A-Z Guide

A-Z Guide

Brikk has prepared an A-Z guide where you can find explanations of relevant terms and useful knowledge for home sellers and home buyers.

A

Title (adkomst) 
When you obtain title to a property, you have a legal right to the property as its new owner. You get this through a registered deed (skøde), also known as a title document. 

Lawyer’s reservation (advokatforbehold) 
By using a lawyer’s reservation or adviser’s reservation, you as the buyer can secure the option of withdrawing from the deal without using your right of cancellation or paying costs to the seller (which are 1% of the purchase price), if your adviser finds something that makes you, as the buyer, want to withdraw from the deal. This means that the lawyer’s reservation lets the buyer sign the purchase contract, and if the lawyer does not approve the deal, the buyer is not bound by their signature on the contract. If you choose not to use a lawyer’s reservation and only your right of cancellation, costs must always be paid to the seller.

Completion of the sale 
When the sale is completed, you are entitled to your money and the buyer is entitled to take over the home and the deed. Before the deal is completed, registration, financing and other paperwork must be in order. The buyer’s financing decision in connection with the property is irrelevant to you, just as it is irrelevant to the buyer to know how you remove your previous loans and other possible financial obligations on the property. If it benefits the buyer, they will take over your loans, which will be drawn up in a debt agreement by the buyer’s bank and/or lawyer.
Your representatives and the buyer’s representatives work together so the deal can be completed as quickly as possible. The buyer’s lawyer will often be responsible for the conveyancing, so the buyer runs no risk, as the lawyer handles the legal process. 
The procedure consists of the following 5 steps:

1. You receive payment for the property. The amount is often paid out in 2 instalments, with the rest of the purchase price paid on the handover day. The first part is typically paid to the estate agent and the second at the bank. The buyer’s bank guarantees the rest of the purchase price in the period up to the handover day.
2. Your bank or lawyer will then review the home’s mortgage and cancel any mortgage-credit loans and other charges on the property.
3. After the bank has received the money from the buyer’s bank, it redeems the mortgage deeds and other debt on the property.
4. The bank informs the buyer’s lawyer that the mortgage deeds have been deleted, so the lawyer can receive the deed and other documents without remarks.
5. When all the documents are in order and the terms of the deal have been met, the purchase price is released to the seller.

Addendum (allonge) 
An allonge is an addendum to an agreement. For example, an allonge to the purchase agreement can be drawn up that changes, clarifies or extends the deal beyond what was agreed. This includes the purchase price, the handover day or other special agreements made by buyer and seller after the purchase agreement was signed. 

Clean deed (anmærkningsfrit skøde) 
A clean deed is obtained when the seller’s previously registered loans and easements on the property are cancelled from the land register (tingbogen) by the bank or the seller’s adviser. After that, the registration contains only the loans you as the new owner take out or take over on the property.    

Auction deed (auktionsskøde) 
An auction deed is used at an ordinary or forced auction where a home is sold. This is the deed that proves that you own the home and that you bought the property at auction and not through a normal transaction.

B

Bank approval
When buying property, money most often has to be borrowed from a mortgage lender or bank, which the buyer contacts in order to be approved to borrow the amount they need. The bank examines the buyer’s finances and a purchase certificate may then be issued. 

Bank loan
A buyer can borrow a maximum of 80% of the purchase price with a mortgage-credit loan. You can therefore finance the next 15% with a bank loan. As the buyer, you must put up the last 5% yourself. Since the bank loan is more expensive to finance because of the interest costs, you should focus on repaying it first. The term of the bank loan is most often 30 years.

Contribution rate (bidragssats) 
A contribution rate (or contribution) is a fee that mortgage-credit institutions charge to administer your mortgage-credit loan, and it is paid as part of the payment on the loan.
As stated in the loan terms, mortgage-credit institutions may change the contribution rate under specific conditions. However, they must warn you and inform you of any increases before they can change it.
The contribution rate depends on the type of loan you have and whether or not your loan has an interest-only period.

Property lawyer
An independent adviser for the buyer who, among other things, helps review all the documents of the deal and the purchase agreement in connection with a property purchase.

Home purchase certificate/loan certificate
A home purchase certificate shows how much you can buy a home for. With a purchase certificate you can show the estate agent and the seller of the home that you have been financially approved by your bank to buy the home in question. This is an advantage, as you can quickly make an offer and as the estate agent and seller will regard you as a serious buyer, especially if there are several potential buyers for the same property. 

