HOUSE HUNTING LIKE A PRO: CHECK!
January 20, 2016The law states that a private buyer of “residence destined property” has the right to cancel the purchase of the home within 3 days after receiving the purchase agreement. The right to rescind the purchase agreement does not only apply to the purchase of existing property, but also when a residence is being constructed commissioned by the private buyer.
This right to consider only applies to the buyer, not to the seller. Within the time to consider, the buyer has the right to completely rescind the purchase agreement without acknowledging grounds.
Partial cancellation is not possible. If within six months a new agreement takes stand between the same parties, this right does not exist anymore.
The three day period to consider starts the day after receiving the purchase agreement. It cannot end on a Saturday or Sunday. The three day period to consider has to consist of at least two weekdays. Within the time to consider, the purchase agreement can be cancelled in any form. It can be done verbally, but it’s wise to inform the other party in a written form to prevent a possible problem of lack of evidence, also clearly stating the exact time when the purchase agreement was received.
There were a number of reasons for introducing the right to consider. First, the right to consider was introduced to give the buyer the opportunity to address a professional. Naturally, the buyer also has the opportunity to address a professional before agreement is settled, for example to inform himself about constructional state of the residence or certain conditions in the purchase agreement. The right to consider enlarges this opportunity.
Second, time to consider was introduced to prevent buyers from making hasty decisions. Back in the days when homes were selling really easily, it often happened that a buyer regrets his haste decision.
A practical example. Buyer and seller come to an agreement about the purchase of a residence. Buyer and seller both sign the agreement. The agreement, signed by both parties, is sent by the real estate agent to the buyer. The buyer doesn’t show up at the notary for the consignment. When the seller asked the buyer what happened, the buyer states to have never received the purchase agreement and he will use his right to cancel within the period of consideration. The seller could not show evidence of the agreement being handed over, the buyer could still use his right to cancel the agreement. In a judicial procedure between seller and buyer, the real estate agent was condemned of the damage that was done to the seller. The real estate agent was supposed to make sure the buyer would receive the agreement, for example by letting him send an acknowledgement of receipt.
Regarding time to consider, it is advised to be up to date about the rules before purchasing a residence. For example; it would be undesirable to have bought a home at an auction with a notary, when finding out afterwards the right to consider does not apply to auctions!
By: Ilse van Ast, Attorney at Law.
