In this dictionary, you'll find a wide range of the most crucial terms and expressions that you should be familiar with when entering the housing market. Not only have we listed them, we've also endeavored to explain each term in context so you can see how they are used in practice. This will allow you to better understand when and why these terms appear as you explore your dream home.
We encourage you to use this dictionary as a reference throughout your home buying process. If there are any terms or concepts you would like further clarification on, you are always welcome to contact us. You can reach us by phone on 9393 0678 or by email at mail@hjaelptilhuskoeb.dk. We are here to answer your questions and provide the advice you need.
Keep in mind, however, that while the FAQ of Home Buying is a valuable resource, it cannot replace qualified advice. That's why we encourage you to consider getting professional help and advice from our team at Hjælp til huskøb. We're here to make your home buying journey as smooth and informed as possible.
A cooperative home is similar to a condominium in many ways, but there are some fundamental differences that you should know before buying.
Cooperative housing differs from the other types of housing we have in Denmark in that it is the cooperative housing association that owns the property. When you buy a cooperative home, you buy a share in the value of the association with an associated housing right - a cooperative certificate.
This means that cooperative housing is a more complex form of housing than a condominium or a villa. You get a home, but you also get an economic community with the other members of the cooperative housing association.
A cooperative housing association has bylaws that regulate the rules of the community. For example, you may not be allowed to have pets, you may be allowed to buy the share as a parental purchase or other rules that you need to be aware of before you sign the purchase agreement.
The cooperative housing association has taken out some loans, which you are liable for together with the other owners. Therefore, before you buy a cooperative home, you need to understand the statutes and finances of the cooperative housing association.
The practicalities of running the association and the property can be handled by the association itself, but often an administrator is responsible for paperwork or even maintenance on behalf of the association. if there is an administrator, they will typically charge a change of ownership fee.
As a cooperative owner, you have to pay a monthly housing fee to the cooperative housing association. The housing charge covers the association's costs for repayment of the loans taken out by the association as well as the operation and maintenance of the cooperative housing association's property.
The estimated technical price must be shown in the sales presentation when selling a cooperative property. The estimated technical price is a basis for comparison to the cash price of an owner-occupied property.
The estimated technical price is calculated by adding the deposit to the share of the cooperative's debt. This way, you can see the total price of the cooperative home, taking into account the purchase price and the part of the cooperative debt related to the share you are buying.
Usage costs are the costs associated with using a home. Usage costs are for example:
Utility costs are important to know as they have a direct impact on your finances and your house.
When you buy a home, you must transfer part of the purchase price to the seller's real estate agent and provide a bank guarantee approximately 6-8 days after the purchase agreement is signed. Your bank will help you with this.
When a bank guarantee is provided, the bank guarantees that the buyer will pay the purchase price on the day of takeover. The purchase price is transferred to a blocked account at the seller's bank, and the seller only receives the amount when the sale is finalized and you as the buyer have received the deed to the property.
The BBR owner notification is a document that shows the information about the property registered in the Building and Housing Register (abbreviated as BBR).
The information includes the property's year of construction, location, size, technical conditions (whether there is an oil tank, geothermal heating or other) etc. It is the owner's responsibility to ensure that the information is correct. Therefore, there may be a difference between what has been physically built on the property and what the municipality has knowledge of.
As a buyer, you should pay particular attention to whether there are any discrepancies between what is stated in the BBR and what has been built on the property. It's often the case that the seller has “forgotten” to tell the municipality about the woodshed, greenhouse or similar small buildings. There's nothing wrong with that as such.
Illegal building installations are even more problematic if they relate to the home. It can have major consequences for you as a buyer if it turns out that the conservatory or annex is not legally built.
The building percentage is the percentage of the plot that can be built on. It is typically 30% in residential areas and 15% in cottage areas. However, you should be aware that the building percentage can be either higher or lower. You can read about this in the local plan for the area or if there is an easement registered on the property.
When calculating the building density, the total area of the plot is used as a starting point, including any road areas. To find out how much you've built on the plot, you need to find the total area of the residential building. To this, add the area of the other buildings that exceeds 50m2.
It's always a good idea to contact your local authority if you're considering building more or completely new on your property. They are experts in the rules and local conditions that may affect your plans.
The term conditional sale is often used when a buyer and a seller sign a conditional purchase agreement.
The condition in the conditional purchase agreement is usually that the buyer can only buy the property once the buyer's own property has been sold. If the buyer sells their property within a set deadline, the buyer waives their condition and the deal is said to be final. The seller has the right to continue selling the property until it is sold.
