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Buying a House in Denmark

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Formal Steps

As an UK citizen, being EU member, when relocating to Denmark, with a residence permit, there are no general restrictions for buying a house in Denmark. You are able to buy a home there, although there are certain specific restrictions in popular holiday areas for foreign ownership. These rules were designed to prevent the coastal areas being overrun by German second home buyers. Be sure you understand everything before you sign anything — use an interpreter if necessary. The usual steps are as follows.

Find the property and have a survey — especially for damp and construction errors. The seller should give you a report on the condition of the property — you need this to acquire the transfer deed. If none is forthcoming, you can hold the seller responsible for defects for up to 20 years after you have bought it. They should also inform you about energy expenses. Then your seller’s estate agent drafts a “purchase agreement”. Your attorney draws up a deed of conveyance. This assures you of clear title once the deed has been recorded at the local land registry office. The estate agent will negotiate the purchase price with the lawyer, before the buyer and seller sign the final document contracts.

Buying a House in Denmark

The lawyer will notarise them on your behalf and issue the official owner document. (You have six days after signing the purchase agreement to go back on the deal by giving written notice, but you will have to pay compensation (1% of the purchase price) to the seller.

When the purchase agreement has been signed, you put down the first part of the payment (5% of the purchase price). The rest of the down payment is deposited usually into the seller’s bank, or into a commercial escrow bank account, once the transfer deed has been signed. The funds are released when you have received unconditional title to the property. It usually lasts between 60 and 120 days. It takes an average of 16 days to complete registration of a property in Denmark. Six months from start to finish is the average time. Transaction costs are around 1-3.5%.

Property Prices

When buying a house in Denmark you may find that property prices vary a great deal. You can find a five-bedroom house for £705 000, a four-bedroom house for £178 000 or a two-bedroom house for around £40 000. It usually costs more than you expect to complete the process, so check your finances carefully. Currency rates will affect you.

Published By VanOne
Last updated on 12th August 2019

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