Housing statistics
Figures outlining the development of home prices and more are available, for example, on Boligsiden and Finans Danmark.

Home automation 
Today homeowners can get intelligent home automation. Via an app on iPads, you can have the various light switches and other power sources in the home programmed to switch off/on with a single click. That way you can make sure no power sources are left on overnight, and likewise when you leave the house in the morning, you can make sure all the power sources you want switched off are switched off.

Home valuation 
A home valuation is an assessment used to find out what your home is worth in today’s market. For this, Brikk always offers a free, no-obligation valuation of your home.

Brikk Hub
The Brikk Hub is a unique platform that only Brikk offers. The Brikk Hub is a control centre that lets the seller follow and take part in the sales process. Here the seller can receive feedback after each viewing and communicate with the agent and buyers. The platform also makes it possible to collect feedback after each viewing and follow the home’s popularity online. The seller can likewise see appointments in their own calendar and gather the necessary documents and sign them online. We have the same tools as well-known online estate agents.

Offer
When you have decided that the home is right for you, the next step is to make a specific offer with a price and handover date. In most cases the purchase offer is written down as a purchase agreement or sent by email. The purchase agreement can become binding if the seller signs.

Structural survey (byggeteknisk gennemgang) 
A structural survey includes, among other things: a physical inspection of the property by the building surveyor, an oral and possibly written review of remarks found during the inspection, and a review of the condition report. A structural survey is for the buyer’s sake, to make sure the property has no hidden defects and the like.

C

Cphbusiness
At Cphbusiness you can take several programmes that give you the opportunity to work with property transactions. You can study financial advice, financial economics or take a finance bachelor’s degree at Cphbusiness. 
Another option for those who want to work with property transactions is to study general business economics, which you can do at several Danish universities such as Copenhagen Business School and the University of Southern Denmark.

D 

Danish Association of Estate Agents (Dansk Ejendomsmæglerforening) 
90% of Danish estate agents are members of Dansk Ejendomsmæglerforening. Membership of the association brings a number of benefits, such as access to certain services, which include, among other things: fee-free use of authorised forms, attractive further-training courses and professional seminars, the statutory liability and guarantee cover, the opportunity to be put forward as a valuer/assessor, the right to use the title “MDE” and more. Brikk is a member of Dansk Ejendomsmæglerforening.

Change of debtor (debitorskifte)
A change of debtor is drawn up when a new owner is, for example, to take over a loan registered on the property in the seller’s name. A change of debtor means that the previous name is changed to your name, so you can take over the loan.

Escrow of the purchase price
In most cases it is agreed that the property is sold as a cash transaction. Through a bank guarantee the seller can have their interests looked after and make sure the purchase price is paid. On the other hand, the buyer’s interests are looked after by the purchase price being held in escrow, which means it is not released to the seller until the deed has been registered to the buyer.

Documents
When you sell your home, you or your estate agent must obtain a number of documents about the home that are needed for the transaction. Many of these documents can be obtained automatically from public authorities. Many of the documents can be signed online. Brikk always does this via the Brikk Hub.

E

Capital gains tax on property (ejendomsavanceskat)
The profit the seller makes on the sale of real estate is taxed. This is called capital gains tax on property.

Property data report (ejendomsdatarapport) 
A property data report is information about the home in question that can be obtained from the public authorities. The seller’s estate agent is responsible for ordering and paying for the property data report as part of the property transaction. 

Property value tax (ejendomsværdiskat)
All homeowners pay what is called property value tax on their home. This tax is calculated on the home’s value according to the public property valuation. It is paid together with income tax.

Owner-occupied flat map
If a property is divided into owner-occupied flats, there is a map of all the flats. The map outlines the areas of the flats and can be found at: https://www.tinglysning.dk/tinglysning/landingpage/landingpage.xhtml

Owners’ association (ejerforening)
An owner-occupied flat is usually part of a community of owners, so as an owner you are obliged to be a member of the owners’ association. The association’s job is to run and maintain the common areas.

Change-of-ownership insurance
Change-of-ownership insurance covers hidden damage, defects and faults that may be present on the handover day but are not mentioned in the electrical installation report or the condition report.

