Articles & News from the real estate market in Denmark
Changing the preliminary property assessment for 2022
The preliminary property assessments for 2022, which were released in September 2023, have received sharp criticism from several experts and homeowners due to errors and too high assessments. In this article, we will take a closer look at the conditions that must be met for you as a homeowner to apply for a change to the preliminary property assessment for 2022. Tax Discount If you were already a homeowner by the end of 2023, you are [...]
Pitfalls in Home Buying
For most people, purchasing a home is the largest investment they make in their lives. It is an exciting, complex, and at times stressful process, involving a multitude of emotions where planning is an essential keyword. Unfortunately, there are numerous pitfalls that can arise along the way and create issues for homebuyers. This article will take a closer look at some of the most common pitfalls in home buying and provide advice on how to avoid them. [...]
The seller’s disclosure obligation
When it comes to the purchase of real estate, there are several important legal principles and obligations that both buyers and sellers must adhere to. One of the most crucial aspects in this regard is the seller's disclosure obligation. This is a legal obligation that imposes on the seller of a property the duty to provide the buyer with all relevant information about the condition of the property and any hidden defects. This disclosure obligation is essential to ensure [...]
Price of a parking space in Danish cities
This article looks at the general cost of a parking space if you are purchasing one in connection to buying a home, and whether it is possible to co-finance a parking space in the purchase price when buying a home. How much does a parking space cost? When purchasing newer homes in the cities, it is common practice to pay for a parking space if you wish to have access to one. How much you should [...]
Property purchase in Denmark
In this article, we will take a closer look at the legal basis for foreigners purchasing real estate in Denmark, as well as the exceptions to the general rule for the purchase of real estate in Denmark by foreigners and the consequences of evading the law. The legal basis for the purchase of real estate The purchase of real estate in Denmark by foreigners is regulated by the Act on Acquisition of Real Property. The general [...]
Bank guarantee
In this article, we will take a closer look at what a bank guarantee is, how a bank guarantee works, and what a bank guarantee costs. What is a bank guarantee? When buying real estate where a lot of money is involved, the seller, cf. the terms of the purchase agreement, will typically demand that security be provided for payment of the purchase price. The security can be in the form of an irrevocable bank guarantee, [...]
Landowner association
In this article, we will, among other things, take a closer look at what a landowner association is, how a landowner association is founded and when you, as a landowner, are obliged to be a member of a landowner association. What is a landowner association? A landowner association is an association of landowners in a defined area that represents the interests of the landowners to the local municipality or other public authorities. The landowner association handles [...]
Collateral security in homeowner associations
In this article, we will take a closer look at homeowners’ collateral in homeowner associations, how collateral security works in practice, and how it may be structured. How does collateral security work in practice? As security for the payment of common expenses and other requirements from the homeowner association, a collateral for the homeowner association will typically be registered for each apartment. The collateral usually amounts to a minimum of one year’s payments to the homeowner [...]
Homeowner insurance
In this article, we will take a closer look at the coverage provided by homeowner insurance, whether homeowner insurance is mandatory, which parts of a building are covered by homeowner insurance, as well as the cost of insurance. What does homeowner insurance cover? Homeowner insurances usually cover damage caused by house fires, storms, frost, and sudden water damage. However, insurance companies offer a range of additional coverages. These may include legal aid, wiring, extended water and [...]
Liability in owner associations
This article looks closely at the various forms of liability written into the articles of owner associations, and how these forms of liability affect you as a buyer. Owner association as a legal person While a owner association is essentially an administrative community, it is considered a legal person that can enter into legal transactions – that is, buy, sell, obtain loans etc. For this reason, the owner association can take out loans to, for instance, [...]
Right of withdrawal when buying a home
Even if both you and the seller have signed the purchase agreement, you can exercise your right of withdrawal when purchasing a home. But what is the cost of withdrawing from a real estate purchase, and how does it work? Read more about the regulations that apply when withdrawing from a property purchase. What is a right of withdrawal when buying a home? When purchasing a home, you have a statutory right of withdrawal. The right of withdrawal is [...]
Deed of conveyance
A final deed of conveyance is the last document in the sale of real estate and property. The deed is proof of documentation that you are the rightful owner of the property. For this reason, the agreed purchase price will not be transferred to the seller's bank account before registering the deed at The Danish Land Registry, officially registering you as the new property owner. In this section, you can learn more about what a deed contains, who can [...]
Registration of mortgage (loan) in real estate and stamp duty refund
As a buyer, when you register mortgage in real estate, you must pay a fixed and variable registration fee to the state. The variable fee is equal to 1.45% of the total mortgage loan amount, whereas the fixed registration fee is equal to DKK 1,730, according to section 5a (1) of the Danish Act on Registration Fees. How is the registration fee calculated? When calculating the variable registration fee, the percentage fee is rounded up to the nearest amount [...]
Adviser approval clause
Before signing a sales and purchase agreement regarding property and real estate, you should always ensure that the document contains an adviser approval clause. The insertion of an adviser approval clause in the sales and purchase agreement guarantees your signature being conditional upon your advisor’s approval of the deal in its entirety. If there are terms and conditions in the sales and purchase agreement or the other documents relevant to the purchase of which you have not been aware [...]
Material errors and defects in real estate – what should you be especially aware of?
After being handed the keys to your future home, it’s not unusual for you to discover material errors and defects in the property. The question is: what rights do you have as a buyer, and what should you be especially aware of? If the seller has had a condition report and an electrical installation report drawn up, submitted a change of ownership insurance offer, and a declaration regarding payment of half of the change of ownership insurance premium, then [...]