If you as a buyer sign a conditional purchase agreement, there are some things you need to know:
Only you as the buyer can decide whether or not it's a good idea to enter into a conditional purchase agreement. It is possible to negotiate with the seller to stop the sales process when you enter into a conditional agreement. Find out if the seller is willing to do this by contacting the seller's real estate agent.
The condition in a conditional purchase agreement can also be that the seller will only sell if they buy another property. If the seller buys the other property within a set period of time, the seller waives their condition and the deal is said to be final.
When buying a home, it's a good idea to talk to your bank about your options. The bank will review your finances and issue a home purchase certificate so you can see what you can buy a home for.
TIP: Contact your bank even before you've found your dream home, so you know what you can afford.
Boligsiden.dk displays all homes for sale with real estate agents in Denmark. The site contains a large amount of statistics about the properties on offer and about the housing market in general.
Boligsiden.dk is a great place to search for housing. However, not all properties are always publicly for sale on Boligsiden.dk.
It's a good idea to contact the local real estate agents in the area where you're looking for a home to get on their buyers' list. Many real estate agents have homes for sale where the owner does not want it to be advertised publicly. This is often referred to as 'drawer sales' or 'drawer sales'. If you don't approach the real estate agent in person, you risk missing out on your dream home simply because you didn't know it was for sale.
En byggetilladelse er nødvendig, når du vil bygge nyt hus, bygge til et eksisterende hus, inddrage noget nyt til beboelse eller opføre sekundær bebyggelse ud over 50 m2 på din grund. Det kan også være nødvendigt med en byggetilladelse for at lovliggøre noget eksisterende byggeri, som ikke tidligere er godkendt af kommunen.
Byggetilladelsen er afgørende for at sikre, at byggeriet er i overensstemmelse med bygningsreglementet og andre gældende love og regler, herunder sikkerheds- og miljøbestemmelser. Ansøgningen skal indeholde en række oplysninger, herunder detaljerede tegninger og specifikationer af byggeriet, en beskrivelse af byggematerialer, planer for eventuelle forandringer i terræn, og alle andre relevante oplysninger omkring byggeriet. Det er også almindeligt at skulle betale et gebyr for at få udstedt en byggetilladelse.
Det er ofte en god ide, at alliere sig med en professionel rådgiver eller at kontakte kommunen for at få hjælp med byggeansøgningen.
It's a technical building inspection when the person who prepares the condition report reviews the property. However, you may also come across the term in other contexts.
To get a full overview of the property's general physical condition, renovation options and future maintenance costs, as a buyer you have the option of having a building surveyor come out and carry out a technical inspection of the property. The building surveyor can explain to you whether the condition report is accurate for the property and, not least, what the content of the condition report means for you as a buyer.
Denmark is divided into 3 zones:
If you find a home located in an urban zone, it will be subject to the same rules as most other homes in Denmark. In the urban zone, we live in areas zoned for public purposes, industry, etc.
In the urban zone, the building regulations apply to all new buildings. You should therefore be aware that there are requirements for the building's location on the plot, size, height and many other things. You should also be aware that there may be a local plan for the area or for the property, which means some restrictions on the use of the property.
It's a good idea to ask the municipality about the possible uses of the land if you're planning an extension/conversion.
In some transactions, a disposal date may be agreed before the takeover date. If a disposal date is agreed, it means that the parties have agreed that the buyer can dispose of the property (get the keys and move in) before the legal takeover takes place on the takeover date.
The disposal date is the date when the property is handed over to you as the new owner. In other words, it's the date you take over the keys to the property. At the same time, the rights and obligations for the property are transferred to you.
As the buyer, you will be responsible for utility costs and house insurance from the date of transfer and onwards. The buyer only has to deposit the purchase price (pay for the house) on the takeover date. This means that you basically have “free rent” in the house (or at least very limited rent) if you get a disposition day.
The seller must pay for the costs of ownership up to the day of takeover.
A property data report is part of the documents required for a real estate transaction. Your buyer advisor will go through the property data report in detail and compare its contents with the other documentation on the property.
The Property Data Report contains a large amount of information about the property (approximately 50 items). See examples of the information:
In Denmark, there are 2 types of property tax paid for owning real estate.
Both are paid via your withholding tax statement. Therefore, it is extremely important that you change your tax assessment when you take over a new home.
As a buyer, you can find the amounts to be paid in land tax and property value tax in the statement of ownership costs in the sales statement. Here you can see what you have to pay on an annual basis.
When you own a property that you use yourself, you must pay a tax to the government, which is calculated based on the public property value (which is the public assessment). The collection of the property value tax you have to pay is calculated automatically via your tax return.
