Theoretically, a real property can be transmitted by means of a verbal agreement under Danish law, but some lawyers believe that a real property transaction is such a complex transaction that a written agreement is actually needed. In any case, the registration of the transfer of ownership involves digital signatures, and claims that real estate is transferred by means of a verbal agreement are rare. for sale in qatar
Denmark does not have a notary system for property transactions.
Can contracts of sale be entered into electronically?
Yes, in principle the buyer and the seller can enter into the land register and sign digitally under the terms of the sales agreement.
What are the normally included provisions in a sales contract?
Typically, a sales contract contains the following provisions:
Buyer and seller names and addresses;
purpose;
Date of completion and deliverables completion;
Information on the property and the general terms and conditions under which the property is transferred;
purchase price, including mechanisms of adjustment;
terms of payment;
Insurance obligations; obligations;
the warranties and specific compensation of the parties;
requirements for property operation until the date of completion;
provisions on preparation of the completion statement;
VAT (including the seller's assumption of any VAT adjustment obligation) issues; VAT issues;
confidentiality;
Transaction costs (legal costs and costs for stamp duty);
Different notices to the government and third parties;
Attribution and transfer; and
Law and conditions governing.
Duties and liabilities
What are the obligations of the seller to disclose and other liabilities and what are the consequences of the violation?
The seller is subject to the general obligation under Danish law to disclose loyally all matters that might be important to the purchaser when deciding whether to enter into an agreement to buy the property concerned. The seller must also cooperate loyally and answer any questions with truth. It is sufficient for the seller to make clear to the buyer documents which can be derived from such matters during the due diligence of the buyer. The buyer must, on the other hand, conduct reasonable inquiries (caveat emptor).
Where the seller has failed to comply with their disclosure obligations, general remedies will be made available to the buyer - depending on the severity of the breach and subject to any de minimis, basket and cap agreements - including price reduction and offsetting pro rata. A buyer's right to terminate would require the infringement to be material.
What contractual guarantees do the seller usually give?
The seller always guarantees that the seller holds the property's sole title. The guarantees provided by the seller also depend on the negotiations between the parties, the nature of the transaction and the parties concerned. Bankruptcy properties and private equity sellers are reluctant to offer more than basic guarantees. Over the past few years, the use of guarantee and compensation insurance has become more and more popular in Danish property transactions.
Includes standard warranties:
Free title and full title;
Absence of third-party rights not registered;
Lack of disputes (without disclosure);
issues related to leases, including no termination or breach by tenants; and
Failure to fulfill unfulfilled authorities obligations, including taxes for the period preceding the transfer date.
Are the buyer subject to any other obligations except payment of the purchase price?
The buyer must usually send the title deed application to the land register. The purchaser is generally obliged to cooperate loyally in order to complete the transaction in accordance with the terms and conditions set forth in the sales agreement, including by signing the digital documentation and signing further documents (e.g. with the purchaser assuming any obligation to adjust the price of VAT).
Taxes
What taxes can be paid when selling and purchasing property? Are there exemptions?
A registration tax of 0,6% of the property's buy price plus a standard fee of Dkr1,660 shall apply to the registration of the sale of the property.
No registration tax is applied to the sale of shares in an immobiliary company.
One or more properties are often dropped into a special purpose vehicle (SPV) (a contribution in type of property or property), and the shares of the SPV are then sold. Depending on the methodology adapted, holding period restrictions apply.
Other structures, including the merging of properties together with the parceling of properties from a larger property, are also adopted for larger transactions.