Joint and Several Liability in Mortgage and Divorce in Amsterdam
In Amsterdam, with a mortgage, often two persons are jointly and severally liable, such as spouses who jointly purchase a home in the city. After divorce, this liability usually remains, unless a party obtains discharge via the Amsterdam District Court (Parnassusweg 220). This article discusses joint and several liability, the discharge procedure, and risks for the ex-partner. For free advice: Juridisch Loket Amsterdam, Vijzelstraat 77.
What does joint and several liability in a mortgage in Amsterdam entail?
Joint and several liability means that all co-debtors, such as ex-partners, are fully and individually liable for the entire mortgage debt. The bank can hold you or your ex accountable for 100% of the amount, even after separation. This applies to many Amsterdam properties with joint mortgages.
Example: You and your ex took out a mortgage of €450,000 in Amsterdam for a home in De Pijp. After divorce, your ex gets the home, but if he/she does not pay, the bank can hold you fully accountable – even if you already live elsewhere.
Legal basis in the Netherlands
Regulated in the Civil Code (BW):
- Article 3:266 BW: Joint and several debt allocation.
- Article 3:272 BW: Discharge option from joint and several liability.
- Article 3:273 BW: Exceptions to discharge.
Discharge procedure from joint and several liability in Amsterdam
Apply for written discharge with your bank. Use an indemnity agreement. Steps:
- Submit request: Letter to the bank requesting discharge. Mention the divorce settlement agreement.
- Bank consent: The bank may refuse if the ex is not solvent. Alternative: refinancing or new mortgage.
- Ex-partner consent: Ensure the ex can carry the mortgage alone. A notary in Amsterdam assists with the indemnity.
- Notarial deed and Land Registry: Prepare the deed and register it with the Land Registry. In case of dispute: proceedings at the Amsterdam District Court, Parnassusweg 220.
When does the bank refuse discharge?
Often in cases of:
- Ex-partner financially insolvent (check income test).
- Mortgage not repayable without second income.
- No collateral security for the bank.
Risks for the ex-partner in Amsterdam
Even with the property, the ex remains jointly and severally liable. Risks:
- Payer is held accountable: Bank claims full debt in case of default.
- Negative BKR registration: Harms future loans.
- Foreclosure of property: Sale in case of arrears, loss of equity.
Practical tips for Amsterdam
- Consult Juridisch Loket Amsterdam (Vijzelstraat 77) for intake.
- For proceedings: Amsterdam District Court (Parnassusweg 220).
- Notary required for deed; search locally via Royal Royal Notarial Profession Organization.
- Check mortgage conditions for fixed interest and penalty clauses upon transfer.