Reflection period when buying a house: what do you need to know?
Buying a home is a big step. That is why it is well regulated that private buyers in the Netherlands have a statutory reflection period. This reflection period offers the opportunity to think about the purchase at leisure, without having to give a reason to get out of the agreement. But how exactly does this work?
How long is the cooling-off period when buying a property?
The cooling-off period is three days. This is laid down in Article 7:2 of the Civil Code. Within this period, the buyer may dissolve the purchase agreement without giving reasons. This only applies to the purchase of a property by a private buyer, not by a company or a legal entity such as a BV.
When does the cooling-off period start?
The cooling-off period starts the moment the signed purchase agreement (also called the contract of sale or provisional deed of sale) has been handed to the buyer personally, or when it has been made known in another clear way (e.g. via e-mail if that has been agreed). The day of receipt does not count towards the deadline. It is three days, of which a minimum of two working days must be working days. If a public holiday or weekend day falls in that period, the cooling-off period is extended.
Example:
If you receive the purchase contract on Wednesday, the cooling-off period is Thursday, Friday and Monday (because Saturday is not a working day).
Does the cooling-off period also apply if you buy through a private limited company?
No, the legal cooling-off period only applies to natural persons not acting in the exercise of a profession or business. If you buy a house via a BV or as an entrepreneur for your business activities, you have no legal right to a cooling-off period. In that case, you are immediately bound by the purchase agreement, unless you contractually agree otherwise.
How often do buyers use the cooling-off period?
It regularly happens that buyers change their mind during the cooling-off period, especially in an overheated housing market where bids have to be made quickly. Exact figures vary from one estate agency to another, but it is estimated that 2-5% of buyers use their cooling-off period each year to abandon the purchase.
The reasons vary:
- Emotional doubt ("doesn't feel right after all")
- Financial uncertainty
- Unexpected information about the property or surroundings
- Hasty decision under bidding pressure
Why is the cooling-off period set at 3 days?
The three-day reflection period was introduced to protect buyers from impulsive or hasty decisions, especially in a purchase of this size. Three days was chosen as a reasonable period:
- It gives enough time to seek legal or financial advice
- It prevents sellers from spending too long in uncertainty
- It is in line with international and European consumer protection directives
- Three calendar days was deliberately chosen, with the requirement of at least two working days between. This ensures that the buyer has sufficient time and opportunity to be informed or to abandon the purchase
Summary
The statutory cooling-off period for home purchases is an important protection for private buyers. These three days give space to reflect and possibly abandon the purchase without legal or financial consequences. For entrepreneurs and legal entities, this regulation does not apply, so it is important to know the conditions under which you are buying.
If you have doubts or legal questions, always consult a notary or lawyer before signing.
