General consumer terms and conditions for Real Estate Services

These are the general terms and conditions of the Dutch Association of Real Estate Agents and Property Valuers (NVM). Here you can read about the rights and obligations of your real estate agent and yourself. These conditions were established in consultation with the Vereniging Eigen Huis (Association of Homeowners) and the Consumentenbond (Consumer Association) within the framework of the Self-Regulatory Coordination Group of the Social and Economic Council. They came into effect on September 1, 2018.

Article 1 When do these conditions apply?

These general terms and conditions apply to every service agreement that a private client enters into with a real estate agent.

Article 2 What do certain terms mean?

In these general terms and conditions:

Private client: the principal, a natural person, who is not acting in the course of a profession or business (consumer).
Real estate agent: a real estate agent or valuer affiliated with the NVM, or the business of a real estate agent or valuer affiliated with the NVM. A valuer does different work than a real estate agent. A real estate agent represents the interests of his client. A valuer is impartial. His work is to estimate and report in writing on the value of real estate. Because valuers must also adhere to these conditions, ‘real estate agent’ also means ‘valuer’ insofar as the nature of the provisions does not prevent this.
Fee: the compensation that the consumer pays to the real estate agent for his services, excluding additional costs. In practice, the fee is often called ‘commission’ or ‘honorarium’.
In writing: this also includes via e-mail.

Article 3 How do the real estate agent and you arrange the assignment?

The real estate agent documents the assignment in writing. He indicates that these general terms and conditions apply.
The assignment must include at least a clear description of the services, the fee, and the costs. If you later instruct the real estate agent to perform other or additional services, the real estate agent will confirm this to you in writing, including the price agreements for these services. The real estate agent may use a price list with an overview of his fee rates and costs to third parties.
The fee and costs in the assignment include VAT.
If you accept the real estate agent’s offer, there is an assignment. In case of a difference of opinion, the real estate agent must be able to demonstrate that you have accepted the offer. If he cannot, you do not have to pay the real estate agent anything.
You will receive these general terms and conditions with the real estate agent’s offer.

Article 4 Do you have time to reconsider?

In some cases, you have a statutory cooling-off period of fourteen days during which you can withdraw from the assignment. The assignment states whether you have a cooling-off period or not.
If, according to the law, you are entitled to a cooling-off period and the real estate agent has not informed you about this, the cooling-off period will be extended to a maximum of one year after you have given the assignment. If you later receive the information, you will receive a cooling-off period of fourteen days from that moment.
If you want to dissolve the assignment within the cooling-off period, you must notify the real estate agent in writing within the cooling-off period. You may use a form provided by the real estate agent for this purpose.

Article 5 What obligations does the real estate agent have?

The real estate agent carries out the assignment carefully and with expertise. He represents your interests.
The real estate agent keeps you regularly informed of progress.
The real estate agent is obliged to adequately insure his liability for damages and to keep it insured.
The real estate agent complies with legal provisions when processing personal data.
The real estate agent may not act for both the seller and buyer of the same property. The real estate agent may also not act for both the tenant and the landlord of the same property. In such a case, the real estate agent must consult with his clients as soon as possible and suspend or terminate one of the assignments (see Article 15).
The real estate agent may not enter into an agreement on your behalf unless you have given written authorization for this.

Article 6 What obligations do you have?

You provide the real estate agent with all information he needs to carry out the assignment.
Unless you agree otherwise in writing, you may not undertake activities that could hinder the real estate agent in fulfilling his assignment. For example, you may not use another real estate agent.
You enable the real estate agent to fulfill his obligations under the WWFT (Money Laundering and Terrorist Financing Prevention Act) and any other legal obligations.
If your property has been sold and the buyer invokes a dissolving or suspensive condition in the purchase agreement or invokes dissolution within the statutory cooling-off period, you must immediately notify the real estate agent in writing.

Article 7 What activities does the real estate agent perform?

The real estate agent performs the activities required for the fulfillment of the assignment for the agreed fee. The assignment concerns either mediation or valuation or the performance of other services.
All activities agreed for the fee are clearly, comprehensibly, and as concretely as reasonably possible set out in writing.
If there is an assignment for mediation, the assignment always includes the following activities: • assessing the value of the real estate; • giving advice about (conducting) negotiations; • conducting negotiations.
Unless expressly agreed otherwise in writing, the assignment for mediation also includes at least the following activities: • carrying out the necessary promotional activities and providing the necessary promotional material; • gathering and requesting information about legal, fiscal, structural, and other aspects concerning the real estate and informing about this if necessary; • helping to obtain an energy label or energy performance certificate; • arranging and accompanying viewings; • giving advice about and drawing up the (purchase or rental) agreement; • guiding the settlement of the (sale) and (rental).