Electrical installation report 
When property is bought and sold, an electrical installation report is usually drawn up as part of the home inspection scheme (huseftersynsordningen). This report contains information about the property’s electrical installations and is prepared after an authorised electrical contractor has inspected the house’s electrical installations.

Energy label
Energy labelling can be divided into two parts. One part consists of savings proposals, which show which improvements it would pay to make in the home, and the other is an assessment of the home’s energy costs.

Commercial (sale of commercial property)
The rules for selling commercial property differ from those for selling a private home.
Here are some important tips:
It is essential to start by finding out what the property you are selling is worth. To do this, you can look into what it has sold for before and what types of people/businesses have occupied it, which gives you a clearer picture of what a potential buyer would pay for the property and how the property fits the buyer’s needs.

Next, you need to have the property valued by an estate agent who specialises in commercial property and has access to Ejendomstorvet, where the property can be advertised. Brikk works with several specialists in the sale of commercial property.

F

Family transaction
A family transaction takes place when a deal is made between parents, children, grandparents and grandchildren. Here the property is traded on unusual market terms, which means it may be transferred at a lower value than it would have fetched had it been sold on the open market under current market conditions.

Reservation letter (forbeholdsskrivelse)
A reservation letter is drafted by the buyer’s adviser as part of the terms of the purchase agreement. However, this only happens if the deal was made subject to the adviser’s approval, and the approval can be given with certain reservations. All reservations must be approved by both buyer and seller so that agreement can be reached on the terms of the transaction. In addition, all reservations must be met before the transaction can be completed. 

Brokerage agreement (formidlingsaftale)  
If you sell your home through an estate agent, a brokerage agreement must be drawn up. This is a written agreement that the property is to be put up for sale. The brokerage agreement is a template made by Dansk Ejendomsmæglerforening.

The brokerage agreement must meet the following conditions: 

• The agreement must be in writing. 
• The agreement must be signed by both parties. 
• It must contain information about the responsible estate agent. 
• The size of the fee must be stated.
• The agreement must contain the valuation/asking price.
• Identification of the property. 
• The company’s CVR number must appear in the agreement.
• Special circumstances relating to the agreement must be stated. 
• Advice on the structural survey.
• Information to the seller about the home inspection scheme.

The brokerage agreement can run for as long as the seller wants. If a success-based fee has been agreed, and a fee must be paid on termination, the agreement can be entered into for a maximum of 6 months and extended by a maximum of 3 months.
Brikk is one of the few estate agents that allow the seller to terminate the brokerage agreement at a day’s notice at no cost.

Right of cancellation
As a buyer you have a statutory right to cancel your agreement to buy a property, provided the property is to be lived in by the buyer or members of the buyer’s family. The right of cancellation does not apply if the property is a farm, if the property is up for forced auction, or if the buyer is aware that the property is up for forced auction. 

Pollution form (forureningsskema) 
A pollution form is a document issued by the region that gives information about pollution on the plot in question, or about whether there is a risk of soil contamination on the plot. The form is included in the property data report.

Parent purchase (forældrekøb)
The term forældrekøb describes a transaction  where parents buy a property with the aim of renting it out to their children, or vice versa. You are encouraged to seek separate advice from an accountant, as there are different ways of doing this for tax purposes.

Viewings 
At a viewing, an estate agent, or you as the seller, will present your home to potential buyers who are interested in it. Brikk offers packages where you can either show your home yourself or leave this to one of our local experts. It is important that your property is presentable for every viewing and open house.

G 

Transparency
Transparency is a term describing something that is open, easy to understand or easy to grasp. This is an essential part of the service at Brikk, where the seller can follow the whole process on Brikk’s platform, the Brikk Hub.

Land tax (grundskyld) 
Land tax is a tax that all homeowners must pay, whether or not they live in the home. This tax is administered by the municipalities.
Land tax is based on the property’s value as stated in the public valuation. The basis of calculation is fixed every year as the lower of either the property’s latest land value or the previous year’s land value adjusted by 3-7%. In 2019 the adjustment percentage (also known as the land tax ceiling value) is set at 5,5%.
The per-mille rate to be paid can be found on the municipality’s website. The per-mille rate must be at least 16 and at most 34. The municipalities decide whether the tax is collected in 2 or 4 instalments and when these fall due

A temporary freeze scheme for land tax has been introduced for 2018-2020. During this period, nominal increases in land tax are frozen automatically (the de minimis threshold for frozen amounts is 200 kr.). The scheme cannot be opted out of, and the amount therefore accrues no interest during the period in question. The increases in land tax are paid when the property is sold.

