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Buying

There are currently restrictions on foreigners from buying property in Denmark who have not had a permanent residence in the country for a total of five years. If the residence stipulation has not been fulfilled, it is necessary to seek permission from the Danish Ministry of Justice to purchase property. Applications for a permission to purchase are normally granted provided the property is to be filled all year round and the applicant has a residence permit. Citizens of an EU nation need not obtain permission from the Ministry of Justice, rather they must enclose a declaration with the title deed.

When beginning your search for property in Denmark, it is wise to obtain a buyers certificate as this will help to speed up the process. The buyers certificate is a document that is produced by the buyer’s bank that details that the financial backing is in place. This will give the seller the reassurance that you are ready and willing to go ahead with a possible purchase.

In addition to the buyer’s certificate, one will obtain a statement of sales. This will detail the cash price of a property, deposit required, the applicable legal fees and the fees in relation to utilities such as electricity and gas.

Once you have found a property that you are interested in purchasing, you can request the property report from the seller. This is a document that details the general condition of the property, it is not mandatory but it can be mutually beneficial to the buyer and seller and they are common in purchases these days. If there has been no property report made, the buyer can hold the seller responsible for up to 20 years after the deal has been formalised if there are unknown defects or damages that were not mentioned previously by the seller.

If the details of the property are acceptable the buyer and the seller will execute a purchase agreement. This is a legally binding document for both parties, however, for 6 days following the signing of the contract, the buyer can cancel the deal providing that they financially compensate the seller with a fee equal to 1% of the purchase price. At the signing of the purchase agreement, the seller is expected to pay a 5% deposit.

The next step of the process is for the property documents to be circulated to the buyer. These will include the land certificate, mortgage deeds, cadastral map (this map details the property number and location), property tax note, transfer deed, etc.

The deeds will then be drawn up which will be signed by both the buyer and seller and the document will be forwarded to the Land Registry to prove that the transfer of ownership has taken place. The signing of this document legal binds the sale. After this document has been signed, the rest of the payment for the property will be transferred to the seller and upon notification that the funds are in place, the keys will be given to the seller and the deposit initially paid to the seller will be refunded to the buyer.

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