Deposit in Purchase Agreements Amsterdam

When purchasing a house in Amsterdam, the deposit serves as a down payment to secure the purchase agreement (art. 7:28 BW). In this city with high house prices and fierce competition, this is standardly 10% of the purchase price, which must be deposited with an Amsterdam notary within 14 days after signing. The purpose is financial coverage in case of dissolution due to financing problems – often an issue due to strict mortgage rules – or hidden defects in older properties around the canals. If the buyer fails to perform, the sum is forfeited to the seller, provided there is no default on the buyer's side. The notarial deposit arrangement, common with notaries in Amsterdam-South or Centrum, optimally protects both parties. Under suspensive conditions such as financing or building survey (essential for Amsterdam monuments), the sum is refunded. Specific advice for Amsterdam: thoroughly check the suspensive conditions, have an appraisal carried out by a local expert and be alert to the NVM market figures. In case of disputes, you can go to the Council for Legal Aid in Amsterdam or the subdistrict court in the palace on the Prinsengracht.