A
Surrender value
The capital you have built up in the investment portion of your mortgage, which will be paid out when your mortgage is terminated.
It is also the benefit you get in the event of early termination of a blended life insurance policy. You can use this amount to pay off your mortgage, or part of it.
Closing commission
The amount the bank charges when taking out a mortgage.
Act
A deed is a Notarized document that records many things. When buying a home, you have to deal with the deed of delivery and a mortgage deed.
Annuity mortgage
With this form of mortgage, the gross monthly charge remains the same during the term of loan as long as the interest rate does not change. Over time the composition of the net monthly burden does change-in the beginning you pay a lot of interest and little repayment, as the term progresses the composition changes and you start paying more and more repayments and thus less interest.
Apartment Law
Anyone who has an apartment right has a share in a building. That share also entitles you to exclusive use of that particular part of a building. In addition, the apartment right entitles you to use common areas, such as the stairwell. The share and its right of use together constitute the apartment right. This apartment right is registered registers of the Land Registry. This simultaneously allows for the possibility of establishing a mortgage of one’s own. All apartment owners collectively own the entire apartment building or complex. Apartment rights can be for homes, but also for commercial or office space.
Objects
Available homes for sale or rent.
Rental brokerage
Helping to find a suitable home to rent.
Hiring agent
Realtor working for you to find a suitable rental property.
Acquisition, sale and financing costs
Costs to incur when you buy a home. Think of the transfer tax, notary fees, broker fees and, for example, the closing commission for the mortgage. Some of these expenses are tax deductible.
Purchase brokerage
Helping to buy a suitable home.
Purchase broker
Realtor who helps you buy a suitable home.
Purchase order
An assignment you give a real estate agent. This one will help you find and buy a home.
Repayment-free mortgage
A form of mortgage in which you pay only interest and no repayment.
Apartment
an apartment is a dwelling in a larger building. An apartment is the name for a one-story dwelling.
Apartment Law
An exclusive right of use of part of a building of which a person is co-owner. This effectively means that the foundation and roof concern every apartment owner, even if they do not live on the ground or top floor.
B
Bank guarantee
A bank’s guarantee that you usually agree with the seller when you buy a home. Usually it is set soon after the resolutive conditions leave.
Investment property
Building you buy as an investment.
Professional liability insurance
An insurance you can purchase for the purpose of liability that covers if a mistake is made in professional practice.
Tax Deduction
Mortgage interest you may deduct for income tax purposes. The cost of the mortgage deed, appraisal and National Mortgage Guarantee fees are also deductible.
Zoning
A plan drawn up by the municipality stating what the zoning is.
Bid
A proposal (amount) you put out on a property for sale. It is often supplemented by other conditions, such as obtaining financing or structural inspection.
Penalty interest
An amount you must pay when mortgage payments are not made on time. You also often pay penalty interest when you pay off more than the allowed percentage of the mortgage in the interim.
Building Deposit
The portion of the mortgage amount used to meet the installments for building or remodeling the home is parked in a construction deposit. You will receive an interest rate related to your mortgage on this amount. Builder’s bills are paid from the construction deposit. The maximum term of a deposit is 2 years.
Construction finance
How to pay for a new home to be built. This is done in installments, first the land and then as construction progresses the remaining installments. The mortgage is taken out at the time of purchase for the entire amount and put on deposit. From the deposit, installments are paid. Interest is received on the amount on deposit. This is sometimes lower than the mortgage interest to be paid on the amounts withdrawn.
Construction deadlines
A new construction home is often paid for in installments. The portions of the purchase/contract price that must be paid according to the contract for a new home are the construction installments.
Reflection period
After entering into the purchase agreement, you have a three-day reflection period as a buyer (weekend counts for 1 day). The cooling-off period starts after the buyer and seller have signed the deed of sale and the buyer has received (a copy of) the deed. This is to protect the buyer in this market.
Company building
Building intended to conduct a business therein.
Business space
Office building, retail building, commercial building
Investments
Investing in real estate for profit
Mediation Agreement
Agreement to broker the sale, purchase or rental of your home.
Mediation Conditions
Terms applicable to the mediation agreement
Professional liability insurance
An insurance policy purchased by brokers and mortgage/assurance advisors for the purpose of liability arising from errors or omissions committed in the practice of their profession.