The common ownership of a property divided into condominiums is exercised through the owners' association, of which all owners must be members. The owners' association is responsible for the common operation and maintenance of the property. As an owner, you pay your share of the running costs through what is called common expenses. The common expenses in a condominium association are usually distributed based on the distribution figure.
The distribution figure is set when the condominium was established and is usually calculated according to the size of the condominium or cooperative. The distribution figure is stated in the condominium association's statutes or in the sales statement.
A condominium is an independent property that is typically part of a larger property, usually a multi-story building. Each condominium owner has control over their own property. The owner of a condominium directly owns the apartment itself, while the land, stairs and other common building elements are jointly owned by all owners.
As a member of the condominium association, you have the right to vote at the general meeting, where decisions are made about the operation and administration of the property. When you enter into an economic community with the other owners in the owners' association, it is important to read about the rules of the community. The association's bylaws regulate the relationship between the owners and are important in relation to e.g. rental options, whether you can keep pets, etc.
When you buy a condominium, you usually have to provide security to the condominium association for payment of your share of the common expenses. This is done either by registering a mortgage on the condominium as security for the condominium association or by registering a mortgage in the statutes. If the security is a mortgage, additional costs will be incurred in connection with the transaction, as a change of debtor must be made to the mortgage.
A condominium is an independent property that is typically part of a larger property, usually a multi-story building. Each condominium owner has control over their own property. The owner of a condominium directly owns the apartment itself, while the land, stairs and other common building elements are jointly owned by all owners.
Joint ownership is exercised through the owners' association, of which all owners must be members. The owners' association is responsible for the joint operation of the property, and owners pay their share of the common expenses. The common expenses in a condominium association are usually distributed based on the distribution figure. The distribution figure is determined when the condominium was created and is usually calculated according to the size of the condominium or cooperative.
When the surveyor divides the property into condominiums, a condominium map is drawn up for each individual apartment. The condominium map is a document that contains information about the outline and area of each apartment.
When you buy a condominium, the real estate agent will often provide you with a condominium form that contains relevant information about the condominium and the owners' association. The condominium form is filled out by the property manager in connection with the sale of the condominium.
A condominium association may have set up a basic fund, which is a savings fund set up for a specific purpose (savings for major common expenses in the association).
A mortgage is a mortgage that the owner of a property issues to himself. Owner mortgages are often used as security for bank loans as they cannot be used as security for mortgages.
In the past, it was cheaper to take over the seller's mortgage as you could save some registration costs. With today's rules, you still save costs, so the reason why the buyer takes over the seller's mortgage is that it's easier than having to register a new mortgage.
When you buy a house, holiday home, condominium or abandoned rural property under 2 hectares, the seller has the option of using what is commonly known as the HE scheme or house inspection scheme. The HE scheme means that the seller disclaims responsibility for hidden faults and defects in the building.
The owner change insurance is part of the home inspection scheme and protects you against hidden defects and deficiencies in the property. You will be provided with a quote for a homeowner's insurance as part of the purchase documents. You do not have to take out the insurance offered, but you can choose where you would like to take out the insurance. Regardless of where you take out the change of ownership insurance, the seller pays ½ of the premium for the insurance offered.
The insurance covers any hidden damage to the property that is not listed in the condition report, electrical installation report or that you were made aware of at the time of taking possession of the property. As a buyer, you should always take out homeowner's insurance as it gives you extra security as a buyer.
NOTE: As a buyer, you should take out owner's replacement insurance as soon as possible after the deal is finalized. This has the advantage that you can be sure that you have taken out the insurance. The change of ownership insurance must first be paid in the weeks leading up to the takeover date.
Owner expenses are the costs associated with owning a property. In the sales summary, there is a calculation of the annual and monthly owner costs.
The typical owner expenses include:
Owner costs must be correctly disclosed in the sales statement so that both you and your bank can take owner costs into account when planning your home finances.
When you buy a house, holiday home, condominium or abandoned rural property under 2 hectares, the seller has the option of using what is commonly known as the HE scheme or house inspection scheme. The HE scheme means that the seller disclaims responsibility for hidden faults and defects in the building.
The electrical installation report is prepared by an authorized electrician who reviews the property's electrical installation. The electrical installation report is valid for 12 months.
The electrical installation report is an assessment of the condition of the electrical installations and any damage that the electrician can detect by checking the building's electrical installation. The electrician grades the faults he finds. As with the condition report, it's also very important to read the electrical installation report carefully to detect any illegal electrical installations for which you, as the buyer, take responsibility. Remember to also review the section with the seller's information about the property's electrical installations. If there are illegal electrical installations, it can be expensive to have the installations legalized. Information about illegal electrical installations is a good negotiating point when buying the property.
