. an overdraft facility or frozen property taxes.
An installment is what you as a buyer pay each month for having a loan. The installment on a mortgage loan covers repayment of the loan, interest, and a contribution to the mortgage institution.
The line is located 150 meters from all lakes with a water surface area of over 3 hectares and 150 meters from the banks of watercourses that in 1983 had a bottom width of at least 2 meters. The location of the line is shown on maps on the Environmental Portal.
A land register certificate is an extract of what is registered on the property in the land register. The land register certificate provides information about encumbrances, easements, and attachments on the property.
Click here to check the land register certificate on your property.
New loan types are constantly appearing on the market. They can fundamentally be divided into fixed-rate loans and variable-rate loans. Most loans can be combined with interest-only periods.
A local plan is prepared by the municipality and adopted by the municipal council. The local plan may establish rules for use, the extent and placement of buildings, roads and paths, and the architectural design of a specific area. A local plan must consist of binding provisions, map appendices, and an explanatory statement.
The local plan obligation arises in connection with major subdivisions and major construction and engineering works. The decisive criterion is whether the project would result in a significant change to the existing environment.
A mortgage deed is a loan granted against security in a property. With a mortgage deed, the owner pledges their property as security to the lender – typically the bank, which then becomes the mortgage holder. If the owner does not make repayments on the loan as agreed, the mortgage holder may request a forced auction of the property. The following types of mortgage deeds exist: Mortgage institution deeds, Owner’s mortgage deeds, Indemnity bonds, Seller’s mortgage deeds.
A new type of home loan that resembles mortgage loans but differs in that the loan is not directly linked to the sale of bonds. Mortgage-like loans can be granted for up to 80% of the property’s cash value, with 30-year terms and the option for interest-only periods, interest rate caps, and fixed rates. Issued by a financial institution, which means the loan can be terminated if the bank assesses that the conditions have changed. A mortgage loan is non-callable from the mortgage institution’s side.
Adjustable rate loans are marketed under names such as Rate Adjustment Loan, Adjustment Loan, and Flex Loan. The loans typically have a term of between 10 and 30 years, and the rate adjustment period can range from 1 to 10 years. The installment is only fixed in the period between rate adjustments, while it is variable over the entire term of the loan. The remaining debt decreases faster than with fixed-rate bond loans, as a larger portion of the installment goes toward repayment.
When you take out a bond loan, the mortgage institution must sell bonds for the amount you borrow. The cash amount depends on the bond rate at the time of disbursement. Available with fixed or variable rates. Fixed-rate bond loans are suitable for conversion up and down. Down-conversion: repay the loan at par value 100 and take out a new cheaper loan. Up-conversion: repay the loan cheaply and take out a new loan with lower remaining debt.
The term of a mortgage loan is most often between 10 and 30 years. In most cases, you have the option to not make repayments on all or most of your home loan for up to 10 years. During the interest-only period, you only pay interest and contribution on the loan. There are differences in the interest-only loans offered by individual mortgage and financial institutions. After the interest-only period expires, you are left with a 20-year loan with repayment, so the installment increases.
The municipal or local plan for an area may contain special conditions to be promoted in connection with the relevant construction. This may involve conditions regarding specific expressions in the building style or particular elements in the design of the development.
The “net area” normally refers to the internal floor area in all rooms. There is no legally regulated definition or professional standard for calculating the “net area”. One should be aware of whether, for example, built-in closets, radiator covers, and similar features are included or not.
An owner-occupied apartment is an independent real property that is typically part of a larger property, most often a multi-story building. Each owner-occupied apartment has its own number under the main property’s cadastral number, so that registrations can be made on each individual apartment.
The owners’ association is regulated by the association’s bylaws. If individual bylaws have not been adopted by the owners’ association, the “Standard bylaws” apply to the owners’ association. The bylaws will normally contain, as a minimum, rules for convening and holding general meetings. The bylaws may also contain restrictions on the owner’s right to use their apartment, e.g. regarding pet ownership and the right to sublet.
The relevant documents regarding owner-occupied apartments are: Apartment information form (questionnaire answered by the administrator), Owners’ association bylaws, Minutes from the most recent general meetings, The owners’ association’s latest financial statements and budget, Insurance policy for the main property, House rules, Apartment floor plan.
The sales listing contains a statement of the ownership expenses for the property in question. The ownership expense for the first year includes the current property value tax, land tax, and payments for property insurance. Note that the ownership expense does not include consumption expenses such as electricity, water, and heating.
