If you are planning to buy a property with someone, first ask yourself these questions:
1. Are you planning to share financial responsibilities?
2. Are you planning to marry or enter a registered partnership?
3. Do you have a fixed or flexible income
4. How will you share the equity or debt?
When getting married or a registered partnership, a local community of property has been the norm since January 1, 2018. Alternatively, you can use a civil-law notary to draft a prenuptial or partnership agreement. Your owner-occupied home and mortgage debt are usually included in the community. If one of you passes away, the other can remain at home.
A cohabitation contract states that you are co-owners of the home and jointly liable for the mortgage obligation. The mortgage costs might be proportionally divided. Furthermore, in the cohabitation contract, you often specify which household products are shared and not and how much you contribute to the household costs.
When taking a mortgage together with a partner or alone, there are many topics to discuss.
1. As partners, you can make agreements about: what happens if you decide to separate or divorce one day.
2. How do you pay monthly mortgage payments?
3. How much money did you put into the house when you bought it jointly?
It is also essential to consider and think about what happens to a property when one of you passes away.
In the event of death, the ownership automatically passes to the surviving partner, according to the legislation.
However, automatic inheritance only applies to marrying or having a registered relationship. If you intend to live together 'normally,' you must specify in your will that the residence will pass to the surviving spouse.
If you are not married, the residence will be passed down to your legal heirs, for example, parents. In this case, it is always good to draw will at the notary.
It is recommended to take care of the partnership, prenuptial agreement, and will before signing a transfer deed at the notary.
How the mortgage is registered depends on the agreement between two partners. You can choose to go into a registered partnership or marriage before buying a home.
If you do so in a community of property, the house or debt you buy becomes automatically yours and your partner's. If you do not want to share property or debt with your partner, you can draft a prenuptial agreement at the notary.
Again, if you or your partner passes away, the portion of your ownership goes to the parents/heirs. To prevent that from happening, get married, get a registered partnership before buying a home or have a notary draft an agreement on what you want to do with the property, the earnings/debt, in case of death/separation.
It is essential to know when a property is registered at the Dutch Land Registry, the division of purchase has been officially formalized. For any further changes, require a new deed drawn by a notary.