Enforcing a settlement without a court judgment: how a notarial settlement agreement works

Picture this: as an entrepreneur, you have been locked in a dispute with a customer for months. After long negotiations, you finally reach a settlement. You will be paid, what a relief. Until the other party fails to pay the agreed amount in full. What now? In most cases, the answer is sobering: to court, sometimes for a second time. A procedure, more legal fees, and long waiting times — sometimes years. Only then can you proceed with executory attachment (in Dutch: executoriaal beslag).

There is a faster, cheaper route provided the other party, ultimately, cooperates, sometimes only after the necessary legal pressure has been applied. If you record the settlement in a notarial settlement agreement (in Dutch: notariële vaststellingsovereenkomst), and if it is carefully drafted, you can enforce it directly in case of default, without a court judgment. The bailiff can start collection / foreclosure proceedings within days. For entrepreneurs facing a resolvable payment dispute, this is one of the most underused instruments in Dutch procedural law.

What is a settlement agreement?

A settlement agreement (in Dutch: vaststellingsovereenkomst, abbreviated VSO) is governed by Section 7:900, paragraph 1, of the Dutch Civil Code. Under that provision, parties bind themselves — in order to end or prevent a dispute — to an arrangement they have agreed upon. A settlement agreement may even depart from rules of Dutch law in certain respects, which is one important reason why this instrument is so useful in commercial disputes.

A settlement agreement may be concluded privately, without a notary. That is usually inexpensive and fast. But it comes with a major drawback: a private settlement agreement remains an ordinary contract. If the other party fails to perform, you must — as with any other contract — first obtain a court judgment before you can begin enforcement.

The notarial form: directly enforceable

The critical difference arises when you have the settlement agreement recorded in a notarial deed. Under Section 156, paragraph 2, of the Dutch Code of Civil Procedure, a notarial deed is an authentic instrument. Authentic instruments provide conclusive evidence between the parties. And -decisively for practice- an enforceable copy (in Dutch: grosse) of a notarial deed executed in the Netherlands constitutes an enforceable title under Section 430, paragraph 1, of the Dutch Code of Civil Procedure that translates to:

“The enforceable copies of Dutch court judgments, of Dutch court orders and of authentic instruments executed in the Netherlands, as well as of other documents designated by law as an enforceable title, can be enforced throughout the Netherlands.”

Under Section 50 of the Dutch Notaries Act, the notary will issue this enforceable copy to every party to the deed upon request. In plain language: you obtain a document that is issued “in the name of the King” and it carries the same enforcement power as a final court judgment. On that basis, the bailiff can attach bank accounts, inventory, receivables, or where applicable immovable property, without any judge having to be involved.

A practical example

An example from my practice: an American restaurant chain ordered professional equipment from a Dutch supplier, with a down payment of more than € 180,000. The supplier delivered only a portion of the equipment and what was delivered was, according to the buyer, partly damaged. A heated dispute over non-performance followed. Under the threat of formal legal proceedings, a settlement was reached: the supplier would repay € 125,000 in four monthly installments of € 31,250, while the buyer would keep what had been delivered.

I had this settlement recorded in a notarial settlement agreement. It contained the key clause: “All dates and deadlines mentioned in this deed are strict deadlines. By the mere expiry of the deadline, [party X] shall be in default, with the result that the entire Claim shall immediately and fully become due and payable. In that event, this deed shall serve as an enforceable title for enforcement.” If a deadline had been missed, the buyer would not have needed a court judgment: the bailiff could have started immediately. In this case, every installment was paid on time.

Not every deed is an enforceable title

A notarial deed is, however, by no means always a title that can be enforced right away. This is where many practitioners — and, unfortunately, some notaries — go wrong. The precise wording is critical; words matter, so to speak. The Dutch Supreme Court imposes strict requirements on the contents of a deed that can be enforced directly. Rightly so. In the leading judgment of Dutch Supreme Court, 26 June 1992, ECLI:NL:HR:1992:ZC0646 (Rabobank/Visser), the test was formulated as follows: a notarial deed has enforceable power only with respect to claims that already exist at the time the deed is executed and that are adequately described in the deed, or claims that have their immediate basis in a legal relationship that already exists at that time and is described in the deed.

In practice, the mortgage deed is the most common notarial deed that can be directly enforced. The question that then arises is whether the same applies to a residual debt. By no means always. In Dutch Supreme Court, 8 February 2013, ECLI:NL:HR:2013:BY4889 (Rabobank/Donselaar), the Supreme Court clarified that the claim must be described in the deed with sufficient specificity. A general catch-all clause covering any future claim is not enough. This means that the bank does not always win.

