Home Equity Agreement Template for Netherlands

A Home Equity Agreement lets Dutch homeowners access their property's value without taking on new debt. Unlike traditional mortgages (hypotheken), these agreements involve selling a percentage of your home's future value to an investor in exchange for immediate cash.

Under Dutch civil law, these contracts must be notarized and registered with the Kadaster (land registry). The investor shares both the potential gains and losses when you sell your home or reach the agreement's end date, typically 10-30 years. This arrangement has gained popularity as an alternative to second mortgages, especially in major cities like Amsterdam where property values have risen significantly.

Consider a Home Equity Agreement when you need substantial funds but want to avoid monthly payments or additional debt. This option works particularly well if you're self-employed with irregular income, planning retirement expenses, or need capital for business ventures in the Netherlands.

The agreement makes sense when you believe your property will appreciate significantly, as you'll share future gains with investors. It's also valuable for Dutch homeowners who can't qualify for traditional mortgage refinancing due to income requirements or who have reached their maximum borrowing capacity under the National Mortgage Guarantee (NHG) guidelines. Just remember that you'll need enough equity—typically at least 30%—in your property.

• Fixed-Term Agreements: Standard 10-year contracts where the investor receives a fixed percentage of your home's value change
• Flexible Exit Agreements: Allow early buyout options with adjustable settlement terms based on holding period
• Shared Appreciation Agreements: Investors receive a larger share of gains in exchange for a higher initial payment
• Retirement-Focused Plans: Longer terms (20-30 years) with special provisions for senior homeowners under Dutch pension regulations
• Business Purpose Agreements: Structured specifically for properties used partially for business, following Dutch commercial property rules

• Homeowners: Dutch property owners seeking to access their home equity without taking on traditional debt obligations
• Investment Companies: Licensed financial firms that provide funding and manage Home Equity Agreements under AFM regulations
• Notaries: Dutch civil law notaries who validate and register these agreements with the Kadaster
• Financial Advisors: Help clients evaluate the agreement terms and compare alternatives under Dutch financial regulations
• Tax Specialists: Advise on tax implications and treatment of proceeds under Dutch tax law

• Property Details: Gather current market valuation, official property description from Kadaster, and existing mortgage information
• Financial Documentation: Compile recent tax returns, property tax assessments, and maintenance costs history
• Agreement Terms: Define investment percentage, duration, and exit conditions aligned with Dutch civil code requirements
• Legal Requirements: Schedule notary appointments and prepare registration documents for Kadaster filing
• Risk Assessment: Document property condition, planned improvements, and potential value impacts through photographs and reports

• Party Identification: Full legal names, addresses, and KvK numbers for business entities involved
• Property Description: Detailed property specifications, Kadaster registration number, and current market value
• Investment Terms: Clear percentage stake, payment amount, and duration of agreement
• Exit Provisions: Conditions for early termination, sale procedures, and value determination methods
• Rights and Obligations: Maintenance requirements, insurance obligations, and property use restrictions
• Notarial Statement: Required declaration and registration details for Dutch land registry compliance

A Home Equity Agreement differs significantly from an Equity Agreement in both purpose and structure. While both involve sharing ownership, they operate in completely different contexts under Dutch law.

• Asset Type: Home Equity Agreements specifically deal with residential property value sharing, while Equity Agreements concern business ownership stakes
• Legal Framework: Home Equity Agreements fall under Dutch property law and require notarial deeds, whereas Equity Agreements follow corporate law guidelines
• Duration Structure: Home Equity Agreements typically have fixed terms with specific exit points, while Equity Agreements often remain open-ended
• Value Calculation: Home Equity Agreements base returns on property market values, but Equity Agreements rely on company valuations and performance metrics
• Regulatory Oversight: Home Equity Agreements require AFM supervision as financial products, while Equity Agreements fall under standard corporate governance rules