Promissory note (gældsbrev) 
A promissory note is a declaration from the debtor in which they acknowledge that they will pay a specific amount to the recipient. A promissory note contains agreements on the interest rate, repayments and so on. It is recommended to have witnesses sign to confirm when the note was drawn up and signed. 

Debt factor (gældsfaktor)
A debt factor is a measure of how indebted you are. When you apply for a loan, banks use it to decide how large a loan they are willing to give you. The debt factor is calculated by comparing your gross income with your total debt. If, for example, you have a debt factor of 3, you can have debt that is 3 times as high as your income. 

Assumption of debt (gældsovertagelse) 
In an assumption of debt, the buyer deposits the purchase price in cash at the seller’s bank, after which the bank redeems any debt on the property using the deposited amount.

H

Fencing Act (hegnsloven) 
The Fencing Act is a law that applies when you put up and maintain a fence. Among other things, it explains what to do if you and your neighbour disagree about the fence between you, and how a fence inspection (hegnssyn) can help you through a possible conflict.

Home insurance
You arrange home insurance yourself through an insurance company. The damage a home insurance policy covers varies, so it is important that you read all the terms of the policy. Home insurance often covers damage arising from snow, fire, storm, frost, burglary and sudden water damage.

Home inspection scheme (huseftersynsordningen) 
The home inspection scheme covers the rules on who may carry out the home inspection and how a condition report must be prepared. It also contains the rules on how the building survey is carried out and its purpose. The scheme was created to protect you against unforeseen financial surprises when you buy or sell a home. It gives you the option of taking out change-of-ownership insurance.

Encumbrance (hæftelse)
An encumbrance on a property is a loan or security registered on the property, which must be taken over/cancelled in connection with the property transaction. 

I 

Undivided share (ideel anpart)
Instead of being divided into owner-occupied flats or being an ordinary 1-family house, many properties are held in undivided shares. This kind of split most often occurs in larger houses where, for example, the first floor and the ground floor are divided between two owners, each of whom therefore holds their own undivided share. This type of property is popularly called a villa flat (villalejlighed).

No activity on the home sale
Often it can be the seller’s own lack of self-awareness that slows the sales process down. Several factors can come into play if there is no activity on the home sale. One may be that the price is too high. The asking price is usually set in cooperation with the estate agent. However, many people price their home based on their own mortgage-credit loan rather than on the situation on the housing market, and for this reason the price can end up being set too high.

It may also be that the pictures taken of the home are not good or attractive enough. As a seller it is important to put a lot of effort into the pictures, which involves tidying and arranging the home before they are taken. One option is to contact a stylist and get good advice before the home is photographed. Brikk works with the country’s best home-styling firm and offers a free valuation of your home to make sure there is activity on your home sale. Online marketing is also important, as 93 % of all buyers come via the internet.

K

Cash loan (kontantlån)
A cash loan is a mortgage-credit loan where any price loss on the bonds is included in the interest rate. This loan differs from a bond loan, as that type of loan increases the loan’s principal (which is the loan’s market value). The interest on the cash loan is fixed when the cash loan is paid out or the price is locked in.

Because the amount you would normally lose on the bond price is converted into an interest expense, you can deduct it for tax purposes. This also means that any price gain when you redeem the cash loan is taxable, if the redemption does not take place at the same time as the sale of your home.

Cash price (kontantpris)
The cash price is the home’s real price. This price does not take into account the costs of financing the purchase with a loan

Cash down payment 
When you buy a house, you must put down an amount in cash. As a rule, you must be able to finance 5% of the total purchase price yourself.

Buyer’s agent (købermægler) 
A buyer’s agent is an estate agent who represents the buyer in the property transaction. The buyer’s agent has the same role as a property lawyer and reviews all the documents in the case. They also typically try to negotiate a reduction in the price for the buyer.

Buyer advice (køberrådgivning)
To get advice on the legal terms of the transaction and have the provisions and reservations of the purchase agreement reviewed, a buyer can invest in buyer advice. This also helps make sure the buyer is made aware of all the property’s circumstances and the transaction’s documents and so on.