Article 8 What special rules apply to a valuation?

A valuation of real estate is the estimation of the market value and the recording of that value in a standard model report. You may need a valuation, for example, to apply for a mortgage.
A valuation is performed by a registered valuer in person. Trust must be able to be derived from a valuation report in economic and social transactions. A valuation is therefore essentially different from a value determination made by a real estate agent as referred to in Article 7.
The valuation report contains the purpose for which the assignment was given. The valuation report is not intended to be used for other purposes.
If multiple valuers are involved in an assignment, they will jointly produce a valuation report. If they cannot agree on the content of the valuation report, they will consult with you. Depending on the agreements made, they may engage an additional valuer to produce a valuation report or they may issue a valuation report in which they present their own findings.
If multiple valuers have carried out the assignment, you will receive an invoice from each of them for their fee and costs, unless you have made other arrangements with them.

Article 9 When has the real estate agent fulfilled the assignment?

Unless you have agreed otherwise, the following applies: • The real estate agent has fulfilled his assignment once the agreed performance has been delivered. • For an assignment to mediation, the assignment is fulfilled when the purchase or rental agreement has been signed by both parties. The real estate agent must still guide you through the settlement. • An assignment to mediation is also fulfilled if during the term of the assignment a purchase or rental agreement is concluded that is not the result of services provided by the real estate agent. If you, as a buyer or as a tenant, have given the assignment and you buy or rent something outside the area to which the assignment relates, then the assignment is not fulfilled.
In purchase or rental agreements where suspensive or dissolving conditions are included (the statutory cooling-off period included), the assignment is only fulfilled when the suspensive conditions have been met and the parties can no longer invoke a dissolving condition.

Article 10 How is the fee calculated?

You agree with the real estate agent in advance how the fee will be calculated. Is it, for example, a percentage of the purchase price, a fixed total amount, or an hourly rate? This is recorded in the assignment.
Unless otherwise agreed, the purchase price is the amount that the buyer must pay to the seller. This amount excludes the costs for the transfer, such as transfer tax, notary fees, and land registry fees.
For more special cases, additional agreements are often necessary. Unless otherwise agreed, the purchase price is understood to be: • If VAT is payable on the purchase price: the amount including VAT. • For new construction: the purchase and contracting price together, including VAT. • For leasehold and/or building rights: the amount agreed upon by the buyer and seller, increased by an amount equal to ten times the periodic payment on an annual basis.
If the fee is calculated on the rental price, the rental price is understood to be: the amount that the tenant pays per month in rent (including any movable property that is rented along with it). You then pay the fee on an amount of 12 x the monthly rent. Any discounts on the rental price are not included in the calculation of the fee. This applies unless you have agreed otherwise.
The fee for a valuation may not depend on the height of the appraised (market) value.

Article 11 What costs does the real estate agent charge?

In addition to the fee, the real estate agent may also charge costs, for example for advertisements. He only charges these costs if you have agreed to them in advance. Agreements made are recorded in writing.

Article 12 When is the real estate agent entitled to the fee and costs incurred?

Unless otherwise agreed:
1. the real estate agent is only entitled to the fee when the assignment has been fulfilled. You pay the costs after they have been incurred by the real estate agent.
2. for a mediation assignment for sale or purchase, you only pay the fee during the transfer of ownership at the notary.
3. you do not have to pay interest for the period between the fulfillment of the assignment and the legal delivery.
Before you have to pay, the real estate agent sends you an itemized invoice with a reasonable payment term.
If the assignment has been given by more than one person, each of you is jointly and severally liable for the payment of the fee and costs.

Article 13 What does the real estate agent do if you do not pay on time?

If you do not pay on time, the real estate agent will send a payment reminder. You then have the opportunity to pay within two weeks of receiving the reminder.
If you do not pay within these two weeks, you are in default and the real estate agent may charge statutory interest.
After the aforementioned two weeks, the real estate agent may (have) collect(ed) the outstanding amount. The costs of this (e.g., collection costs) are then for your account, unless the judge or disputes committee decides otherwise. There are legal limits to the amount of these costs.

Article 14 Can you withdraw the assignment?

You may withdraw the assignment at any time, preferably in writing. There is no notice period.
If the assignment has been given by two or more persons, the assignment can only be withdrawn by these principals jointly.
Upon withdrawal, the real estate agent is entitled to compensation for the agreed costs, insofar as they have been incurred. The real estate agent is not entitled to a portion of the fee, unless otherwise agreed in the assignment or following from Article 19.
You are not obliged to compensate for any damage that the real estate agent suffers due to the withdrawal.