It is mandatory for the seller of a home to present a valid energy report when selling. Energy reports are valid for 10 years from the date of preparation, so check when the energy label on the property you are looking at was prepared. A lot can happen with energy prices since the energy label was prepared.
The energy report makes a building's energy consumption visible, just like the signs you see on white goods.
The energy report also provides an overview of the energy improvements that are worthwhile to implement in the home.Please note that the calculated heating costs from the energy label are included in the sales presentation. As the consumption is calculated based on a standard, it may differ from what you and your family use. There may also be a difference in the seller's annual consumption on the property. It's perfectly normal for there to be discrepancies.
However, you should save the energy label and read it if you plan to improve or remodel your new home. The energy consultant has made some calculations that show what improvements are worthwhile. Some of the improvements cost very little money, so there can be easy money to save.
In Denmark, the law states that you as a buyer have a right of withdrawal of 6 business days after the purchase agreement has been signed by both you and the seller. The deadline starts the day after you have been notified that the seller has also signed the purchase agreement.
The cooling-off period runs over 6 business days. A business day is not Saturdays, Sundays, public holidays or Constitution Day.
The deadline expires at midnight on the day in question. It costs 1% of the purchase price if you use your right of withdrawal.As a buyer, you should be very aware that the money must be paid to the seller or the seller's real estate agent before the deadline
If you have regretted your purchase, you should contact your buyer advisor as soon as possible. If your buyer advisor has not yet approved the deal, the buyer advisor can decline to approve the deal on your behalf. This is a free way to cancel.
Read more about the right of withdrawal for home purchases in this article.
A holiday home is a property that can be used primarily for vacation purposes during the summer months or during holiday periods in the winter. As a holiday home owner, there are restrictions on how much you can use your holiday home during the winter period from November to March.
Holiday homes are often smaller than year-round homes and are often built with a wooden exterior. Holiday homes are also often less insulated than year-round homes.
If you want to rent out your holiday home, there are special tax rules for renting it out. It may be a good idea to get an estimate of the potential rental income the house could bring in.
If you contact one of the local rental agencies, they will usually be able to help you get an overview of the finances you can expect from renting out your vacation home.Holiday homes are most often located in a cottage area, but are also found in both urban and rural areas. A holiday home area is characterized by the fact that all homes must be used for holiday purposes and are subject to the use restrictions in the Planning Act.
Holiday homes located outside holiday home areas are not subject to the same restrictions on use. However, you should contact the municipality to be sure of the rules that apply to the holiday home you're looking at.
A homeowners' association is an association for the owners of land in a specific area or on a specific road. The association is usually responsible for the operation and maintenance of roads, green areas and playgrounds. The homeowners' association can set bylaws on how to “behave” as a landowner.
In some landowner associations, membership is compulsory and in others, membership is voluntary. If membership is mandatory, it will be mentioned in an easement or a local plan that is registered on the property.
When you buy a home, you should be aware of the homeowners' association's bylaws, as there may be some restrictions that may affect you and your ownership of the home.
As a homeowner, you have a duty to abide by the rules and regulations of the homeowners' association - even if you think they are unreasonable for you. In a homeowners' association, decisions are made at a general meeting, where you as a member have the right to vote, not least the opportunity to make your influence felt.
The land tax is paid to the municipality and is calculated based on the public land value. The land tax is charged via your advance payment statement and is thus paid automatically.
As a buyer, you can find the land tax in the statement of ownership costs in the sales statement. Here you can see what is payable on an annual basis.
When you buy a house, holiday home, condominium or abandoned rural property under 2 hectares, the seller has the option of using what is commonly known as the HE scheme or house inspection scheme. The HE scheme means that the seller disclaims responsibility for hidden faults and defects in the building.
The home inspection scheme is designed to protect against unforeseen financial surprises when buying and selling homes that are or will be used for residential purposes. For the transaction to be covered by the home inspection scheme, the seller must ensure that a condition report and an electrical installation report are prepared. In addition, the seller must submit an offer for a change of ownership insurance and offer to pay ½ of the premium on the insurance presented.
When the seller chooses to use the home inspection scheme, the seller is released from liability for hidden defects and deficiencies in the property.
As a buyer, it is your choice whether you want to take out insurance or not. In most cases, however, it's a good idea to take out homeowner's insurance so you're covered if it turns out that there are serious defects in the purchased property.