Purchase agreement
A purchase agreement regulates the terms of a transaction. The purpose of a purchase agreement is that, once the agreement has been entered into, there is no uncertainty about the basis of the transaction.

Purchase offer (købstilbud)
When you have decided to buy a property, you make the seller an offer for it; this is called a purchase offer. In most cases this offer is written down as a purchase agreement, and if the seller signs, it becomes a binding agreement.
A purchase offer is usually an acceptance of the seller’s terms for the sale of the home, but you can propose your own terms in the purchase offer, for example by proposing a lower price. The seller has no obligation to accept a purchase offer and is free to receive several purchase offers at once.  

L

Loan-to-income ratio (lånegrad)
As a rule of thumb, you can borrow to buy a home with a cash price equal to 3-3,5 times your household’s annual income – unless you have other debt or high spending. So if you buy a home as a couple and have a combined annual income of 1.000.000 kr., you can typically take a home loan of around 3.000.000-3.500.000 kr. But if you have savings or equity in your current home, you can borrow for a home with a higher cash price than the rule of thumb indicates.
As a starting point you must have savings of 5% of the home price, which is used for the cash down payment, so it is important that you save up for your home.

Loan ratio (lånekvote)
The loan ratio for a property is based on the loan-to-value ratio (LTV). LTV is the percentage of the property value that is mortgaged. This is a decisive factor for lenders when they decide whether to grant a loan. As a rule, owner-occupied homes qualify for a loan at an LTV of 80%, as most lenders want to make sure that potential buyers are able to invest at least 20% of their own funds in the transaction.

LTV is calculated by dividing the mortgage-credit amount by the current value or the sales price. 
Example: assume the property value is 2.000.000 kr. and the mortgage on the property is 1.600.000 kr.; the loan ratio will then be 80%.

Loan options
When you buy a home, there are many different options for a home loan. The choice of home loan depends on how willing you are to take risks and the size of your savings.

Before you choose the home loan, it is important to draw up a budget of your fixed costs so you can decide how expensive a house you can afford to buy. Your bank adviser can help you set this up so you can work out a realistic disposable amount for a monthly budget. 
It is equally important that during this period you set money aside for maintaining the house, replacing white goods and technical installations, and possible renovation projects. If you are buying a house, an amount of around 100 kr. a year per m2 is a realistic starting point. 

The price of your future home
Most home buyers borrow money to buy their home. If you need to borrow 95 % of the home’s cash price, then as a rule of thumb you can afford a home with a cash price of 3, 4 or 5 times your household’s annual income. So if your household income is 500.000 kr., you can buy a house for about 2 million kr. If the household income is 1,5 million, you can buy a house for 6 million kr.
However, this rule does not apply if you have other debt or high spending.  

Different types of home loan 
In a home loan the loan amount is normally made up of the following parts:

• A mortgage-credit loan of up to 80% of the home’s value (or 75% in the case of a holiday home).

The mortgage-credit loan is typically the cheapest form of financing a home. The reason is that the mortgage-credit institution takes a mortgage on your house, so it runs a smaller risk when it lends you money for your home purchase. This also means it can offer more favourable interest terms. 

• A down payment of at least 5% of the cash price. 

• A home loan from the bank for the remaining amount. 

You can borrow the last 15-16% of the home’s total price as a home loan from the bank – this is called top-up financing or residual financing.
A home loan is more expensive than a mortgage-credit loan, as the bank has less security in the home than the mortgage-credit institution. The residual financing can also be arranged as a seller’s mortgage deed (sælgerpantebrev), where the loan terms are written in the mortgage deed.

Before you take out new loans you must decide which of the following options you want. 

• Variable or fixed interest

Here you run a greater risk of unpleasant changes in your finances if you choose a loan with a low or variable interest rate than if you choose a loan with a higher, fixed interest rate.

• Repayment or interest-only

You can choose an interest-only loan whether you take out a fixed-rate or a variable-rate loan. This is a loan where you pay the interest but do not repay the loan itself. There is usually an agreed interest-only period, after which you must start repaying the loan or switch to a new interest-only loan.

• Long or short term

A loan will typically be repaid over a period of between 10 and 30 years. The shorter the period over which the loan is repaid, the heavier the cost of fees and charges on the loan, as you have fewer years to pay back the costs. 