Cutlery
An accurate description of a work, along with materials used, conditions and quality requirements, and construction drawings. It is also needed for construction quality control.
Zoning
A plan prepared by the municipality indicating what the land or buildings may be used for, which is binding. It consists of a plan map, building regulations, explanatory notes and an operating plan. On the zoning map, a buyer can see what zoning the parcel of land the buyer is going to buy has. Building regulations indicate and further define building options and uses in that area, for example, gutter heights, contents of structures, building lines, building intensity, etc.
Block heating
Heating through boilers that heat an entire block or complex.
Bid
An amount bid by a serious prospective bidder along with any resolutive conditions, completion date and listing of movable and immovable property included in this bid.
SNB (commercial real estate)
real estate intended for business activities
Deposit (rental)
The deposit you pay when you rent a property. Usually 1 or 2 months.
Building Deposit
New construction homes are paid for in installments; generally, you pay for the land first at the notary and as construction progresses the remaining construction installments. The mortgage is taken out for the entire amount at the time of purchase of the land and placed in a construction deposit. The installments are paid from this construction deposit. You will receive interest on this amount, but it is often lower than the mortgage interest to be paid.
Gross rent
Gross rent is the rent paid monthly. This includes service charges and heating costs in addition to net rent.
Bungalow
A bungalow is a dwelling, sometimes a recreational home, consisting of a single living and sleeping area on the first floor. When one room is on a second floor, this type of construction also falls under the term bungalow, often called semi-bungalow. Many bungalow parks have been built in recent years. The bungalows then serve as recreational homes. Most bungalow parks have shared paths and parking lots. Sometimes there are more facilities under joint ownership. Maintenance is then housed in an Owners’ Association (VvE). The boards of these associations can commit legal acts and enter into contracts to which individual members are legally bound. When buying a bungalow in a bungalow park, such a VvE sometimes represents an unexpectedly high additional fixed expense.
C
Courtage
The salary or commission you pay the broker after a successful service.
Canon
The annual levy on land issued on a long lease.
Casco House
This indicates the supporting structure of a house plus the exterior finish. The house is wind and watertight, but the interior finishing work remains to be done.
Convector well
This is a heating element installed in a narrow space below the floor surface. In this, you don’t see a radiator in sight.
D
Daily interest
The interest rate applicable to new mortgages at that time.
Valley Interest
The lowest interest rate during the period the mortgage offer is valid.
Doorway house
A sectional house is the designation for a house that was widely built in the Netherlands in the second half of the twentieth century. The name is derived from the fact that the living room runs the entire depth of the house. Consequently, the living room has two windows, allowing the sun to shine throughout the room. Next to the living room is generally a hallway with a staircase to the floor behind the front door, a corridor with access to the toilet, and an enclosed kitchen. On the second floor of the house a number of bedrooms.
E
Economic value
Amount a property would fetch if sold under optimal conditions (also called the private or free sale value).
Effective interest rate
The effective interest rate indicate the actual cost of the mortgage per year. The interest you actually pay. When calculating the effective interest rate, besides the nominal interest rate, any closing costs, the time of payment (at the beginning or end of the month) and the number of payments per year (every month, every quarter, etc.) are also taken into account. Also called gross real interest.
Title deed (deed of delivery)
A copy of the conveyance deed certified by the Land Registry. You will receive a title deed from the notary; this is also the title to your house.
Leasehold
If the land your house is on is not yours, you pay rent. The rent is called ground rent and is tax deductible.
Execution Value
The foreclosure value is the appraised proceeds of a house in the event of a foreclosure sale. Usually this amount is 75% to 90% of the value at free sale.
Expiration date
The end date of a contract, such as the end of a mortgage contract or an interest rate fixation period.
Single-family house
A single-family home is a housing type intended for occupancy by one person and his/her possible family.
Home equity reserve
The owner-occupied home reserve is the amount for which you cannot take on an owner-occupied home debt when you buy another owner-occupied home. Thus, the owner-occupied home reserve is the amount that is “required” to be used for the purchase of the owner-occupied home. If the owner-occupied home reserve is positive, you cannot take on an owner-occupied home debt for this amount when you buy another owner-occupied home. If the owner-occupied home reserve is zero or negative, the owner-occupied home reserve does not affect the owner-occupied home debt. The owner-occupied home reserve increases with the excess value of a sold owner-occupied home.