Home insurance is also often referred to as fire insurance. As a homeowner, you have the option to add a wide range of optional extras to your home insurance. The optional covers vary from company to company. The most common optional covers are hidden pipe and socket cover, rot damage, fungal/insect infestation, storm damage, socket damage, etc.
As the buyer, it is your responsibility to take out house insurance before the day of takeover/disposal, as the real estate agent is not allowed to hand over the key to you if the insurance has not been taken out. You are free to choose where you would like to take out house insurance.
In the sales pitch, you'll come across the purchase cash requirement calculation. The real estate agent should make the calculation for you, so you can see the amounts to be paid in connection with the purchase.
The cash requirement includes:
However, the cash requirement does not cover all the costs of buying a home. As a buyer, you should be aware that there will also be costs for: buyer advice, bank guarantees, registration of mortgages, hedging and your own construction advisor.
The cash price is the price a property can be bought for without taking over the seller's loan.
It is a legal requirement in Denmark that real estate agents must offer all properties at an estimated cash price. Even if a property is offered at a cash price, it is still possible for you as a buyer to take over one or more of the seller's loans. You should talk to your bank to see if this is an advantage for you and if they will allow you to do this.
At the various real estate agents, you have the opportunity to be registered in a buyer directory if you are looking for a home. The real estate agent will then send you an email as soon as there is a property for sale that matches your requirements. It is free of charge to be registered in the real estate agent's buyer directory.
The buyer list is sent out when the real estate agent puts a new property for sale online. The administration of the buyer list is automated by most real estate agents and is based solely on your criteria. So be careful not to search too narrowly when you are added to the real estate agent's buyer list.
TIP: Contact the real estate agents personally in the area you are looking for a home in. Many real estate agents have homes for sale where the owner does not want it to be advertised publicly. This is often referred to as drawer sales or sales from the drawer. If you don't approach the real estate agent in person, you risk missing out on your dream home simply because you didn't know it was for sale.
The purchase agreement is the agreement between the seller and the buyer regarding the purchase of the property. The purchase agreement is drawn up by the seller's real estate agent and is based on a number of standard provisions that are used in all transactions involving private homes in Denmark.
As a buyer, you should pay particular attention to the content of section 11 of the purchase agreement. Firstly, your advisor's approval of the agreement MUST always be reserved. If this reservation has been made, you can safely sign the purchase agreement, as the agreement is not final until your advisor has approved the content. If you and your advisor cannot approve the content, you are not bound by the deal and you do not have to pay anything to the seller.
It is also in section 11 that the real estate agent makes agreements between you and the seller for your particular deal. The real estate agent is employed by the seller to look after the seller's interests. Therefore, it is often the case that the real estate agent tries to impose increased liability or costs on you for things that you have not been informed about during the course of the transaction.
For example, liability for pollution from an oil tank, liability for illegal buildings or building fixtures, documentation for the legality of a wood-burning stove or sewer separation. On the surface, these seem harmless issues may seem harmless, but they potentially hide increased risk and extra costs for you as a buyer.
If you are in doubt about whether a correct advisor reservation has been inserted in your purchase agreement or about the content of section 11 of the purchase agreement in general, you are always welcome to send the purchase agreement to me for a non-binding review. Simply attach the purchase agreement and send it to me at mail@hjaelptilhuskoeb.dk. You will receive a reply every day within 2 hours.
A country estate can be either a disused country estate, a light property, a recreational farm or an agricultural property. The property can be either agricultural or non-agricultural. All properties with a land area of more than 2 Ha (20,000 m2) are listed as agricultural property in the land register.
If the property is agricultural, the home inspection scheme cannot be used unless the purchase agreement is conditional on the agricultural obligation being lifted. If the property is not subject to agricultural duties, the home inspection scheme applies.
In connection with the purchase of a rural property, an overview is created:
In all cities in Denmark, an administrative contamination designation called slightly contaminated soil has been introduced. This area classification is based on an empirical estimate of the correlation between an area's history and soil contamination. There is no knowledge of the actual degree of contamination on the individual properties within the area classification.
If your property is located within a classified area, it is not at all certain that your land is slightly contaminated. If your land is classified as slightly contaminated, it has no bearing on a later sale of the property.
In a real estate transaction, there are usually some movable goods (also called accessories) included in the deal. This could be white goods in the kitchen, a washing machine, tumble dryer or other items. You can find the exact list of items included in the property deal in the sales list under the heading “ACCESSORIES”.
For holiday homes, it's common for all contents to be included in the sale. This also applies to garden tools and garden furniture. You can find out more by looking in the sales list under “ACCESSORIES”.
The white goods included in the sale must of course be working on the day of takeover. If they don't work, you as the buyer are entitled to demand that the seller provides a replacement of a similar age and condition.