Very recently, in Dutch Supreme Court, 28 November 2025, ECLI:NL:HR:2025:1807, the Supreme Court confirmed that this test applies equally to the official record of a settlement reached during a court hearing. That record is also an authentic instrument eligible for summary enforcement. In that case, the parties had agreed on a penalty of € 100,000 per breach of a non-disclosure clause. When the claiming party sought to collect € 200,000 in penalties, the Supreme Court ruled that the amount of future penalties was not sufficiently determinable. No enforceable title, therefore.

The lesson is clear: a settlement containing undetermined or conditional obligations is too risky as an enforceable title, whether it is recorded in an official court record or in a notarial deed. Concrete amounts, strict deadlines, and clear triggers for default are essential.

Three routes to amicable dispute resolution compared

Which route to a settlement best fits your situation when you want to resolve a payment dispute? Three main variants occur in practice.

1. Private settlement agreement. Inexpensive and fast. No enforceable title. In case of non-payment: litigation, in principle with the option of conservatory attachment (in Dutch: conservatoir beslag) first.
2. Official court record of settlement. Available only during ongoing court proceedings, so not entirely amicable. The enforceable copy carries enforcement power, but, as the 2025 Supreme Court judgment underlines, only for sufficiently specified claims. In other words: the lawyer must pay very close attention during the hearing so that the judge records the settlement with precision.
3. Notarial settlement agreement. Notary fees up front — typically between € 1,500 and € 3,500 (excluding VAT) for an average business matter, and I usually arrange for the debtor to bear these costs. In return, direct enforcement is available in case of non-payment. This route is appropriate when the parties do agree on a settlement, but there is no complete confidence in the will or ability to perform. In other words: trust is good, a notarial settlement agreement is better.

When is a notarial settlement agreement not the right choice?

Claims that remain genuinely contested can ultimately only be enforced through the courts. And for settlements without a monetary component, or in which the payment obligations depend heavily on uncertain future events, the notarial deed does not work well.

In matters involving substantial payment obligations, staggered repayments, or installment schedules, by contrast, the notarial settlement agreement is an excellent instrument.

Frequently asked questions

What is a notarial settlement agreement?

A settlement agreement under Section 7:900 of the Dutch Civil Code that has been recorded by a notary in a deed. The enforceable copy of that deed constitutes an enforceable title. In case of non-payment, the creditor can immediately have an attachment levied to collect the claim, without first obtaining a court judgment.

Is a private settlement agreement also binding?

Yes, a private settlement agreement is legally binding between the parties. In case of non-payment, however, you must first involve a court to obtain an enforceable title. This usually costs significantly more and can take a very long time.

What does a notarial settlement agreement cost?

Notary fees vary with the complexity of the matter, broadly between € 1,500 and € 3,500 (excluding VAT). In complex cases or where international parties are involved, costs may be higher. Compared with the cost of court proceedings, this is generally a very favorable ratio. The time savings are also substantial, as a full court procedure easily takes between 12 and 24 months.

Can every settlement be recorded in a notarial deed?

In principle yes, but for the deed to carry enforcement power, the claim must be described in the deed with sufficient specificity. The wording around concrete amounts and strict deadlines is essential.

How quickly can I move to enforcement in case of non-payment?

Once the enforceable copy has been served by the bailiff together with a payment order, and after a short period -typically two days- has elapsed, executory attachment can be levied.

What if the other party disputes that it is in default?

Once enforcement has been initiated, the ball is in the other party’s court. And they are starting at a significant disadvantage, because they themselves must bring enforcement opposition proceedings. A well-drafted deed substantially strengthens the position of the party entitled to payment.

Does a Dutch notarial settlement agreement also work in cross-border disputes?

If the party that has to pay is established in the Netherlands or has assets here, then yes. Conversely: a notarial deed executed in the Netherlands can be enforced in a number of other jurisdictions, depending on the applicable EU Regulation or bilateral treaties. This requires a careful analysis.

Can I have a notarial settlement agreement drafted by AI?

In a lawyer’s blog you probably expect a “no” here. And that is indeed my answer, for three reasons:

1) These notarial deeds are not public. Strict confidentiality is in fact standard, so Claude, ChatGPT, and similar tools have no good sources to draw on;

2) The deed must always be reviewed and executed by a notary; and

3) AI does not -for now at least- appear in the courtroom (and neither does the notary, for that matter) and that is precisely where you learn the finesse needed for the very sharp drafting that is so important here.

In closing

The notarial settlement agreement is a powerful instrument in commercial disputes, and one that is used too little in practice. The construction stands or falls with the drafting. Penrose has substantial experience in this area and is glad to assist.