
Real Estate & Government
Penalty clause in NVM contracts is less often fully awarded
28 April 2026
The standard Nederlandse Vereniging van Makelaars (NVM) residential purchase agreement provides that if one of the parties fails to comply with its obligations under the agreement, the other party may terminate (rescind) the contract. The defaulting party must first be given formal notice of default. Upon termination of the agreement, the defaulting party will generally forfeit a penalty of 10% of the purchase price.




