Real Estate Contract

Real Estate Contract Template for Denmark

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Document background

The Real Estate Contract serves as the primary legal instrument for property transactions in Denmark, whether for residential, commercial, or industrial properties. This document is essential when transferring real property ownership and must comply with specific requirements under Danish law, including the Registration of Property Act (Tinglysningsloven) and the Real Estate Business Act. The contract includes mandatory elements such as property details, energy certificates, and condition reports, while also addressing specific Danish requirements for property registration and transfer. It's designed to protect both parties' interests while ensuring the transaction meets all legal requirements for property transfers in Denmark. The document is typically prepared with input from legal professionals and real estate agents to ensure all local regulations and practices are properly addressed.

Suggested Sections

1. Parties: Identification and details of the seller and buyer, including full legal names, addresses, and CPR/CVR numbers

2. Background: Context of the transaction and brief description of the property being sold

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the property including address, land registry number (matrikelnummer), size, and included fixtures and fittings

5. Purchase Price: Agreed purchase price and payment structure, including deposit requirements

6. Payment Terms: Details of how and when payments are to be made, including escrow arrangements

7. Closing Date and Handover: Specified date for closing and property handover, including key transfer and possession details

8. Condition of Property: Current state of the property, known defects, and results of property inspection

9. Seller's Representations and Warranties: Seller's declarations regarding property condition, encumbrances, and other material facts

10. Due Diligence: Buyer's inspection rights and documentation requirements

11. Title and Registration: Provisions regarding transfer of title and registration in the Land Registry

12. Costs and Taxes: Allocation of transaction costs, registration fees, and property taxes

13. Default and Remedies: Consequences of breach by either party and available remedies

14. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction for disputes

15. Signatures: Execution provisions and space for parties' signatures

Optional Sections

1. Mortgage Assumption: Terms for buyer's assumption of existing mortgages, used when existing mortgages are being transferred

2. Tenant Rights: Details of existing tenancy agreements and their handling, required when property is currently leased

3. Renovation Requirements: Specific agreements about renovations to be completed before or after closing

4. Property Management: Arrangements for property management during transition period

5. Environmental Conditions: Specific provisions regarding environmental issues or contamination

6. Development Rights: Details of any development potential or restrictions, relevant for properties with development potential

7. Furniture and Fixtures: Detailed list of movable items included in the sale

8. Conditional Sale Provisions: Conditions that must be met before the sale becomes final, such as financing or planning permission

Suggested Schedules

1. Property Documents: Land registry extract, property plans, and building permits

2. Technical Due Diligence Report: Building inspection reports and technical assessments

3. Energy Performance Certificate: Mandatory energy rating documentation

4. Property Charges: Overview of property taxes, utilities, and other recurring charges

5. Fixture and Fittings List: Detailed inventory of items included in and excluded from the sale

6. Title Documents: Historical title information and encumbrances

7. Environmental Reports: Any environmental surveys or assessments

8. Planning Documents: Zoning certificates and planning permissions

9. Insurance Documentation: Current insurance policies and claims history

10. Photographs: Documentation of property condition at time of contract

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