Ask about the foundations before you sign, owners lobby warns

Homeowners’ association VEH is warning buyers that they could find themselves in financial problems because of new regulations covering property taxation reports.

From April 1, each taxation report – drawn up by independent taxation specialists and paid for by buyers – will include an assessment of the state of the property’s foundations, given as A to E. Taxation reports are needed for a mortgage and a score of D or E means further research will need to be done before they can be completed.

But the report is only drawn up once a deal to buy a property has been agreed – and that means buyers don’t know about potential problems which could affect the price and how much they can borrow.

“Don’t wait as a buyer for the taxation report,” the lobby group says. “When you are visiting a property, ask the selling agent about the foundations. They have access to information and what is known about a given property. That way, you can get a better idea about the potential risks and use that when deciding whether or not to buy.”

In a worst-case scenario, a poor foundation score could lead to buyers being refused a mortgage or the bank setting additional conditions on the loan, the lobby group said.

An estimated 500,000 homes in the Netherlands could have problems with their foundations, and repairs cost upwards of €60,000, depending on the size of the property.

The VEH says buyers should include a clause making a sale subject to the foundation report in the house purchase agreement. House technical surveys do not include a check on the foundations.

“Buyers need to be alert,” says VEH spokesman Nico Stolwijk. “We think estate agents have an obligation here as well.” Estate agents are required by law to tell buyers if there is an issue with the foundations.