Therefore, remember to check that the appliances included in the sale are working on the day of takeover. If anything does not work, you must complain to the seller immediately.
Many properties are or have previously been heated with oil. The oil is stored in an oil tank on the property, which was either buried, above ground or located inside the home.
The oil tank was delivered with a tank certificate when it was installed, which includes the manufacturer's information about the production year and approval number. The approval number is a code that indicates whether the tank is protected internally or not, for example, which affects the tank's maximum service life.
All oil tanks must be replaced within a statutory deadline. The length of the deadline depends on several factors, including material, corrosion protection, etc. The oil tank must be decommissioned or removed from the property before this deadline.
An underground oil tank that is taken out of service is usually decommissioned. Decommissioning an oil tank means that the oil tank is emptied of residual oil and the oil tank's pipes are then blocked off so that no oil can be refilled. If there is a decommissioned oil tank on the property, the real estate agent should make you aware of this.
Another way to decommission an oil tank is to remove it from the property. If the oil tank is removed, the problem is also removed from the property. Therefore, this is clearly the best option if you need to remove an illegal oil tank.
The oil tanks you need to pay special attention to as a buyer are the underground oil tanks. You don't know what's happening underground, which is why there is the greatest risk of contamination from an underground oil tank.
When you buy real estate in Denmark, the purchase agreement you enter into with the seller must include a takeover date.
The takeover date is the date on which the property is handed over to you as the new owner. In other words, it's the date you take over the keys to the property. At the same time, the rights and obligations for the property are transferred to you.
In some transactions, a disposition date may be agreed before the transfer date. If a disposition date has been agreed, it means that the parties have agreed that the buyer can dispose of the property (get the keys and move in) before the legal takeover takes place on the takeover date.
As the buyer, you will have to pay the utilities and house insurance from the disposition date until the takeover date. The buyer only has to deposit the purchase price (pay for the house) on the takeover date. This means that you basically have “free rent” in the house (or at least very limited rent) if you get a disposition day.
The seller must pay for the owner's expenses up to the takeover date.
A mortgage is a document that is registered on a property. The mortgage gives the lender security in the property. If the borrower does not pay the loan, the creditor can sell the property to recover the debt. When you take out a mortgage, a mortgage is registered on the property as security for the loan. There are differences in how much of the purchase price you can borrow from a mortgage company. For ordinary homes, you can borrow a maximum of 80% of the purchase price in mortgage credit. For holiday homes the limit is 75% and for land the limit is 40%. The buyer often takes out a bank loan for the remaining part of the purchase price, which is in addition to what you can borrow from the mortgage bank. As security for the bank loan, the bank takes a mortgage, if one has been registered on the property. A mortgage is a mortgage that the owner of a property issues to himself. It's a smart way to provide security as the mortgage can be reused once the loan it secures has been repaid. You may also find that a tax mortgage has been registered on the property. A tax mortgage is an indication that a registration fee has been paid in the past, which you can benefit from when taking out a loan. For example, if there is a registered tax mortgage of 500,000, you will not have to pay registration fees on the first 500,000 you need to register security for.
Radon can be a problem in some houses and in some areas of Denmark. Radon is a naturally occurring, radioactive gas that can enter the house from underground.
Radon is odorless and cannot be seen or tasted, but it can be harmful to your health with prolonged exposure,
and is a contributing factor in around 300 cases of lung cancer per year. There are approximately 350,000 houses in Denmark that are estimated to have high radon levels.
Radon comes from the ground under the house. The condition and construction of your home affects how much radon is in your house. Most radon enters houses through cracks and crevices in foundations, living room floors and concrete decks, basement floors, exterior basement walls and leaks at pipe penetrations in foundations, etc.
You can measure the radon level in your home with a radon meter. To reduce radon levels, improve ventilation and seal cracks in foundations and leaks at pipe joints.
Radon levels are generally higher in basements and ground floors where there is direct contact between floor and ground.
Radon protection has been a legal requirement in new buildings since 1998.
A house purchase is usually financed with a combination of a mortgage and a bank loan. The rules for financing homes in Denmark are that you can usually borrow up to 80% of the purchase price from a credit union as a mortgage loan (75% for holiday homes and 40% for building plots).
A mortgage loan is the cheapest form of financing when buying real estate. There are several different options for financing your home purchase with a mortgage loan. You can arrange your mortgage to reflect your wishes and needs. It is possible to combine all types of mortgage loans with and without interest-only periods. Your options depend on your financial situation and the property you buy.