Article 15 Can the real estate agent return the assignment?

The real estate agent can only return the assignment if he has weighty reasons for doing so. A weighty reason is in any case: • When a real estate agent would otherwise work for both the buyer and the seller (or for both the tenant and the landlord) (see Article 5 paragraph 5); or • A serious disruption of the relationship between the real estate agent and you. The real estate agent indicates in writing if he returns the assignment.
You do not have to pay the real estate agent a fee if he returns the assignment. This may be different if Article 19 applies. You must pay costs incurred (as far as agreed) unless this is unreasonable.

Article 16 What happens if a concluded purchase or rental agreement does not lead to execution?

It may be that the assignment for mediation has been fulfilled, the purchase or rental agreement has been signed, and suspensive and dissolving conditions (including the statutory cooling-off period) have been worked out. But if one of the parties does not cooperate with the execution, the purchase or rental agreement still does not result in an actual transfer or (in the case of rental) occupation of the rented property. In such a case, the real estate agent is entitled to the agreed fee, unless you demonstrate that the real estate agent has fallen short and that as a result, the purchase or rental agreement does not lead to execution.

Article 17 What happens if the real estate is allocated to one of the owners, the partner, or a third party?

In some cases, a property (or other object) is allocated to one of the owners, the spouse, or partner while the mediation assignment for sale is still ongoing. The assignment ends as a result. If it has been agreed that the real estate agent’s fee depends on the sale of the property, the fee is calculated based on the value of the allocation. For example, if in a divorce (both partners own 50% of the house) one of the partners allocates his or her share to the other, the compensation is calculated on 50% of the value of the house. This principle also applies if the owner donates a part of the house to a third party. The real estate agent and you can make other agreements about how the fee is calculated in case of allocation.

Article 18 What happens if you die?

If you are the only principal, the assignment ends when you die, unless your heirs want to maintain the assignment.
If there are multiple principals, the assignment ends when one of you dies, unless the other principal wants to maintain the assignment.
If the assignment ends due to the death of (one of the) principal(s), Articles 14 paragraph 3 and paragraph 4 apply.

Article 19 Can it be that after termination of the assignment you still have to pay the real estate agent a fee?

If after termination of the mediation assignment a purchase or rental agreement is still concluded, the following applies. You must pay the real estate agent a fee if he proves that this agreement is the result of his services or that an agreement has not materialized because you have acted in violation of Article 6 paragraph 2. The real estate agent is then entitled to the agreed fee or a reasonable part thereof, unless you have made other agreements.

Article 20 What happens if you have a dispute with your real estate agent?

If you have a complaint about the establishment or execution of the assignment, you report this complaint in writing to the real estate agent.
Does the complaint not lead to a solution? Then you can submit the dispute to the Real Estate Disputes Committee (see degeschillencommissie.nl). You have 12 months to do this (from the moment you submitted the complaint to the real estate agent). Is it a dispute about liability for damage? Then the disputes committee is only competent for damages up to €10,000.
A dispute will only be handled by the Disputes Committee if the consumer has first fully and clearly described his complaint to the real estate agent.
When you submit a dispute to the Disputes Committee, the real estate agent is bound by this choice.
You can also submit the dispute to the court instead of to the disputes committee. But in that case, you cannot rely on the industry guarantee (see Article 21).
If the real estate agent wants to submit a dispute, he gives you the choice between the disputes committee and the court. If you do not make a choice within five weeks, the real estate agent may submit the dispute to the court.
The Regulations of the Real Estate Disputes Committee apply to the handling by the Disputes Committee.
A fee is payable for the handling of a dispute.

Article 21 What does the industry guarantee entail?

The NVM guarantees to you the fulfillment of the binding advice of the disputes committee up to a maximum of €10,000. Is it about a higher amount? Then the NVM has an obligation to make efforts to ensure that the real estate agent complies with this advice for the excess. This does not apply if this binding advice is submitted to the court for review within two months after its dispatch, whereby this advice is declared non-binding and no appeal against this decision is possible anymore.
Situations of suspension of payment and bankruptcy are excluded from the performance guarantee as long as the dispute has not yet been heard at the hearing. Situations of business termination are excluded from the performance guarantee unless the dispute was already made pending at that time.
You can make a written appeal to the industry guarantee if it has become apparent that the real estate agent does not comply with the binding advice of the Disputes Committee and has not submitted this advice to the court for review within two months after its dispatch.
The NVM pays you the amount within one calendar month after receiving the appeal to the industry guarantee. You must then have transferred your claim on the real estate agent to the NVM.

Article 22 How are deviating agreements recorded?

If you make deviating agreements with the real estate agent, the real estate agent must record these in writing.