Personal Suretyship Rules in Amsterdam

In Amsterdam, a personal suretyship differs from a security deposit due to joint and several liability (art. 7:850 BW), particularly relevant given the high real estate prices in neighbourhoods such as the Jordaan or Zuid. The suretyship must be recorded in writing, with explicit mention of the maximum amount and duration, as upheld by the District Court of Amsterdam in recent cases. Local banks such as ABN AMRO in the Zuidas often require joint and several co-suretyship from partners for mortgages on Amsterdam canal properties. Spouses must both sign (art. 1:88 BW), which requires extra attention in the vibrant expat community of Amsterdam Oost. Limitations apply: no suretyship for consumer purchases without the right to advice, a point that the subdistrict court in Amsterdam strictly verifies. Discharge from suretyship is possible upon performance of the principal debt, with the Court of Appeal of Amsterdam assessing reasonableness based on local market developments. Practical advice for Amsterdam: always draw up a suretyship agreement with unilateral right of recourse and notification obligation, taking into account the rapid transactions on the housing market. In the event of bankruptcy of the principal debtor, often linked to Amsterdam startups, the right of recourse applies in accordance with the BW.