Reimbursement of real estate expenses
A reimbursement statement is the final settlement of financial accounts between buyer and seller in a property deal. It covers all the costs that the seller has paid prior to the handover date, and that extend into the buyer’s ownership period. You can read more below about what a reimbursement statement typically includes, when the refund is made, and who draws up the reimbursement statement. What is a reimbursement statement? When you own a house or an apartment, there are [...]
Conditional purchase agreement
A purchase agreement can be made conditional in connection with a home sale. There can be both benefits and downsides attached to this type of agreement. In this blog, we will dive into conditional purchase agreements – what they are, what rules relate to them, their advantages, and disadvantages, and much more. In other words, you will be introduced to everything worth knowing about conditional purchase agreements so that you can make an informed decision. Read on for answers [...]
Buying a villa apartment (villalejlighed) – what should you as a buyer be aware of?
Villa apartment, ideal share, two-family house—there are many names for it. Many people have probably heard of this type of home before, but what exactly should you, as a buyer, pay special attention to when choosing to ‘share’ a house with another family? When you buy a villa apartment, you buy: 1: Shared ownership of the entire property with the other owners. 2: Right of use for part of the property (the villa apartment). You only have the right [...]
What are your options as a buyer in the event of liability waivers in the purchase agreement?
When you deal in real estate in Denmark as a buyer, you will often find purchase agreements in which the seller excludes, or attempts to exclude, their liability for any faults or omissions in the property/building. For example, there may be liability waivers regarding the size of the living space, land conditions, or recessed ceilings in owner-occupied apartments. In practice, a distinction is made between general and specific liability waivers. Liability waivers of a general nature will rarely be [...]
Buying a summer house in Denmark – eight things to consider before you sign an agreement
1. Do you meet the residence requirement? In order to purchase a summer house in Denmark, you must have been resident in this country as defined by the Danish Act on the Acquisition of Real Estate (Erhvervelsesloven) or have lived in Denmark for a total of five years pursuant to Section 1 of the Act on the Acquisition of Real Estate. When considering if you meet the residency requirement, it is not necessary for you to have lived in [...]
How do buildings worthy of preservation affect you as a buyer?
Let’s establish one thing first: if a house is listed, then this applies to the entire building, both inside and out. In that case, any changes must be approved by the Agency for Culture and Palaces. If, on the other hand, the house is designated as “worthy of preservation”, this will generally only affect the appearance of the house, i.e. the exterior of the building e.g. windows, doors, façade, roof etc. According to the Danish Planning Act, it is [...]
Municipal property tax has been frozen since 2018
Municipal property tax, also called land tax, is the amount paid to the municipality based solely on the value of a property. But what is the frozen property tax that you can see on your property tax bill? First, let’s set things straight – you should not confuse the scheme to freeze municipal property taxes, which has existed since 2018, with the loans offered to pensioners for payment of property tax. In 2018, all property owners were registered in [...]
What do the new property assessments mean for you as a homeowner/homebuyer and how are they determined?
The Danish Property Assessment Agency has just sent out the first property assessments, and many homeowners are asking themselves one question: What do the new property assessments mean for me? The purpose of the new property assessments and the new assessment/property tax system has been to make more accurate and transparent property assessments based on the realized property value in the area where the property is located, which means that the homeowner pays property tax based on the real [...]
How does a typical real estate deal in Denmark proceed?
After having viewed the property, the buyer and seller enter into a purchase agreement, to specify the terms of the sale. These include the agreed purchase price, date of takeover, and the individual terms that the buyer and seller have agreed upon. Before you as a buyer consider looking at a property and making an offer, it’s a good idea to team up with a buyer's agent that can guide you through the purchase process and help you with [...]
Condition report (tilstandsrapport) – Things you as a buyer should be aware of
The purpose of an inspection of the property with a construction expert, is to determine the condition of the building in question compared to equivalent buildings of the same age. As a buyer, you must thus be aware that there may be age-related technical conditions in the building, which are to be expected with this type of construction, and which are thus not described in the condition report. There may for example be dampness in the basement of an [...]
Guide to change of ownership insurance
What exactly does the change of ownership insurance cover and what should you, as buyer, be especially aware of? Briefly, the change of ownership insurance covers any hidden defects or shortcomings in the property, that are not listed in the condition report (tilstandsrapport) or the electrical installation condition report (elinstallationsrapport), and which you were not yourself aware of at the time of handover. As buyer, it is important, however, that you scrutinize the insurance terms carefully, as there can [...]
Is the housing market in Denmark overheated?
It can hardly have passed anyone’s attention, that the housing market has been doing remarkably well over the last two years, with a record number of sales and record-high prices as a result. The Systemic Risk Council and The Governor of the Central Bank of Denmark have, among other things, recommended that the Danish Government ought to raise the down payment requirement, reduce the home mortgage interest deduction, and/or intervene/impose restrictions in relation to access to the non-amortization loans, [...]
Buying property in Denmark as a foreigner
As a non-Danish national it can be quite a challenge to buy real estate in Denmark. There can be many pitfalls and a lot of buyers may not quite know where to start. Minkøbermægler.dk has made a list of some of the most important things you should be aware of when buying property in Denmark. 1. Make sure that you have talked to a few different banks and that at least one bank has pre-approved you for the buy. [...]
Buying an apartment in Denmark – 9 typical points to focus on
1. Remember to read the sales presentation closely. It contains important information on things such as existing debts, the property’s conditions of insurance, security for the owners’ association, outstanding loans that can be taken over or form the basis for refunding registration fees etc. Information in the sales presentation is required to be accurate, meaning the seller may be held liable for any false/incorrect information stated in the listing. 2. Familiarize yourself with the finances and operations of the [...]