An owner’s mortgage deed is a mortgage deed loan that is most often created by the owner of a property when security must be provided for a loan or similar arrangement with a financial institution.
In a parent purchase, parents typically buy an apartment or a house for their child and then rent it out to the child. The parents/children can choose between three different tax calculation rules: 1. the general tax rules for individuals in the Personal Tax Act 2. the business scheme 3. the capital return scheme.
A prejudicial legal remark exists when the land registration court issues a remark on a deed or mortgage deed about discrepancies with what is recorded in the land register. For example, the seller’s loans that must be deleted from the land register. When the discrepancies have been resolved, the legal remark is deleted. The deed is then remark-free and the buyer is the final owner of the property.
As an owner of a listed building, you must be aware that both external and internal alterations require permission from the Danish Agency for Culture, and that you have an obligation to maintain the building in proper condition. In return, there is an exemption from property tax. Permission is required to plaster a facade, change color, re-lay a roof, replace windows/doors, redesign a courtyard, alter fixed fixtures and fittings, etc.
The property capital gain is the difference between the selling price and a specially calculated acquisition price of a property. The selling price is essentially the cash-converted sale price, minus selling expenses such as agent fees and attorney costs.
The property data report contains information originating from public registrations. The report gathers information from various public registers about buildings, finances, plans, soil contamination, and any restrictions on use.
Land tax is a tax paid by all property owners, regardless of whether you reside in your property or not. Land tax is administered and collected by the municipalities. The tax is paid on the value of the land as it appears in the public assessment. Each municipality determines the rate (in per mille) to be paid, however the rate must be at least 16 and at most 34.
The public property assessment forms the basis for, among other things, the calculation of property taxes and property value tax. When calculating the registration fee for registering the deed, this is based on the purchase price, but at minimum the public property assessment. Due to erroneous property assessments, the public property assessment has been suspended.
The purchase agreement regulates the contractual basis between buyer and seller and specifies the terms under which the transaction is to be completed. The purchase agreement helps ensure that no potential disagreements arise between buyer and seller after the transaction has been concluded.
Radon is a radioactive gas found everywhere in the ground in varying amounts. Radon can seep up through the house’s foundation and basement walls via cracks and fissures and can cause high radon levels in indoor air. Radon is among other things a cause of lung cancer.
When taking out a mortgage loan, you can choose to lock the interest rate to protect yourself against rate drops. A rate lock is a form of insurance where there is a clear agreement about the rate at which the bank will disburse your loan on the actual disbursement date. Once you have locked the rate on your loan, it is binding.
Registration of deed: fixed fee of DKK 1,750 + 0.6% of the purchase price or the public property assessment (whichever is higher). Registration of loan: fixed fee of DKK 1,730 + 1.45% of the borrowed amount. Example: Purchase at DKK 3,000,000 = DKK 19,750 for the deed + DKK 36,530 for an 80% mortgage loan. The lien follows the property and not the owner, so you can save by reusing the registration fee.
The purchase price is released to the seller when the deed is finally registered without legal remarks. Release must take place immediately when there is a remark-free deed. Release can take place at the earliest on the takeover date. The buyer has the practical right to withhold DKK 10,000 to cover any settlement balance in the buyer’s favor if the settlement statement has not been prepared.
The remaining debt on a loan is the outstanding debt you have not yet paid + the interest that has not yet been added to the loan. The remaining debt is adjusted as you make your repayments.
A remark-free deed exists when the loans and easements on the property that are not to be taken over by the buyer have been deleted from the land register. It is typically the seller’s bank/advisor who arranges this.
When the buyer’s advisor has reviewed the purchase agreement and all transaction documents, the buyer’s advisor normally prepares a reservation letter with any additions to the purchase agreement. The reservation letter, together with the signed purchase agreement, constitutes the buyer’s complete offer to the seller. Only when all reservations have been accepted by both buyer and seller and the reservations have been fulfilled is the transaction considered final.
A reversion obligation is a right for a municipality to buy back a property for the original sale price. The most common arrangement is that the municipality can buy back the property in a specific year. Buyback rights are registered on the property, and it appears from the land register whether the municipality has a buyback right. Municipal buyback rights exist on properties both in and outside Copenhagen.