Home Equity Debt
Home equity debt is the amount of the loan(s) for your own home. You can deduct the interest you pay on this loan(s) in Box 1. This is the (mortgage) debt you took out for the purchase (costs), for renovation and maintenance of your own home and/or for the redemption of the rights of emphyteusis, superficies or encumbrances. You can basically deduct the interest on that debt as an expense of your own home in Box 1.
Storey
A storey or floor is a layer of a building.
Expat
Someone who works abroad for long periods of time.
F
Financing costs
Costs incurred in obtaining a mortgage, such as appraisal fees, mortgage deed fees and National Mortgage Guarantee fees.
Flat
A flat is a building with several residential floors (storeys).
Funda
The Internet site(www.funda.nl) that lists homes offered by real estate agents.
G
Housing Guarantee Institute (GIW)
Established in 1975, the Housing Construction Guarantee Institute (GIW) aims to promote the quality of new-build owner-occupied homes and to foster trust between buyers of new-build homes and builders. The GIW draws up regulations for this purpose, in consultation with representatives of consumer organizations, building contractors and Dutch municipalities. The buyer of a new construction purchase home built with GIW guarantee is assured of the quality of the housing plan and a reliable builder. In the unlikely event that something does go wrong, the GIW guarantee certificate offers protection. This means, first of all, that parties can use a low-threshold dispute resolution system. And if necessary, the buyer can claim the financial guarantee of the GIW scheme in the event of defects in the home or the insolvency of the builder. The vast majority of new construction for sale homes in our country are built with GIW guarantees.
Use area
The usable area of a room or group of rooms is the area, measured at floor level, between the dividing walls (load-bearing walls, enclosing the room or group of rooms in question. Only heated areas count in the calculation.
Liberalized rents
The rent of your property is liberalized in two cases. First, if you moved into a home on or after July 1, 1994, with a rent above the rent subsidy limit then in effect. In addition, if you are a tenant of an independent new construction home (i.e., not a room) that was first occupied on or after July 1, 1989 with a rent above the rent subsidy limit for that year. The rent subsidy limit is adjusted on July 1 each year.
Deregulated rental property
A rental property where the rent is allowed to exceed a certain maximum according to the point system. For a deregulated rental property, there is no maximum rent.
Registered partnership
Partners can have their relationship officially recognized through a registered partnership. This can be done by registering the partnership at the civil registry. The tax position of persons in a registered partnership is similar to that of married persons.
Green power
Green power is electricity generated from renewable energy sources.
Ground Heat
Ground heat or geothermal energy is energy extracted by using the temperature difference between the earth’s surface and heat reservoirs located deep within the earth. Especially in volcanic regions (Iceland), these are at such shallow depths that extraction is economically worthwhile.
Again, this is handled by so-called heat pumps.
H
Reconstruction value
The amount needed to rebuild the home, such as after a fire. The rebuilding value, usually listed in the appraisal report, is the basis for your home’s building insurance.
Joint and several liability
When mortgage debt is incurred jointly, each can be sued separately for the total debt.
Mortgage
Long-term loan with real estate (i.e., your home) as collateral.
Mortgage deed
Notarized deed granting the mortgage right. All rights and duties of mortgagor and mortgagee are stated. This deed is recorded in the public registers that you can find at the land registry.
Mortgagor
The one who mortgages a property. Thus, the mortgagor is the homeowner. The real estate as is collateral.
Mortgagee
The party that lends money against the acquisition of mortgage security, i.e. with real estate as collateral. Thus, the mortgagee is the lender.
Mortgage Register
A public – accessible to all – register in which the mortgage is registered through the notary. The mortgage register is kept at the land registry.
House
There are three types of houses according to the method of construction, namely (1) detached houses, (2) houses attached to one other house. This is called “semi-detached,” (3) houses attached to another house on two sides. This is usually called a row house.
Housing Permit
A permit a tenant sometimes needs to live in low-cost housing. In this way, the municipality controls the distribution of low-cost housing. The housing permit can be requested from the relevant municipality. Income counts in whether or not this permit is obtained.
Lease clause
There is a standard provision in almost all mortgage deeds, making it illegal to rent or lease the house without the bank’s written permission. This is called a lease clause. After all, a rental property is worth less on the open market.