You can get help from either your bank adviser or an independent adviser to calculate the monthly payment for several different loan types and to calculate the payment on the variable-rate loan in the event that interest rates rise.
As it is not possible to predict which direction interest rates will move, it is important to consider which loan types suit your finances best. There must also be room in your budget for any interest rate rises. Each bank will put together a financing solution for you, but it pays to look into offers from different banks and mortgage-credit institutions, as their prices and terms can differ.

Fees and other costs arise when buying a home 

In addition to interest and other costs to the bank, mortgage-credit institution and the state, the following costs arise: 

• Loan processing fee to the bank of between 2.000 and 4.000 kr. 
• Fee to the mortgage-credit institution of 2.000 kr. for processing the registration. 
• Registration fee to the state of 1.640 kr. 
• Registration duty to the state of 1,45% of the loan. 
• Contribution to the mortgage-credit institution, which is set according to the size of the share of your home you borrow for. This means that the larger the part you borrow to pay for the property, the higher the contribution rate. 
• Price spread of 0,2 – 0,3 price points. This is a one-off cost on a fixed F1 loan, which is refinanced annually.

Farm/rural property 
A farm is registered with an agricultural obligation (landbrugspligt) and covers more than 200.000 m2 (2 hectares). A rural property is under 200.000 m2 and is therefore not subject to an agricultural obligation. 

Advice is important when buying a farm, because a registration duty must be paid that is calculated on the higher of the purchase price and the latest valuation. A farm is also sold without a condition report being prepared, so you must carry out thorough structural investigations yourself before you buy.

M

Marketing my home 
Marketing your home is an essential factor in a quick home sale. The internet’s countless possibilities have given estate agents a range of tools that let them reach as many potential buyers as possible.

The marketing typically consists of the following elements

• Preparation of sales material and sales brochure  
• Online advertising 
• Viewings and open house 

Preparing the sales brochure involves writing text and factual information, taking pictures and making a floor plan for your property advert. The rules on what information must be included in the sales brochure can be found in the executive order on property brokerage (formidlingsbekendtgørelsen). 

The sales brochure should be seen as a written viewing of your home and an appendix to the future purchase agreement. A good sales brochure contains a thorough, enticing description of the property and good professional pictures. 

The sales brochure has two main functions: 

• It must highlight the home’s qualities and support the sale
• It must give the buyer relevant, mandatory and up-to-date information about the home.  

The sales brochure is important for the buyer and is regarded as an integral part of the terms of sale, as the buyer can expect to get what they are told. The buyer is entitled to everything stated in the sales brochure, even if it does not appear in the purchase agreement. As a seller it is therefore important that you check that all the information in the sales brochure is correct, as you risk becoming liable for damages for incorrect and misleading information.

The vast majority of people who want to buy a home start with an online search. Brikk has access to the major portals. If you choose Brikk as your estate agent, your home will be shown on Boligsiden and Boliga, among others, and special online campaigns are also run specifically for your home.

Property swap (mageskifte)
Mageskifte describes a seller and a buyer choosing to “swap homes”. As property values are rarely equal, one party will pay the other the difference in value.

Defects
There is a defect when what was bought does not match what the parties agreed, a guarantee given or the buyer’s legitimate expectations. If the matter is something the buyer should have discovered by examining the property and the information about it, it is not a defect in the legal sense.

Estate agent’s fee
Estate agent’s fee (mæglersalær) is a term describing an amount the customer pays for a service from an estate agent. Brikk offers the country’s lowest fee, starting from 12.500 kr. including VAT.

New tax rules
When you buy a new owner-occupied home you must follow these 5 steps: 

1. After you have signed and received the deed to your property, you as a homeowner are obliged to register and report this to the Danish Tax Agency (Skattestyrelsen). 
2. When you buy a home, you must update your preliminary income assessment (forskudsopgørelse) as follows: register your new property and enter the interest costs on your home loan, so that you get the deduction during the year.
3. If you move more than 12 km away from your work you can apply for a commuting deduction. This can affect your preliminary income assessment.
4. Once your new home is registered on your preliminary income assessment, you automatically pay property value tax through your personal tax. You can see the calculation of your property value tax on your annual statement.
5. You must pay land tax to your municipality (see the Land tax section). The municipality is informed automatically about your new home. The municipality will send you a payment slip where you can see the final amount you must pay in land tax. You can find your municipality’s land tax rates at www.borger.dk.  
7. At the bottom of your annual statement you can see your current property valuation. Alternatively, you can also look it up at www.vurdering.skat.dk.

