How to cancel a real estate contract without penalties in Luxembourg

Rudolphe ABEN

Cancelling a real estate contract may seem complicated, but certain conditions allow it to be done legally and without costs. Here are the main situations where this is possible.
Withdrawal clauses and suspensive conditions
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Withdrawal clause: Some contracts allow buyers to withdraw within 7 to 14 days after signing.
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Suspensive conditions: If a mortgage loan is not obtained or another contractual condition is not met, cancellation may be possible without penalties.
Hidden defects and non-compliance
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Hidden defects: A buyer can request cancellation if major defects are discovered after the purchase.
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Non-compliance: If the property does not meet the contract terms (e.g., a smaller surface area), the buyer can demand termination.
Non-compliance with contractual obligations
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Failure to pay: The buyer may withdraw if they cannot finance their purchase, subject to the contract's clauses.
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Seller’s breach: If the seller fails to fulfill their commitments, the buyer can request contract cancellation.
How to proceed legally?
- Written notification via registered mail to formalize the request.
- Mutual agreement between the parties to avoid litigation.
- Legal action in case of disagreement.
Conclusion
Cancelling a real estate contract without penalties is possible, but it depends on the clauses in place and each party’s obligations. Consulting a legal expert can be a wise decision to avoid disputes.