If you as a buyer/private individual wish to withdraw from your purchase, you must give the seller written notice within 6 business days (the deadline expires at midnight) and pay 1% of the purchase price to the seller. The 6-day deadline is calculated from the date the purchase agreement was concluded. Saturdays, Sundays, public holidays, and Constitution Day are not included in the calculation. There is no right of withdrawal in the case of forced auction, agricultural property, or if the purchase is not for residential use.
The road access requirement means that for every subdivision, legal access to a public road must be established. If the property borders a public road, the requirement can be met by the road authority granting permission for a crossing. Alternatively, road access must be established via private common roads.
The road line describes the boundary toward a road or path. The building line is typically parallel to the road line and indicates the minimum distance from the road where you may build.
In connection with entering into the brokerage agreement, the real estate agent must prepare a sales listing. The sales listing is an overview of the property’s financial details and a description of the property. It can be obtained from the real estate agent or via the internet.
When selling an owner-occupied apartment, security for the owners’ association will almost always be registered. The security, which is often registered in the form of an owner’s mortgage deed, must be transferred to the new buyer. This is done by registering an endorsement for debtor change. It costs a registration fee of DKK 1,730 plus fees.
If you are buying a property, you as the buyer must be able to pay at least 5% of the purchase price yourself. This is called self-financing. The remaining amount is financed through mortgage loans (up to 80% for primary residences and 75% for vacation homes) and bank loans (up to 20% for primary residences and 15% for vacation homes). The self-financing rule came into effect on November 1, 2015.
When selling real property, the seller is, as a general rule, liable for hidden defects and deficiencies for 10 years. The seller can be exempted via the Home Inspection Scheme by presenting: A valid condition report, A valid electrical check, An offer for title insurance, Information about the legal effects, The seller’s promise to pay half of the title insurance premium. The seller is still liable for defects relating to the land (contamination), defective service pipes/sewers, and conditions that conflict with public regulations. The absolute statute of limitations is 10 years (30 years for contamination).
A seller’s mortgage deed is a mortgage deed that provides a lien on a property and is a promissory note in which the buyer acknowledges owing an amount to the creditor (seller). It is a seller-financed home loan. Seller’s mortgage deeds are often used in property transactions where the buyer needs to borrow a portion of the purchase price from the seller.
Separate sewerage means that rainwater and wastewater, which previously flowed in the same pipe, must now flow in separate pipes. The rainwater is directed to a basin or watercourse, and the wastewater to the treatment plant. This reduces the risk of discharge of untreated wastewater and flooding. As a buyer, you must pay for the work on your own property yourself.
A statement of the expenses for taxes, insurance, waste collection, and water, etc., which upon change of ownership must be distributed between buyer and seller on the takeover date. The statement may also contain amounts agreed in the purchase agreement or amounts for the buyer’s payment for any assumed chattels.
The regions register which areas are, or are suspected to be, contaminated. The registration is based on 2 categories: Knowledge level 1 (V1): actual knowledge of activities that may have been a source of soil contamination. Knowledge level 2 (V2): technical investigations have been carried out. The contamination is classified as FO (no risk), F1 (no risk if advice is followed), F2 (constitutes or may constitute a risk).
A soil investigation is an examination of the soil’s physical and/or chemical properties. Soil investigations are typically used in connection with new construction to examine foundation possibilities or in connection with examining the soil for possible oil contamination from a buried oil tank. A soil investigation is also called a geotechnical investigation.
The takeover date is the legal date of transfer as stated in the purchase agreement, when ownership passes from seller to buyer and from which all expenses must be paid by the buyer, including mortgage installments, property taxes, etc.
A tax mortgage deed is not a mortgage deed, but a way to “park” a potential registration fee for later use. The tax mortgage deed can only be used for fee transfer.
Title insurance covers hidden defects and deficiencies – i.e. defects that are not described in the condition report and electrical report. As a buyer, you can choose which insurance company to take out title insurance with and whether the title insurance should run for 5 or 10 years. However, the seller is only obligated by law to pay half of the cheapest title insurance premium.
A transfer deed is used when a property bought at a forced auction is transferred to a party before the auction deed has been registered. In this way, you save on registration fees by only registering once.
It is a calculation model used by the tax authorities for comparing and valuing properties. Secondary building parts are assigned less weight. General rule: residential area on the ground floor is weighted at 100%, utilized attic at 90%, basement at 40%, detached garage at 25%, conservatory at 15%, etc. The percentages vary depending on property type and location.
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