If you buy a home with a spouse or others, the property value tax is split by each of you entering your share of the interest on the preliminary income assessment. 

Land tax (grundskyld), also called property tax (ejendomsskat), is a tax on your land value, which you pay to the municipality via a payment slip twice a year. The land value describes the value of the plot in an undeveloped state. 

Property value tax is a tax on your property value that is paid to the state. The property value is the value of the real property, including the plot and buildings – this does not apply to cooperative housing (andelsbolig), however. 
Property value tax must be paid from the day you move in (which must be entered on your preliminary income assessment) until the day you move out. The tax is built into your tax card, so you pay it through your withholding rate. If you are self-employed, you will be sent a payment slip.

O

Public property value 
The public property value is calculated by SKAT (the Danish tax authority) in October. It is based on information about the property as recorded in the public registers. 

Duty of disclosure 
As a seller you have a duty of loyal disclosure about the property’s condition. This means that all matters concerning any defects and faults in the property that the seller is aware of must be disclosed to the buyer.

Handover date 
The handover day is the fixed date stated in the purchase agreement on which the buyer takes over the property.

P 

Mortgage deeds 
A mortgage deed (pantebrev) represents security in the property for a loan taken out by the property’s owner.

Price check 
A price check of a home is a review of the area’s most recently reported prices per square metre compared with the publicly available information about the home’s location and size. You can get an online price check at brikk.dk

R

Settlement statement (refusionsopgørelse)
A settlement statement sets out the breakdown of the property’s costs, which are divided between the seller and the buyer according to the handover day.

Complaint (reklamation) 
The seller has a responsibility when it comes to hidden defects and faults. The period is 10 years, after which no further claims for defects can be made against the seller. If the buyer wants to hold the seller responsible for any defects, the buyer must complain within a reasonable time.

Outstanding debt 
Outstanding debt is the amount you owe on a home loan.

Mortgage-credit loan
A mortgage-credit loan is the cheapest loan option available. This loan may account for at most 80% of the purchase price for a year-round home and 75-60% for a holiday home.

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Case coordinators
A case coordinator is someone who organises and structures the tasks connected with your sale, such as obtaining the statutory documents, advertising the home on property portals, preparing the purchase agreement and handling the after-sale administration.

Sales process
A sales process consists of 3 overall phases: 

1. Valuation

The first thing that happens during a sales process is a valuation meeting with an estate agent.  Here the estate agent and you as the seller draw up a brokerage agreement and a sales budget, where you will see your proceeds from the sale based on the valuation price.

2. Sale launch and marketing

During this phase the estate agent will send a photographer to the seller’s home to take photos and make a floor plan for use in the sales brochure and marketing. A condition report, electrical installation report and energy label are then also prepared, if it is not a flat that is being sold. The home is then shown to potential buyers.

3. Purchase agreement and after-sale administration

When the buyer has been found, the purchase agreement is drawn up and signed by both seller and buyer. The buyer will typically have a lawyer’s reservation, under which their legal adviser reviews the documents connected with the purchase agreement. Should any questions arise from the adviser, our agent will handle, answer and clarify any reservations.

The buyer pays the first part of the purchase price (the down payment) to the estate agent, then chooses the form of financing and secures a bank guarantee for the remaining amount. Your bank is then notified and starts paying off your debt on the property (unless the buyer takes over the debt by agreement). 

Sales valuation
With a sales valuation, Brikk’s local experts offer to help you establish the price of your home as a free, no-obligation service. This is often decisive in whether the seller chooses to sell their home or not. The potential price is assessed on the basis of the home’s size, layout, type, location and condition. To calculate an accurate valuation of the asking price, our estate agent needs documents such as the BBR owner notification (from the Danish building register) and the control code for the mortgage loan.

Co-ownership agreement
A co-ownership contract (samejekontrakt) is drawn up if several people are buying the same property and want to secure the terms for any division of the purchase price on a sale, or the general terms for a resale, should a cohabiting couple separate or one party pass away.

Probate court certificate 
Drawn up if an owner should pass away. It determines who takes over the home and thus holds the legal right to the property afterwards. 

