A practical guide to cancelling a property sale in Luxembourg
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Rudolphe ABEN
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Buying or selling a property can be a complex and stressful process, especially when it comes to the cancellation of the sale. In Luxembourg, there are strict rules regarding the cancellation of a real estate sale and it is important to understand them to avoid any problems or financial damage.
Here is what you need to know about cancelling a real estate sale in Luxembourg.
Conditions for cancellation
Luxembourg law states that the real estate sale can be cancelled if there is a breach of a condition precedent to the sale, such as a warranty or sale condition. If the condition is not met, the sale can be cancelled without penalty.
Cancellation Period
If the sale was made between individuals, the seller may cancel the sale within 7 days of signing the sales contract. However, if the sale is between a business and an individual, the cancellation period is 14 days.
Cancellation Fee
If the sale is cancelled for any reason other than breach of a condition precedent, the seller may be required to pay a cancellation fee. The amount of the fee will depend on the specific terms set forth in the sales contract.
Cancellation procedure
To cancel a sale of real estate in Luxembourg, the seller must inform the buyer in writing of its decision to cancel the sale. It is also important to hire a lawyer to ensure that all legal formalities are respected.
Return of funds
If the sale is cancelled, the seller must return the funds received from the buyer. If the buyer has made a down payment, the seller must return that amount, as well as any interest that has accrued.
In conclusion, cancelling a real estate sale in Luxembourg can be a complex and stressful process, but by understanding the rules and conditions associated with cancellation, you can minimize the risks and financial damages.
It is always recommended to consult a lawyer to help you navigate the cancellation process and ensure that all legal formalities are respected.