Huurkoop

Hire purchase is a special form of instalment purchase under Dutch law, governed by Book 7 of the Civil Code. The seller retains legal title to the goods until the buyer has paid all instalments, at which point ownership transfers automatically.

This arrangement protects the buyer through stringent disclosure obligations, a cooling-off period and rules governing termination and repossession. It prevents consumers from entering into major purchases without adequate financial means.

In practice, hire purchase is commonly used to finance cars, furniture and household appliances, and the agreement must be concluded in writing.