When you buy a home, a right of withdrawal automatically comes with the purchase. The right of withdrawal is set out in law, which means that neither you nor the seller can contract out of it, for example through a reservation in the purchase agreement. But how long does the right of withdrawal last? How do you withdraw from your new home purchase in practice? And do you have to pay the seller compensation if you pull out? Read more about the terms for the right of withdrawal when buying a house below.
How long does the right of withdrawal last? The right of withdrawal lasts 6 working days and applies only to the buyer. Saturdays, Sundays and public holidays are not counted in the deadline. That means you always have at least one weekend to think over your purchase.
If the seller signs the purchase agreement a few days after you, the countdown to the 6-day deadline only begins on the day the seller signs. If the seller signs the purchase agreement first, the countdown begins from the day you, as the buyer, receive the signed purchase agreement.
What does it cost to withdraw from your home purchase?
If the seller has not yet signed the purchase agreement, you can withdraw from your purchase free of charge. This requires you to give the seller written notice that you have withdrawn from the purchase, and that this happens within the 6-day deadline.
If, on the other hand, you have both signed the purchase agreement, things work a little differently. You still need to notify the seller that you have withdrawn from the purchase, and you still need to do so before the 6-day deadline expires.
But because you have entered into a binding agreement with the seller, you are obliged to pay them compensation of 1% of the purchase price. So if, for example, you have bought a house for 3 million kr., that means you must pay the seller compensation of 30,000 kr. To help you avoid having to withdraw from your home purchase in the first place, Bomae offers legal advice when buying a home.
Further down in the article, however, you can read more about advisor reservations (rådgiverforbehold) and how you can withdraw from a deal without having to pay compensation.
What if I have already registered the deed?
If you have already completed tinglysning (land registration) of the deed on your new home, this will not affect the right of withdrawal itself. However, you must make sure to cancel the registration within 6 days. If it is the seller who registered the deed on your behalf, you must get them to cancel the registration before the 6-day deadline expires.
What if I have already moved into the new home?
If you have already moved in, you must move out of the home so the seller can move back in before the deadline expires. The home must be in the same condition as when the seller handed it over to you.
This also means that if you have had tradespeople in, it is your responsibility to ensure the home is returned in the same condition as when you took it over. If you have changed the home so much that it cannot be returned in the same condition, you cannot make use of the right of withdrawal.
Can I avoid paying compensation?
You can avoid paying compensation to the seller if you have a lawyer's reservation or advisor's reservation (advokatforbehold/rådgivningsforbehold). With such a reservation, you can withdraw from the deal and avoid paying compensation if the property lawyer or legal advisor does not approve the purchase agreement in its entirety.
In other words, the advisor has the final say, even after you and the seller have signed the purchase agreement. You must make sure the lawyer's reservation or advisor's reservation is written into the purchase agreement yourself.
Still in doubt? Contact your buyer's advisor to get clarity on your questions.
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