Deed Registration
Deed registration is an important step in completing the transaction. A deed must be prepared and registered, and only when you have a signed and encumbrance-free deed will the purchase price be released. The buyer thereby receives their property at the same time as the seller receives their money. Often the exchange happens on the transfer date.
When the deed is to be prepared and registered, it is important that everything is done correctly to save time and money. However, there are no requirements about who performs the work, but it can be advantageous to have a professional handle it. Often this is the buyer's advisor. Furthermore, there is no requirement that a purchase agreement exists in a property transaction, which is most often seen in family transfers of real estate, but it can be advantageous as any disagreements will then be documented in writing.
What is deed registration and why is it important?
Deed registration is the legal process where ownership is officially transferred from seller to buyer. This takes place via tinglysning.dk and is a legal requirement for all property transactions in Denmark.
The process ensures that the change of ownership is officially registered, and that the new owner receives legal protection for their property rights. Without registration, the buyer cannot prove their ownership to third parties.
Preparation
Before you begin deed registration, the buyer must be able to answer "Yes" to the following questions. In this guide, we have included the relevant questions for a transaction between private individuals regarding a standard year-round residence or secondary homes (e.g., summer houses). Include the questions and answers in the purchase agreement or get it in writing. You should also have prepared and signed a purchase agreement with the buyer before you begin registration.
Other questions are also relevant if the transaction is not between private individuals or does not concern a standard year-round residence or secondary homes. See additional information at domstol.dk/tinglysningsretten
Approaches
Below we list the three most popular options for preparing and registering the deed.
Option 1: Buyer's advisor
The advantage of having a professional advisor handle it is that if something goes wrong, the advisor's liability insurance covers it. It is normally the buyer's advisor who performs the completion, and the buyer pays their fee. Therefore, you only need to clarify who pays the registration fee.
What do you need to do?
Agree in the purchase agreement that the buyer's advisor performs the completion
Provide the necessary information to the buyer's advisor
Sign the deed digitally via MitID
Wait for registration with encumbrance-free deed and release of purchase price
Option 2: Seller's advisor
The advantage of having a professional advisor handle it is that if something goes wrong, the advisor's liability insurance covers it. If your advisor is to perform the registration and release the purchase price, it may cost you a bit more. Make sure to clarify this in advance with the buyer and possibly write in the purchase agreement who pays the expenses. We have included a link to a website that lists most lawyers in the country.
What do you need to do?
Agree in the purchase agreement that the seller's advisor performs the completion
Provide the necessary information to the seller's advisor
Sign the deed digitally via MitID
Wait for registration with encumbrance-free deed and release of purchase price
Option 3: Buyer/seller
There is no requirement for who should handle the deed registration, so if neither the buyer nor you have an advisor to represent you in the transaction, you can choose which of you handles the completion (register the deed and prepare the settlement statement). It is usually written in the purchase agreement who handles the completion, and it is typically the same person who ensures the purchase price is released. This requires thorough preparation and understanding of the process.
What do you need to do?
Log in to tinglysning.dk with MitID under 'Tinglysning mv.'
Select 'Ny anmeldelse' and fill in all necessary and relevant information
Both parties sign digitally with MitID
Pay the registration fee
Good advice
Get help from an advisor
It is important that deed registration is done correctly to avoid costs in terms of time and money.
Consult with your bank
Your bank must be informed about the sale and can help coordinate repayment of existing loans as well as set up new ones and release of purchase price.
Document who pays the registration fee
The registration fee is typically calculated as 1,850 DKK + 0.6% of the purchase price, but can vary. It can be a significant expense to be liable for if it is not clear who pays.
Read up on registration
If you are to register the deed yourself, you should read up on the process and its guidelines. Including how different types of mortgage deeds should be handled.