Deposit in Purchase Agreements

In the purchase of a house, the deposit serves as a down payment to guarantee the purchase (Article 7:28 of the Dutch Civil Code). The standard amount is 10% of the purchase price, to be deposited with a notary within 14 days of signing. Purpose: coverage in case of dissolution due to financing issues or defects. In the event of non-compliance, the sum is forfeited to the seller, unless the breach of contract is not attributable to the buyer. A notarial escrow arrangement protects both parties. Under resolutive conditions (e.g., financing), the sum is refunded. Advice: verify resolutive conditions and arrange a valuation. Disputes are handled by the Legal Aid Board or the court.