The Written Requirement When Buying a Property

Must a purchase agreement be in writing? When a residential property is sold, this can be done verbally or in writing. 

If the parties agree on the ‘essentials’ of the purchase, such as the price and the object, they are in principle bound to the agreement. However, for a private buyer, there is a written requirement which stipulates that the buyer is only bound to the purchase if it is documented in writing.

Offer and Acceptance

Before elaborating on the written requirement, it is important to note that an agreement is, in principle, reached through offer and acceptance. When one party makes an offer and the other party accepts it, an agreement is reached. A verbal agreement is, therefore, just as binding as a written agreement.

Written Requirement for Private Buyers

The written requirement of Article 7:2 of the Dutch Civil Code provides an exception to this principle. It stipulates that when a private buyer (who does not act in their profession or business; a consumer) buys a property, they are only bound to the purchase if it is documented in writing. The rationale behind this is to protect the private buyer against impulsive purchases.

Private Seller

The law does not provide a similar written requirement for private sellers. However, Dutch case law has established that a private seller can also invoke the written requirement when selling their property to a private buyer. If two private parties reach a verbal agreement, but the seller refuses to sign the purchase agreement, the private buyer cannot legally compel them to complete the purchase. There is also Dutch case law providing that a private seller can, under ­certain circumstances, successfully invoke the written requirement when selling their property to a professional buyer.

Professional Buyer/Seller

In 2011, the Supreme Court explicitly ruled that the protection of the written requirement of Article 7:2 DCC is solely intended for the protection of private individuals (consumers). A professional buyer or seller who acts in their profession or business cannot invoke this requirement. They are simply bound by a verbal purchase agreement.

Conclusion

A purchase agreement can be reached verbally or in writing. The written requirement provides an exception to this; a private buyer is only bound to a purchase if it is documented in writing. A private seller may, under certain circumstances, also invoke this requirement, whilst a professional buyer or seller cannot. If you are a private seller or are dealing with one and would like to know more about the written requirement, please contact our office for a no-obligation consultation. «

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