What is a deposit (Waarborgsom) and what is it used for?

What is a deposit?

After purchasing a home (especially when buying your first home in the Netherlands), one of the first formal steps is signing a preliminary purchase agreement. This document includes all the key information about the property, such as the plot size, the purchase price, any financing conditions — and also one word you’ll often see bolded: deposit. 

A deposit (waarborgsom) is simply a form of financial security. It’s a sum of money that the buyer must transfer to the notary as a sign of commitment to the purchase. It gives the seller reassurance that the buyer is serious and intends to follow through with the deal while applying for a mortgage in the Netherlands.

How much is the deposit? 

The deposit is almost always 10% of the purchase price. So, if you’re buying a home for €450,000, the deposit would be €45,000. This amount must be transferred to the notary’s escrow account and will remain there until the official transfer of ownership takes place. 

Do you always have to pay the deposit yourself? 

If you have the funds available, you’re allowed to pay the deposit yourself, but you don’t have to. If you don’t have enough savings, you can meet the requirement by arranging a bank guarantee instead. 

When does It have to be paid? 

The preliminary purchase agreement will also specify the deadline by which the notary must receive the deposit. In most cases, this is within two weeks of signing the agreement with the estate agent. 

Make sure to pay it on time! Keep an eye on your mailbox and email for the notary’s invoice. If you haven’t received anything, contact your notary or mortgage advisor promptly — delays can cause problems. 

Is a deposit mandatory? 

It’s not required by law, but in practice, 98% of purchase agreements include it. It offers peace of mind for the seller and shows the buyer’s commitment to moving forward and occupying the home. 

Do you get the deposit Back? 

That depends on your financial situation and preferences. After completion, you can choose to: 

• Have the deposit refunded to your bank account, or
• Use it as part of your own contribution toward the purchase. 

This choice must be made in advance — not during the final signing at the notary. 

When do you not get the deposit Back? 

That depends entirely on the conditions and agreements made during your offer and purchase. If the buyer fails to meet the terms and the sale falls through as a result, the seller may be entitled to keep the deposit. 

Always review the preliminary purchase agreement together with a mortgage advisor who can explain the deposit and bank guarantee options clearly.