The government is to take action following a series of fraud cases in the last few years in which it has been impossible to successfully prosecute those responsible. This will mean tighter regulations for estate agents, lawyers and mortgage brokers.
Dutch Justice Minister Ernst Hirsch Ballin and his home affairs team are currently drafting a set of measures to crack down on fraud and money laundering in the property sector.
Lack of transparency is regarded as the main reason that fraudsters are not being caught. Part of the new rules will be to increase supervision and improve transparency in the property sector.
In particular estate agents, valuers and notaries will have to prove the integrity of their transactions, providing authorities with clearer information about their operation methods, and help prevent mortgage fraud.
Notaries will also have to make their files available to authorities for scrutiny to curtail lawyer-client privileges.
A real estate intelligence centre is to be established in which the Dutch public prosecution department, tax authorities, financial and economic offence investigators, and the police will collaborate closely.
Also, a new warning system will be set up under which the Dutch Land Registry will warn notaries of what are known as ABC transactions, where a property repeatedly changes hands in a short period of time with huge profits.
The Dutch Association of Institutional Property Investors welcomed the move. It has been warning about the lack of supervision particularly after a recent high profile case involving a pension fund and its property investments.