Deed drafting 
Deed drafting is the preparation of a deed (skøde) that includes an adjustment of the sale’s purchase price and handover date. Once drawn up, the deed must be signed by both parties with NemID, as the registration of the deed takes place digitally. The Land Registration Court will then review the provisions of the deed and approve it. 

The seller’s responsibility
As the seller of a property, you have a duty to meet the requirement of “the seller’s duty of loyal disclosure”. This means that the seller is obliged to disclose all information about the property that may influence the buyer’s decision on whether to buy the home. The seller is likewise liable if they have given a guarantee or incorrect information.

Seller’s mortgage deed 
A seller’s mortgage deed (sælgerpantebrev) is a loan document that gives the lender proof of what has been pledged as security. In connection with a home purchase, the bank is typically the lender and takes a mortgage on the home. This means the bank holds security in part of your home. By law, seller’s mortgage deeds must be registered, so that they are publicly recorded in the land register (tingbogen).

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Will
For a couple moving in together, it is worth considering making a will. A will ensures that the surviving partner inherits as much as possible should the unexpected happen and one of you pass away. If you have children, this means that, initially, the children inherit only their compulsory share, and the surviving partner then inherits the rest of the estate.

Condition report
A condition report describes the condition of a home compared with other homes of the same age and type. When selling a home, the seller can choose to have a condition report prepared, which is a written assessment of the home’s condition. Although a condition report is not required by law, in most cases it benefits both the buyer and the seller in the transaction. This applies especially to the seller, who is then released from their 10-year liability for faults and defects.

Land registration
Land registration (tinglysning) is the court’s public recording of various rights. It is a binding (legal) statement. In relation to the sale of a home, a mortgage loan can therefore be registered, which means that the loan is binding. 

Land register certificate
A land register certificate (tingbogsattest) is a printout of what is registered on the home in the land register. The certificate also states the date on which it was issued and what was registered on the home as of that date.

Registration fee
The rules on the registration fee (tinglysningsafgift) are set out in the Danish Registration Fee Act. SKAT (the Danish tax authority) has produced a guide to the registration fee, available at www.skat.dk 

Power of attorney for registration 
If, for example, you want a lawyer to be able to sign registration documents on your behalf, you need a power of attorney. There are both digital powers of attorney, which can be created directly at www.tinglysning.dk, and paper powers of attorney, which must be filled in and signed. The Land Registration Court recommends using the digital powers of attorney.

Forced auction 
If you do not pay interest or instalments on time, the consequences can be serious. The creditor who lent you money secured against your home can have the home put up for sale at a forced auction in the enforcement court in order to get their money back. SKAT can do the same if you do not pay your property taxes.

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Renting out
For many homeowners, renting out their home is a good alternative to selling. This way, you can see how the market or housing situation develops.
You can rent out your home through sites such as Boligportalen. You can likewise rent out individual parts, such as a room. You do this by creating a rental listing, and with the help of search criteria you can get in touch with exactly the home seekers who match your wishes.

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Valuation
A valuation is an assessment of the financial value of your home. Brikk’s estate agents can value your home free of charge and with no obligation. The value is calculated based on the size, layout and condition of your home 

Business valuation 
A business valuation is the basis for the price level that can be expected when selling a company. It can be relevant to the company in many situations. Besides a sale, there may be other reasons why you need to know the value of a company.

If capital needs to be raised, an independent party must assess and determine what the company is worth before a loan is applied for at the company’s bank. Should disagreements arise among the owners bound by the company’s shareholders’ agreement, one of them may withdraw as an owner. In that case, the departing owner must be paid their share at a specific market price.

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Prenuptial agreement
When you enter into a prenuptial agreement as a buyer, you can decide for yourself how things are to be divided if the marriage were to be dissolved.  

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Financial advice 
When buying a home, buyers are always encouraged to seek financial advice in connection with the purchase. Most often, the financial advice is provided by your own bank. However, it is also possible to bring in an independent financial adviser, who guides the buyer to the most advantageous choices when it comes to financing.

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Open houses 
At an open house, the estate agent will generally be ready to show your home to potential buyers who are considering buying it. These buyers visit your home without booking, on a particular date at a scheduled time. Here they have the chance to ask the estate agent a lot of questions about the home.
You can read more about how to hold the perfect open house on the Brikk Blog: https://www.brikk.dk/gode-raad-til-afholdelse-af-det-perfekte-aabne-hus-bolig/