A) Internal effects: effects to the right itself and the entitlement
The Netherlands operates a deed system. The acquisition of property rights through the registration of the notarial deed of transfer is compulsory. Registration of this deed is thus constitutive. The acquisition of property is not accompanied by a proof of ownership (title), but by a reliable presumption of ownership that can be derived from the sequence of registered deeds in which the property has been transferred from one owner to the next.
The highest degree of security is obtained by authorizing notaries to authenticate these different deeds. However, it always remains possible that because of a defective title of a former acquirer the listed owner is not the legal owner.
B) External effects: effects to third parties
The information provided by the Land Registry and the Cadaster is not guaranteed to be correct and complete. The reference from the Cadastre to the Land Registry is yet guaranteed to be correct. With regard to facts that are not published in the Land Registry, the Civil Code contains a system of protection. Namely, if a person fails to register a relevant legal fact in the Land Registry, a third party who does not have knowledge of this fact, is protected. This means that he can ignore a fact which is not registered. In addition, if the facts that are registered in the Land Registry appear to be incorrect, then this circumstance cannot be invoked against third parties who are in good faith.
C) Different kinds of registration and its effects:
With regard to the external effects, the protection offered to third parties in good faith against the completeness of the Land Registry does not apply to prescription, facts have to be registered in a different registry, the rejection or acceptance of an estate, as was well as to the legal order of succession and wills if a period of three months following the death of the testator has not yet passed.
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