Rent protection
Rent protection means that if the landlord terminates the lease and the tenant disagrees, the landlord must always go to court to get the tenant out. As long as the court has not ruled that the tenant must move out of the house, the lease continues. Rent protection applies to residential and retail business space.
Rental agreement
The deed recording the lease
Rental property
A residential or commercial property owned by a landlord (a private individual, investor or housing association), who has entered into a lease and rental agreement (usually set forth in a lease) with the user of the rental property who pays monthly rent for it.
Rental Law
The lease is governed by Title 5 of Book 9 of the Civil Code. Book 7 deals with special agreements. This means that the general contract rules in Book 6 are also relevant to the lease.
Rental allowance
An allowance the tenant can apply for if the rent is too high in relation to the tenant’s income. It is a financial allowance from the government for the cost of rental housing. Until January 1, 2006, rent allowance was still called rent subsidy.
Rent increase
The annual rent increase can be mutually agreed upon by landlord and tenant.
Rental property
Property intended for rental.
Mortgage deed
This document reflects agreements between buyer and financing institution regarding the mortgage.
Mortgagor
Homeowner. The house is given as collateral mortgagee the one who accepts the house as collateral (mortgage institution).
I
Contents insurance
Home contents insurance is insurance against damage one may incur to one’s household contents (or; household goods). Contents insurance is a non-life insurance policy and is classified under fire insurance. Content differences exist between the contents insurance policies of various insurers. These differences are often small, so it is quite possible to give a general description of a household insurance policy. Contents are all movable items belonging to the insured’s private household.
Contents value meter
Guarantee against underinsurance. This means that in the event of a claim, the insurer will not claim for any underinsurance.
Property Contents
Gross volume (length x width x height) using outside dimensions.
Entry Interest
A starting or entry-level interest rate is a temporary, usually low mortgage rate (1 or 2 years). During this interest rate period, you may convert or lock in the interest rate for a specified period and mortgage rate at no cost. This type of interest rate can usually only be chosen with a new mortgage. An entry-level rate can be interesting if you expect mortgage rates to fall even further, and thus want to wait and see before committing to a long-term mortgage. For example, if you expect interest rates to drop significantly within a year, then an entry-level rate is a good idea because you can then lock in the mortgage a year later at a much more favorable interest rate.
K
Land Registry
National institution where all real estate is registered, indicating the owner and any easements and leaseholds. The land registry also maintains the mortgage register. The land register is a public register.
Cadastral extract
The cadastral excerpt is a summary containing the basic data of a real estate object, vessel or aircraft from the cadastral registration on a given date. The survey shall include: – name, address, sex and date of birth of the cadastral owner – cadastral designation – area – rights in rem (except easements) – encumbrances, such as designations under the Monuments Act, designations under the Privileges Act (pipes) and decrees on the Soil Protection Act (pollutions) – additional registration such as certificates of inheritance, change in mortgages and redemption of leasehold canons. The excerpt is intended to indicate who is registered with the Land Registry as the owner of a particular plot of land on a particular date.
Bill of sale
This document documents a real estate purchase agreement in writing.
Cost of Buyer (k.k.)
The buyer pays the cost of buying the property. The buyer’s costs include the costs for (1) transfer of the cadastral right to the new owner in the Mortgage Register of the Land Registry; (2) 2% transfer tax (1999 rate); (3) notary fees for the execution of the deed of delivery
Stove
The difference between a fireplace and a stove is that the stove is located in front of and not in the chimney opening like a fireplace.
Bare rent
The rent per month without service charges and any heating costs.
Office building
Business space suitable for mainly administrative work.
Bill of sale
A deed is a Notarial document that records things.
Purchase Agreement
A sales contract, also referred to with an old-fashioned term as agreement of sale and purchase, is an agreement, where the buyer pays a purchase price to the seller, who in turn transfers ownership of a good to the buyer.
Buying house
Property intended for sale
L
Delivery
The delivery is divided into two parts. Upon legal delivery, the plot is transferred to the buyer’s name. This is done by signing the deed of transfer at the notary. Also called deed of conveyance. The actual delivery takes place when the keys are handed over.
Delivery deed (proof of ownership)
A notarized deed transferring the real estate, in this case the house.
Duration
The years between taking out and paying off the mortgage.
