Get your purchase agreement checked - and avoid costly mistakesThe purchase agreement is the most important document in your property purchase. With Bomae, you get a professional review so you avoid overlooked details and can sign with peace of mind. Our legal experts make sure you are confidently prepared for your home purchase. Learn more about the purchase agreement and the legal aspects below
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What is a purchase agreement?
A købsaftale (purchase agreement) is the legally binding contract between buyer and seller that sets out all the terms and conditions of a property transaction. It forms the basis for the skøde (the deed), which later becomes the official document of ownership of the home.
The purchase agreement contains all the key elements of the transaction, including:
Purchase agreement
Many people think the purchase agreement and the deed are the same thing - but they serve two very different purposes in a property transaction.The purchase agreement is the detailed agreement in which everything about the transaction is established, while the deed is the document that officially registers the change of ownership. Here is the difference in brief:
The purchase agreement
- Is the initial agreement between buyer and seller
- Contains all the detailed terms of the transaction
- Is signed once the parties have agreed on the terms
- Forms the basis for the later transfer
The deed
The skøde (deed) is the document that formally transfers the property to the buyer and ensures that the ownership is officially registered in the Land Registry (Tingbogen).It contains only the most essential information and is prepared only once the purchase agreement has been signed.
- Is the final document that formally transfers ownership
- Contains only the key information about the property and the new owner
- Must undergo tinglysning (land registration) to become valid
- Is typically prepared after the purchase agreement has been signed and approved
When the deed is registered, a registration fee of 1,850 kr. + 0.6% of the purchase price is paid to the state.
Important elements of the purchase agreement
A purchase agreement contains many important elements that have legal and financial consequences for both buyer and seller. Here are some of the most significant:
1. Identification of the parties
- Full name and address of both buyer and seller
- CPR numbers or CVR numbers for companies
2. Description of the property
- Address and cadastral number
- The home's size and plot area
- Type of property (detached house, townhouse, owner-occupied flat, etc.)
3. Financial terms
- Purchase price and how it is paid
- Any down payment or deposit
- Assumption of existing loans
- Escrow of the purchase price
4. Handover
- Handover date
- Transfer of risk from seller to buyer
- Allocation of costs (refusionsopgørelse, the settlement of shared costs)
5. Condition of the home
- Reference to the condition report and electrical installation report
- Description of known faults and defects
- Disclaimers and reservations of liability
6. Conditions and contingencies
- Financing contingency (bank contingency)
- Lawyer's or buyer's advisor's contingency
- Contingency on the sale of your own home
- Deadlines for fulfilling the conditions
Pitfalls in the purchase agreement - how to avoid them
There are many potential pitfalls in a purchase agreement that can cause you problems later. Here are some of the most common:
1. Missing contingencies
Risk: If you sign a purchase agreement without contingencies, you are legally bound to complete the purchase - even if you cannot obtain financing or serious problems with the home are discovered.
Bomae's advice: Always make sure to include both a bank contingency and a lawyer's or buyer's advisor's contingency in the purchase agreement. This gives you the option to withdraw from the transaction if problems arise.
2. Unclear wording about the home's condition
Risk: Vague descriptions of the home's condition can make it difficult to claim defects later.
Bomae's advice: Insist on precise descriptions of the home's condition and any known defects. Have a building surveyor inspect the home before signing the purchase agreement.
3. Overlooking easements and local plans
Risk: Servitutter (easements) can significantly restrict your use of the property, and lokalplaner (local development plans) can have a major impact on the area around your home.
Bomae's advice: Have a legal advisor review all easements and local plans, so you know exactly which restrictions apply to the property.
4. Misunderstandings about included fixtures and fittings
Risk: Ambiguity about what is included in the sale can lead to conflicts at handover.
Bomae's advice: Make sure the purchase agreement contains a precise list of all fixtures and fittings included in the sale - and what is not.
5. Missing deadlines
Risk: Without clear deadlines, the transaction can drag on or contingencies can become invalid.
Bomae's advice: All contingencies and conditions should have clear deadlines for when they must be fulfilled at the latest.
"As first-time buyers, we were grateful for Bomae's thorough review of the purchase agreement. They found several problematic wordings and protected us against potential pitfalls we would never have spotted ourselves." - Mikkel and Simone, first-time buyers in Amager
Right of withdrawal when buying a home
As a buyer, you have a statutory fortrydelsesret (right of withdrawal/cancellation), but it is important to understand the terms:
Buyer's right of withdrawal
- You have 6 working days to withdraw from the purchase after signing the purchase agreement
- The deadline is counted from the day the agreement becomes binding on both parties
- To exercise the right of withdrawal, you must give the seller or their representative written notice before the deadline expires
- You must pay 1% of the purchase price in compensation to the seller
Seller's right of withdrawal
- The seller has no statutory right of withdrawal
- Once the seller has signed the purchase agreement, they are legally bound to complete the transaction
Conditional purchase agreements - your safeguard in the property transaction
A conditional purchase agreement contains contingencies that must be fulfilled before the transaction becomes final. This is your most important safeguard as a buyer.