The reimbursement statement is a detailed statement of ownership costs broken down by ownership period. The purpose of the reimbursement statement is that each party pays for their own ownership period. The accounts are settled with the acquisition date as the effective date.
In the reimbursement statement, items such as change of ownership insurance, property taxes, renovation scheme, chimney sweeping, any oil inventory, membership fees for the homeowners' association, etc. are usually adjusted.
The refund statement is usually prepared up to 30 days after the takeover date. It is important to carefully review the refund statement to ensure that all expenses and income are fairly divided between buyer and seller.
The sales presentation is a presentation of the property that the real estate agent must prepare for you as a buyer so that you can see what kind of property you are buying. The sales presentation contains all the facts about the property, such as the size of the house and plot, cash price and ownership costs.
There are a number of requirements for what the sales presentation must contain and which the real estate agent makes sure it contains. Therefore, as a buyer, you should read the content of the sales presentation carefully and check if anything seems unclear.
According to the law, all information in the sales description must be correct. If they are not, the seller or the seller's real estate agent may be held liable for incorrect or misleading information.
A co-ownership agreement is an agreement made between people who want to own a property together. A co-ownership agreement is also known as a co-ownership contract or co-ownership agreement.
You should make a co-ownership agreement if you are buying real estate with someone you are not married to. If you are married, co-ownership is governed by the Marriage Act. The same rules do not apply to unmarried cohabitants, which is why it will be very important to draw up a co-ownership agreement as unmarried people.
A cohabitation agreement ensures that there are clear agreements and guidelines for cohabitation. It sets out ownership shares, financial obligations, maintenance responsibilities, decision-making processes and options for sale. The co-ownership agreement should help avoid misunderstandings and conflicts between owners.
A co-ownership agreement should include provisions for how the property can be sold or divided if an owner wants to leave the co-ownership. This provides clarity and agreement around the process and helps avoid conflicts related to the end of cohabitation.
It's extremely important to have your buyer's advisor help draft a co-ownership agreement that fits your specific needs and ensures that your interests and rights are protected.
Some sellers of real estate save the cost of a real estate agent by selling the property themselves. This is called self-selling. Some sell the property without legal advice and some sell the property through one of the various self-selling solutions available. In this situation, the seller may have received more or less legal help in the transaction.
As a buyer of a self-selling home, there is a great need for legal advice in connection with the transaction. You should have a professional on your side who can make sure that the legal consequences of the purchase are clarified before you are bound by the deal. Make sure you have an advisor disclaimer inserted in the purchase agreement, as it won't be binding on you until your buyer's advisor has approved the content.
When you buy a home, one or more easements may be registered on the property. As a buyer, you should be aware that you are bound by these easements.
Easements can limit or expand your options for using the property. They may stipulate that the house can only be a certain height, that only hedges can be planted, or that a tree house cannot be built on the property. Easements can also give you as the owner of the property certain rights in relation to the use of common areas, travel on private roads or similar.
As a buyer, it's therefore important to get an overview of what the registered easements mean for your use of the property. The real estate agent will tell you if there are any registered easements in the sales summary, but behind the headline there can be both good and bad news.
That's why you should always make sure to check if there are any restrictions on your use of the property by reviewing all easements on the property.
A holiday home is a property that can be used primarily for vacation purposes during the summer months or during holiday periods in the winter. As a holiday home owner, there are restrictions on how much you can use your holiday home during the winter period from November to March.
Holiday homes are often smaller than year-round homes and are often built with a wooden exterior. Holiday homes are also often less insulated than year-round homes.
If you want to rent out your holiday home, there are special tax rules for renting it out. It may be a good idea to get an estimate of the potential rental income the house could bring in.
If you contact one of the local rental agencies, they will usually be able to help you get an overview of the finances you can expect from renting out your vacation home.Holiday homes are most often located in a cottage area, but are also found in both urban and rural areas. A holiday home area is characterized by the fact that all homes must be used for holiday purposes and are subject to the use restrictions in the Planning Act.
Holiday homes located outside holiday home areas are not subject to the same restrictions on use. However, you should contact the municipality to be sure of the rules that apply to the holiday home you're looking at.
The deed is the document that secures rights over a real estate property. The deed is prepared based on the agreements in the purchase agreement.
West of the Great Belt, it is usually the seller's real estate agent who prepares the deed and ensures that it is signed by the seller and buyer. If you live east of the Great Belt, it's usually the buyer's advisor who prepares and registers the deed.
The deed has several functions. Firstly, it ensures that the owner is the only person with rights to the property. Secondly, the deed also ensures that the previous owner's creditors cannot attach the property. This ensures that you are not stuck with the previous owner's debt in the property.