Vacancy Law
Under the Empty Homes Act, a property can be rented out temporarily.
Skylight
A system of windows in a framework that allows sufficient daylight to enter through the roof.
Duration
The years between taking out and paying off the mortgage.
M
Monthly charge
The amount your mortgage will cost you each month in interest and principal. The gross monthly charge is the amount you pay each month, net monthly charge is the amount remaining after your tax deductions are taken into account.
Carry-over arrangement
Arrangement to take a mortgage with you when you move within the period that your term has not yet expired.
Maisonette
A maisonette is a dwelling in a larger building, such as a condominium, where there are several floors present per dwelling.
Brokerage
Real estate brokerage company.
N
National Mortgage Guarantee
Guarantee fund that guarantees if the borrower ceases to pay the interest and principal associated with the mortgage loan. You can take out a mortgage loan with National Mortgage Guarantee. This makes a difference in the interest rate and the amount of the mortgage. A purchase price limit has been established for obtaining financing with a National Mortgage Guarantee. Above a certain purchase price, you cannot get National Mortgage Guarantee financing.
Nominal interest
The annual interest rate used by the companies without taking into account the additional costs and times of payment.
Nen-2580
The measurement instruction that almost all real estate agents use when determining the area of the property.
O
Under consideration are
Undertaking by seller’s broker to an applicant not to promote transaction with other applicants. Viewings by other interested parties do remain possible.
Conditions precedent
Valid reasons to cancel the purchase (or sale) of the house. Termination conditions are in the contract of sale. Examples of resolutive conditions: – obtaining a mortgage – obtaining the National Mortgage Guarantee – obtaining a housing permit – the outcome of an architectural study Decisive conditions only apply if they are in the law, or in the purchase contract.
Building insurance
This insures your home (not its contents) against fire, storm, lightning and other disasters. Required for taking out a mortgage.
Option
The right to trigger a purchase agreement by unilateral will. The one who has the right is not obliged to use it.
Notice
At the end of each fixed-interest period and when you sell your home, a mortgage can be cancelled. Sometimes this happens immediately, sometimes after a certain period of time.
Bridging credit
Loan to bridge the time between buying a new home and selling the old one. This involves using the excess value of the old house. Usually a bridge loan is taken out for up to 6 months.
Transfer tax
Tax levied on the transfer of a property/right on the purchase price excluding the amount included in the purchase price for movable property (see purchase deed which includes a breakdown for the property and movable property). Currently, the rate is 2%.
Death cover
Most mortgage providers mandate that the risk of death of the primary breadwinner be covered. When the main breadwinner dies, it can cause financial problems for the remaining partner. With term life insurance, an amount is paid out in the event of death. This amount is then used to pay off (part of) the mortgage.
Transfer
Re-closing (with a different or the same company) your current mortgage on better terms or a lower interest rate. If you stay with the same company you do not have to go to the notary again
Surplus value
The positive difference between the residual debt on your current mortgage and the value of your home at free sale. Based on excess value, you can increase your mortgage, such as to pay for a remodel.
Private sale value
Free of rent and use. Also called free sale value. The value of the property when you sell it under normal circumstances. The property is free of rent and use and thus is not rented to and occupied by another person.
Sublease
The sublease agreement is a lease in which the tenant leases a portion of its leased property back to another tenant.
Property tax
Property tax (OZB) is a tax levied by municipalities on owners and users of real estate.
Real Estate
Property
Other business space
Business space that is not in use as medium business space.
Acquisition costs
The landlord may charge acquisition fees for movable items such as carpeting and curtains. Tenant is under no obligation to take over these items and incur expenses for them.
P
Passing
The formal act in which a deed (sale of house, mortgage) is signed by both parties and the notary.
Leasehold
The name for a lease-like agreement in which agricultural land is given in use by the owner (lessor) to the lessee.
Plot area
The plot is the area of land belonging to the property.
Porch house
A porch is an often built-in space, completely open on the street side, in which the entrance to a building is located. Several homes have a common porch. Porch housing is housing built around a common stairwell. In general, porch houses are built mirrored, that is, the houses on the left side of the porch are internally the mirror image of those on the right.
Points system
With this system, the quality of a rental property is expressed in points. Based on these points, it can be determined what the maximum rent of the property may be. The point system does not apply to deregulated leases.