The most important contingencies in the purchase agreement
This contingency ensures that the transaction only goes through if you can obtain the necessary financing. The wording might be:
"On the buyer's part, the transaction is conditional on financing of the purchase price being obtainable on terms satisfactory to the buyer."
This contingency gives your legal advisor the opportunity to review the purchase agreement and all relevant documents before the transaction becomes binding. The wording might be:
"On the buyer's part, the transaction is conditional on the buyer's lawyer's or buyer's advisor's approval of the transaction in its entirety."
If you first need to sell your current home, this contingency is essential:
"On the buyer's part, the transaction is conditional on the buyer having sold their current home located at [address] no later than [date]."
The importance of correct wording
The contingencies must be worded precisely to provide real protection. Bomae's legal experts make sure your contingencies are correctly worded and give you the protection you need.
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Bomae's legal advice on purchase agreements
As a buyer, it can be difficult to grasp every aspect of a purchase agreement. Bomae's legal experts offer thorough advice so you can feel secure throughout the process.
Our legal review includes:
- Analysis of all terms and conditions
- Identification of potential problems or risks
- Suggestions for improvements or changes
- Condition report and electrical installation report
- Energy label
- BBR statement (Building and Housing Register record)
- Easements and declarations
- Local plans and other public regulations
- Preparation of precise contingencies tailored to your situation
- Setting realistic deadlines
- Safeguarding your interests in conditional transactions
- Negotiation of better terms on your behalf
- Communication with the seller's representative
- Ensuring that your conditions are accepted
- Drafting a precise letter of approval
- Ensuring that all contingencies are correctly addressed
- Confirming that the transaction can be completed on the agreed terms
Legal advice: Our legal advisors ensure you a secure and transparent property transaction. You get:
- Review of the purchase agreement
- Preparation of the letter of approval
- Examination of all the home's documents
- Preparation and registration of the deed
- Calculation of the refusionsopgørelse (settlement of shared costs)
How Bomae handles your purchase agreement
When you choose Bomae to help you with your purchase agreement, we follow a structured process to ensure that every aspect is thoroughly addressed.
1. Initial conversation and advice
We start by understanding your specific situation and the details of your home purchase. This gives us the basis to advise you on the most important elements of the process.
2. Review of the draft purchase agreement
Our legal experts review the draft purchase agreement from the seller's estate agent and identify any problems or opportunities for improvement.
3. Advice on contingencies and conditions
We advise you on which contingencies are relevant to your situation, and how they should be worded to give you optimal protection.
4. Negotiation with the seller
We negotiate on your behalf with the seller or their representative to secure the best possible terms in the purchase agreement.
5. Approval and signing
Once all terms have been negotiated, we go through the final purchase agreement with you, so you are fully informed before you sign.
6. Follow-up on contingencies
We follow up on all contingencies and conditions to ensure that they are fulfilled or waived within the agreed deadlines.
7. Completion of the transaction
We handle all legal aspects of closing the transaction, including preparing the deed, calculating the refusionsopgørelse (settlement of shared costs), and coordinating with banks and other parties involved.
"Bomae has been absolutely indispensable in our home purchase. Their thorough review of the purchase agreement and proactive advice gave us peace of mind throughout the entire process." - Nina and Tim, home buyers in Koege
"Saved us more money than it cost"
Who: Tobias and Camilla Where: Detached house in Dragoer Buyer's advisory service: The full advisory package
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Joel Hyrland
"I am absolutely certain that without Bomae I would neither have gotten my house nor be facing significant financial challenges."
Who: Joel Hyrland Buyer's advisory service: The full advisory package
"Competent and passionate advice from A to Z"
Who: Simone, 26 years old
Where: Home purchase in Amager
Buyer's advisory service: Review and Approval.
Owner-occupied flats
Different types of properties require special considerations in the purchase agreement. Bomae has expertise across all home types.
Owner-occupied flats
When buying an owner-occupied flat, you should pay particular attention to:
- The owners' association's bylaws and house rules
- The size of the shared expenses and their historical development
- Planned maintenance work and its financing
- The owners' association's finances and any shared loans
Detached houses and new-build project sales
When buying a detached house or single-family home, you should pay particular attention to:
- The size of the plot and any building potential
- Easements and other restrictions on use
- Maintenance condition and potential renovation needs
- Zoning status and local plans
New-build project sales
When buying a new-build project sale property, you should pay particular attention to:
- Building guarantees and their scope
- Timeline for completion and consequences of delays
- Options for customisation and changes
- Building permits and other approvals
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