When the deed is registered, a registration fee must be paid to the state. The registration fee is usually paid by the buyer in a real estate transaction. How the costs are divided in your particular transaction is determined in the purchase agreement. Most often it is the buyer who pays the registration fee. You can see the amount in the “Cash requirements for purchase” section of the sales statement.
The real estate agent makes a calculation of what it costs to live in the property in the sales presentation. The calculation is shown in the sales presentation as gross and net. Gross is the monthly payment before tax, while net is the monthly payment after tax.
The standard financing is statutory and consists of:
TIP: As a general rule, you can get an idea of whether you can afford the home by taking the net cost and adding it to the cost of ownership per month. This will give you an idea of what it costs to live in the home per month.
In a real estate transaction, there are usually some accessories (also called chattels) included in the deal. This could be white goods in the kitchen, a washing machine, tumble dryer or other items. You can find the exact list of what items are included in the property deal in the sales summary under the heading “ACCESSORIES”.
For holiday homes, it's common for all contents to be included in the sale. This also applies to garden tools and garden furniture. You can find out more by looking in the sales list under “ACCESSORIES”.
The white goods included in the sale must of course be working on the day of takeover. If they don't work, you as the buyer are entitled to demand that the seller provides a replacement of a similar age and condition.
Therefore, remember to check that the appliances included in the sale are working on the day of takeover. If anything does not work, you must complain to the seller immediately.
When you buy a house, holiday home, condominium or abandoned rural property under 2 hectares, the seller has the option of using what is commonly known as the HE scheme or house inspection scheme. The HE scheme means that the seller disclaims responsibility for hidden faults and defects in the building.
The seller has had the condition report prepared by a certified building expert who inspects the property from basement to attic. The condition report must be a maximum of 6 months old when you receive it. Otherwise it is no longer valid.
The condition report is an assessment of the condition of the property and any damage that the building surveyor can see with the naked eye. The condition report gives you an overview of the condition of the house, but it does not provide any information about the cost of repairing the damage.
Remember to be critical but realistic when reviewing the condition report. There's no point getting lost in the damages mentioned in the report. You're buying your next home, not just the damages mentioned in the condition report.
The Land Registry keeps track of who owns what real estate in Denmark. It is an official register that also keeps track of rights, mortgages, ownership and other legal matters regarding real estate.
The land registry is an important source for verifying ownership, investigating any encumbrances / easements or mortgages in connection with a real estate transaction. You can access the land registry system with MitId and once the property has been found, you can download easements etc. directly from the system.
In connection with the registration of deeds, mortgages, condominium agreements, changes to security for the owners' association, etc. a fee must be paid to the state. This tax is called a registration fee, stamp duty or registration fee.
For real estate transactions, the seller typically pays to have the deed drawn up and the buyer pays the registration fee it costs to have the change of ownership registered.
The registration fee for the registration of a deed is calculated as follows:
1) A fixed fee of DKK 1,850.
2) A variable fee of 0.6% of the purchase price.
The registration fee for taking out a loan in real estate is calculated as:
1) A fixed fee of DKK 1,825.
2) A variable fee of 1.45% of the principal amount of the loan.
Registration fee for registration of condominium agreements / change of security for the owners' association etc.
1) A fixed fee of DKK 1,850
If the owner of a property fails to make payments to the lender who has registered a security interest in the property, the property can be foreclosed. A foreclosure is often a last resort for a mortgage holder, as there is a risk that the loan and costs may not be fully covered at the foreclosure sale.
If you are considering buying a property at a foreclosure auction, you should investigate your options to get advice before you buy the property. A foreclosure auction is very different from a normal transaction. It can therefore be tempting to buy a property at a much lower price than it would cost in the open market.
At a foreclosure auction, there are some pitfalls that the buyer should be aware of. Firstly, you buy the property as is and as it is on the day of the auction. This means that all faults and defects are your responsibility as the buyer. Secondly, you need to clarify whether there are any other easements or rights of use that you must respect as the owner of the property. Thirdly, paying the purchase price is a lot more complicated than in a normal transaction. You need to contact and coordinate the payment of the purchase price with the property's creditors.
If you are considering buying a foreclosed property, contact Help to Buy at 93930678 to find out how we can help you complete your purchase safely.
When you buy a home, you usually need to transfer part of the purchase price to the seller's real estate agent approximately 6-8 days after the purchase agreement is signed. Your bank will help you with this.
At the same time as your bank transfers the down payment, your bank must also provide a bank guarantee to the seller for the rest of the purchase price.
The seller will not receive the amount until the sale is finalized and you as the buyer have received the deed to the property.
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