R
Right of mortgage
You give the right of mortgage to the lender when you take out a mortgage. If you default on repayments and your home is sold publicly, the lender has priority in claiming the proceeds.
Right of way
The right (easement) that the owner of a piece of land has to go over another’s land. The other has a duty to allow this and maintain the path. This right attaches to an immovable property and remains in place upon sale.
Efficiency
For your investments, you receive price gains and dividends; these items make up the return on your investment. The return on investments, measured over longer periods of time, is usually higher than the interest rate on a savings account, but you run the risk that prices will fall or companies will not pay dividends. So an investment can also have a negative return.
Fixed rate period
The period you agreed with the lender during which your mortgage interest rate remains unchanged. Normally, the longer the chosen fixed-rate period, the higher the interest rate.
Movable property
These are goods that the buyer can take over from the seller and are not already associated with the property.
S
Key Statement
This is made up if the actual delivery (handing over the keys) takes place at an earlier time than the legal transfer of ownership at the notary. Among other things, the buyer will have to ensure that upon actual delivery, the real estate is insured by him.
Service charges
Fees paid to the VvE. The Vve takes care of the maintenance of the property.
District heating
Heating system in which heat and sometimes hot water is carried by a system of pipes from a central point to homes in a neighborhood. The homes then do not have their own central heating boiler.
KFD Foundation
The Financial Services Quality Mark (SFKD) is proof of the quality of a financial services company. It means the firm meets higher standards than required by the Financial Supervision Act, especially in the areas of expertise and client satisfaction. An independent foundation regularly verifies that Hallmark holders meet these higher quality standards. For you as a consumer, it is not easy to choose the right and reliable intermediary. The quality of an office is often not immediately visible and recognizable. With the Financial Services Hallmark, you can be sure you are choosing quality.
Heating costs
Heating costs are the cost of heating and possibly hot water.
T
Appraisal
The making of a value judgment by an authorized person for a specific purpose (examples purpose: appraisal for financing, appraisal for inheritance upon the death of a natural person, appraisal for determining fair value for making an offer on a property for sale).
Top mortgage
The mortgage amount exceeds the home’s foreclosure value. Currently, you can only finance 100%.
Deed of conveyance
Official document prepared by the notary that officially transfers ownership of a house to a new owner. The deed of conveyance is also known as transfer deed.
Appraisals
Property valuation
Transport
The legal transfer of ownership at the notary.
V
Variable interest
If you do not opt for a fixed-rate period, you will face variable interest rates. You pay an amount per month depending on the interest rate.
Owners association (VvE).
If you own an apartment right, by law you are a member of the Owners’ Association (VvE). Together with the other owners, the VvE looks after the common interests in and around the apartment complex. The subdivision deed specifies what share you as an owner have in the entire building.
Provisional refund
Deductible mortgage interest can be offset with a provisional monthly refund. You get net more money in your hands every month.
Asking price
An invitation to bid.
Freehold – V.O.N.
If you buy a house “free on name” then real estate agency fees, notary fees and VAT or transfer tax are included in the purchase price. However, you must pay the mortgage deed fees and the fees for registration in the land registry.
Landlord
The landlord must make and leave the property available to the tenant for use.
Rental agent
Realtor working on behalf of the landlord.
Sales agent
Realtor working on behalf of seller.
W
Security deposit
The down payment to the buyer that may be included in the purchase contract. The amount usually corresponds to the penalty you will have to pay as a buyer if you cannot meet the obligations. The deposit can be paid with a bank guarantee.
Residential permit
In a number of municipalities – below a certain purchase price – a residential permit is required. A residence permit gives you the right to live in the house you bought, in a particular municipality.
WOZ value
The municipality determines the tax value of your property. This value is determined for the Valuation of Immovable Property Act (WOZ).
Security deposit
An amount deposited by the buyer (usually with the notary) as security that he will meet his payment obligations.
Housing Law
The Housing Act deals with the quality of the housing stock and the construction, use and demolition of housing.
Living area
The area of the house. Nowadays, all homes are measured using the NEN-2580 standard.
Z
Search
An assignment to assist in the search and purchase of a home for which the broker may charge a brokerage fee. The content of the assignment (what services are included in this assignment) depends on what the broker and the client agree upon.
Independent residence
A home with its own access and its own amenities (such as kitchen, toilet, etc.).
