A chain clause (Dutch “kettingbeding”) is an obligation set out in a deed of sale or transfer that the buyer must impose on every subsequent buyer of the property or plot. In this way the obligation stays linked to the successive owners like a “chain”. Because such a personal obligation does not transfer automatically, a penalty clause is often added: whoever fails to pass on the obligation forfeits a penalty.
How it works
- The original agreement (about maintenance or use, for example) is a personal right, not a real right that passes with the land automatically
- Therefore the obligation is re-imposed at every sale through the notary
- The penalty clause makes it attractive to continue the chain properly
Application
- Maintenance agreements — for example shared upkeep of a party wall, path or dam
- Use restrictions — no business at home, keeping a particular designated use
- Appearance — agreements on building, fencing or planting in a new housing estate
Points to note
- Read the transfer deed carefully before buying; a chain clause can impose obligations you do not expect
- Unlike an easement (a real right), a chain clause works through personal obligations and penalties
- If in doubt about its scope, ask the notary for clarification
Related terms
- Easement
- Land registry
- Zoning plan
- Boundary fence
- Building line
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