How does a typical real estate deal in Denmark proceed?

After having viewed the property, the buyer and seller enter into a purchase agreement, to specify the terms of the sale. These include the agreed purchase price, date of takeover, and the individual terms that the buyer and seller have agreed upon.

Before you as a buyer consider looking at a property and making an offer, it’s a good idea to team up with a buyer’s agent that can guide you through the purchase process and help you with the application for permission to acquire permanent dwelling from the Department of Civil Affairs if this is required, the legal paperwork and price negotiation of the property etc.

The buyer’s agent will also be able to advise you on whether an inspection of the property is necessary, or whether there are other substantial elements in the condition report or in the sales process that you may have overlooked. Before signing the purchase agreement, it’s important to check that it includes a reservation clause regarding bank and advisor review.

Once the purchase agreement has been signed by both parties, the agreement is forwarded, together with the other documents relating to the sale, to your buyer’s agent and bank. The real estate agent is responsible for submitting the signed purchase agreement to the relevant parties in the sale.

After your buyer’s agent has gone through the purchase agreement and all the documents relating to the purchase, your buyer’s agent will schedule a telephone meeting to give a legal assessment of the purchase.

After the telephone meeting, your buyer’s agent will approve the purchase with the seller’s agent. Here, the buyer’s agent will list any conditions for completion of the sale. The sale is not final until all the conditions have been met and the withdrawal period has expired.

Once the purchase agreement has been signed by both parties, the buyer must place a down payment on the property, giving the funds to the real estate agent — this typically occurs five business days after both parties have signed the purchase agreement.

The down payment may not exceed the real estate agent’s total remuneration plus a maximum DKK 10,000 and no higher than DKK 200,000. The amount received by the real estate firm must be deposited into a separate account in a bank.

Once the down payment has been made, the buyer’s bank shall undertake to provide a bank guarantee for payment of the remainder of the sale price.

The bank guarantee must typically be placed 10 business days after both parties have signed the purchase agreement. The buyer agent can stipulate that the bank guarantee should not be provided until the sale has been made final.

If a swift handover of the property has been agreed upon, it can be arranged for a cash deposit to be made, for the sale price, on the takeover day. This means that the buyer does not need to pay costs for a bank guarantee.

Once the sale is final, the buyer’s agent will prepare the deed, which must be electronically signed by both buyer and seller using NemID. The deed is then registered on The Officail Land Registry (Tinglysning.dk).

When you buy a house, you must also remember to take out home insurance and possibly also change of ownership insurance.

The buyer’s agent will 30 days after the takeover day prepare a reimbursement statement to settle the financial balance between buyer and seller.

Before you as a buyer can get the keys to the property, the down payment must have been made, the bank guarantee placed, any reservations settled, the deed signed, any insurance relevant to the house purchase taken out, and the buyer’s agent must confirm to the real estate agent that all sale costs have been paid.

When the takeover day is approaching, the real estate agent will typically call you and arrange a time for the takeover.

Congratulations on purchasing your new home.