Lars Wouters
Legal Associate
When a developer delivers your home late, the law gives you a remedy. Here is how penalty and damages clauses work for off-plan buyers under Dutch law.
Buying a property off-plan carries one persistent risk: late delivery. Fortunately, the standard koop-/aannemingsovereenkomst (and the Dutch Civil Code) builds in a remedy — a penalty/interest clause (boetebeding) — so that purchasers are compensated when developers run late.
How the penalty is calculated
The contract fixes the delivery period and provides for a daily penalty (often expressed as a percentage of the purchase price per day of delay). Because the figure is pre-agreed, a purchaser generally does not need to prove the exact loss suffered — though a court can moderate a penalty under the Civil Code if it is manifestly excessive.
When does time start running?
A recurring battleground is the date from which the delivery period — and therefore the delay — is measured. Whether time runs from the date of the contract, from a notice of default (ingebrekestelling), or from another milestone matters, and purchasers should check which applies to their agreement.
- Confirm the contractual delivery period in your agreement.
- Keep records of payment dates and key milestones.
- Note the completion of common areas, which can carry its own delivery period.
A contractual penalty is a right written into the agreement — not a favour the developer chooses to grant.
Developers sometimes resist or under-pay these claims. We advise purchasers on quantifying and recovering their entitlement, through negotiation or the appropriate court.
This article is general information, not legal advice. For guidance on your specific situation, please speak to our team.
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