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Property Purchase Agreement

Property Purchase Agreement Template for Denmark

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Property Purchase Agreement

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Document background
The Property Purchase Agreement is a fundamental legal document used in Danish real estate transactions to formalize the transfer of property ownership. It is essential for any real estate purchase in Denmark, whether residential, commercial, or industrial. The agreement must comply with Danish property law, including the Formation of Contracts Act (Aftaleloven) and the Registration of Property Act (Tinglysningsloven). It contains mandatory elements such as property details, purchase price, financing arrangements, condition reports, energy certificates, and registration requirements. The document serves multiple purposes: it protects both parties' interests, ensures legal compliance, facilitates property registration, and provides a clear framework for the transaction's completion. It is typically prepared with professional legal assistance and may require input from real estate agents, financial institutions, and technical experts.
Suggested Sections

1. Parties: Identification of the seller(s) and buyer(s) with full legal names, addresses, and CPR/CVR numbers

2. Background: Brief context of the transaction and property overview

3. Definitions: Key terms used throughout the agreement

4. Property Details: Comprehensive description of the property including address, land registry number (matrikelnummer), and total area

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

6. Financing: Details of how the purchase will be financed, including any mortgage arrangements

7. Condition of the Property: Current state of the property, known defects, and results of property inspections

8. Transfer of Ownership: Date of ownership transfer (overtagelsesdag) and associated responsibilities

9. Registration and Title: Process for legal registration of ownership and title transfer

10. Utilities and Operating Costs: Transfer of utility contracts and ongoing operating costs

11. Representations and Warranties: Statements and guarantees from both parties regarding the property and transaction

12. Tax Matters: Property tax arrangements and responsibilities

13. Costs and Fees: Allocation of transaction costs, registration fees, and professional fees

14. Governing Law and Jurisdiction: Confirmation of Danish law application and dispute resolution process

15. Signatures: Execution blocks for all parties and witnesses

Optional Sections

1. Tenant Rights: Required if the property is currently leased - details of existing tenancies and their treatment post-sale

2. Property Management: Required for apartments - details of housing association (ejerforening) membership and obligations

3. Environmental Matters: Required if there are known environmental issues or specific regulations affecting the property

4. Development Rights: Required if there are ongoing or potential development projects affecting the property

5. Agricultural Provisions: Required for agricultural properties - compliance with Danish agricultural ownership rules

6. Heritage Protection: Required for listed buildings or properties in conservation areas

7. Business Transfer: Required if the property includes an ongoing business operation

8. Parking Rights: Required if separate parking arrangements or rights are included in the sale

Suggested Schedules

1. Property Description Schedule: Detailed technical description of the property including floor plans and land surveys

2. Title Documents: Copies of land registry documents and title information

3. Property Inspection Report: Technical assessment of the property's condition (tilstandsrapport)

4. Energy Performance Certificate: Mandatory energy rating certificate (energimærkning)

5. Insurance Documentation: Details of existing insurance and owner's change requirements

6. Property Charges Schedule: List of all charges, mortgages, and encumbrances affecting the property

7. Inventory List: List of fixtures, fittings, and other items included in the sale

8. Planning Documents: Relevant planning permissions and restrictions

9. Environmental Reports: Any environmental surveys or assessments conducted

10. Building Permits: Copies of relevant building permits and certificates

Authors

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Relevant legal definitions
Agreement
Property
Land Registry Number (Matrikelnummer)
Purchase Price
Deposit
Completion Date (Overtagelsesdag)
Registration Date (Tinglysningsdato)
Seller
Buyer
Working Day
Title Deed (Skøde)
Property Inspection Report (Tilstandsrapport)
Energy Performance Certificate (Energimærkning)
Land Registry (Tinglysning)
Encumbrances
Mortgage Deed (Pantebrev)
Housing Association (Ejerforening)
Property Charges
Completion Statement
Transfer Notice
Due Diligence Material
Environmental Report
Building Regulations
Planning Permissions
Fixtures and Fittings
Common Areas
Service Charges
Property Tax (Ejendomsskat)
Land Value Tax (Grundskyld)
Utility Providers
Insurance Policy
Professional Advisers
Relevant Authority
Material Adverse Change
Force Majeure
Permitted Use
Registration Fees
Stamp Duty
Contract Sum
Signing Date
Effective Date
Inspection Period
Defects
Legal Title
Beneficial Ownership
Clauses
Identification of Parties
Property Description
Purchase Price
Payment Terms
Deposit Requirements
Title and Ownership
Property Registration
Condition Precedent
Due Diligence
Property Inspection
Representations and Warranties
Seller's Obligations
Buyer's Obligations
Property Condition
Environmental Matters
Planning and Zoning
Insurance
Utilities Transfer
Property Charges
Tax Matters
Risk and Liability
Completion Requirements
Post-Completion Obligations
Default and Remedies
Force Majeure
Assignment
Notices
Costs and Expenses
Confidentiality
Data Protection
Entire Agreement
Amendments
Severability
Governing Law
Jurisdiction
Dispute Resolution
Third Party Rights
Termination
Property Management
Housing Association
Energy Performance
Building Regulations
Property Access
Existing Tenancies
Service Contracts
Property Insurance
Mortgage Arrangements
Land Registry Requirements
Relevant Industries
Relevant Teams
Relevant Roles
Industries
Danish Formation of Contracts Act (Aftaleloven): Fundamental law governing contract formation, validity, and general principles of contract law in Denmark. Essential for ensuring the purchase agreement meets basic contractual requirements.
Danish Registration of Property Act (Tinglysningsloven): Regulates the registration of real property rights and encumbrances in the Land Registry. Critical for ensuring proper transfer of title and registration of ownership.
Danish Sale of Goods Act (Købeloven): While primarily focused on movable property, certain principles apply to real estate transactions, particularly regarding defects and breach of contract.
Danish Consumer Protection Act (Forbrugerbeskyttelsesloven): Applicable when the buyer is a consumer and the seller is a professional. Provides additional protection and requirements for consumer transactions.
Danish Mortgage Credit Act (Realkreditloven): Relevant for financing aspects of the property purchase and existing mortgages on the property.
Danish Planning Act (Planloven): Important for verifying property use restrictions, zoning regulations, and future development possibilities.
Danish Building Act (Byggeloven): Relevant for ensuring compliance with building regulations and identifying any outstanding building code violations.
Danish Energy Performance of Buildings Act (Lov om energimærkning af bygninger): Requires energy performance certification for properties being sold, which must be available to the buyer.
Danish Property Tax Act (Ejendomsskatteloven): Governs property taxation matters that need to be addressed in the purchase agreement regarding tax liability transfer.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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