What every property seller and buyer needs to know about foundations: new obligations in property transactions.

Anyone buying or selling a property tends to focus on the asking price, the location or the condition of the roof. However, what lies beneath the ground is easily overlooked. Yet the foundations literally form the bedrock of every property transaction. Faulty foundations can lead to tens of thousands of euros in repair costs, lengthy legal proceedings and a significant reduction in a property’s value.

The property market is responding to this reality. New obligations have been in force since 1 April: from now on, valuers are required to include an assessment of the foundation’s condition in every valuation report, using the updated Valuation Report for Residential Property template. This is an important step that affects both buyers and sellers — and one that the property sector must take into account.

From 1 April 2026, every property valuation report will contain information about the foundations.

The Dutch Homeowners’ Association (Vereniging Eigen Huis) calls this an important step, but also states that because this information only comes to light late in the buying process, it poses a risk, as an increased foundation risk can now have consequences for the financing and the further course of the purchase.

After all, for lenders, a property serves as the collateral for the mortgage. With better and clearer information on foundation risks, banks can better assess these risks when granting a mortgage.

Homebuyers should therefore be given clarity about the foundations of the property they are buying at an earlier stage, according to Vereniging Eigen Huis.

What risks are associated with foundations?

Foundation problems rarely arise overnight. They develop gradually, often invisibly, until the damage becomes apparent. The most common causes are:

● B Ground subsidence due to peat oxidation or settlement of the subsoil

● B Wood rot in wooden foundation piles as a result of fluctuating groundwater levels

● B Groundwater level fluctuations due to drought or climate change

● B Ageing of concrete or brick foundation elements

The consequences are tangible: cracks in walls and ceilings, sagging floors, doors and windows that no longer close, and, in serious cases, structural instability. Precisely because these defects can remain hidden from view for a long time, the risk in property transactions is significant.

The legal relationship between buyer and seller

The seller’s duty to disclose

Under Dutch property law, the seller has an active duty to disclose. This means that known defects — including foundation problems — must be disclosed to the buyer in a timely and comprehensive manner. The seller cannot hide behind the argument that they said nothing if they knew, or could reasonably have known, that the foundation posed risks.

Failure to do so can have far-reaching consequences: in such cases, the buyer may claim compensation, partial rescission of the purchase agreement or, in serious cases, complete annulment of the sale on the grounds of fraud or mistake.

The buyer’s duty to investigate

At the same time, the buyer has a responsibility of their own. A buyer is expected to actively investigate the condition of the property. A structural survey is an obvious tool for this, particularly for older properties or buildings in areas with an increased risk of foundation problems.

In legal practice, the seller’s duty to disclose outweighs the buyer’s duty to investigate. Nevertheless, a buyer who ignores obvious signs may weaken their legal position if they subsequently claim for repairs or compensation.

The new valuation requirement: risk categories A to E

The core of the new rules is the introduction of a standardised risk classification for foundations. Valuers are obliged to classify a property’s foundation into one of five categories:

This categorisation gives buyers an immediate insight into the condition of a property’s foundations, without them having to interpret the meaning of specific technical findings themselves.

When is a QuickScan required?

For properties classified in category D or E, a so-called QuickScan is recommended. This is a preliminary foundation survey in which, based on available data and a limited inspection, it is determined whether there are any indications of structural problems.

A QuickScan does not replace a full foundation survey. It serves as an initial filter: if the QuickScan raises concerns, a more extensive technical survey will generally follow. It is important for buyers and their advisers to schedule this survey at the appropriate stage in the purchase process — preferably before signing the purchase agreement.

The foundation clause: contractual protection for the buyer

A practical tool for managing foundation risk contractually is the foundation clause. This clause in the purchase agreement gives the buyer the right to rescind the sale — or to renegotiate the price — if further investigation reveals that the foundations are defective or that there is an increased risk of damage.

The clause offers the buyer a legal safety net and prevents them from being faced with unforeseen, high repair costs after the deed has been signed. For sellers, a well-drafted clause also provides clarity: it enforces transparency and prevents liability risks later on.

Practical advice: Formulate the foundation clause as specifically as possible. State what type of survey will be carried out, within what timeframe, and on the basis of what outcome the contract may be rescinded. Vague clauses lead to disputes in practice.

What does this mean for real estate practice?

The new valuation obligations are more than just an administrative change. They mark a shift in the way foundation information is handled in property transactions: from an overlooked detail to a standard part of the sales process.

For legal advisers, this means they must proactively inform their clients — both buyers and sellers — about:

● The content and scope of the valuation report

● The risk category of the property in question

● The necessity of a QuickScan for category D or E

● The possibility and advisability of a foundation clause

Thorough preparation reduces the risk of disputes later on and promotes a transparent property transaction.

Frequently Asked Questions (Q&A)

What are the new rules for valuation reports as of 1 April?

Since 1 April, valuers must include information on the condition of the foundations in every valuation report. The foundations are classified into a risk category ranging from A (low risk) to E (confirmed problem).

What does category D or E mean in a valuation report?

A classification in category D or E indicates an increased risk or an already identified foundation problem. In that case, a QuickScan is recommended to further determine the nature and severity of the problem.

What is a QuickScan for foundations?

A QuickScan is a preliminary investigation into the condition of the foundations. Based on available data and a limited inspection, an assessment is made as to whether there are any indications of foundation problems. It is not a full foundation survey.

Is the seller obliged to report foundation problems?

Yes. Under the duty of disclosure, the seller is obliged to actively report known defects, including foundation problems, to the buyer. Concealment may lead to liability for damages.

What is a foundation clause and when is it advisable?

A foundation clause is a provision in the purchase agreement that gives the buyer the right to rescind or renegotiate the sale if a foundation survey reveals problems. It is advisable for any property where foundation risks cannot be ruled out in advance.

Does a buyer have to arrange a foundation survey themselves?

The buyer has a duty to investigate. A structural survey, whether or not combined with a QuickScan, is an effective way of assessing the condition of the foundations prior to the sale.

What are the consequences if a seller conceals foundation problems?

The buyer may claim compensation, partial rescission of the purchase agreement or annulment of the sale on the grounds of mistake or fraud, depending on the specific circumstances of the case.

Questions?

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