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When making a purchase, what are your responsibilities and rights?

When making a purchase, what are your responsibilities and rights?

In Luxembourg, the process of buying and selling property is governed by statute. As a result, from the time an advertisement is posted online until the time a contract is signed before a notary public, each party is both obligated to and endowed with certain rights. If you're the one selling the item, it's important to know what you're responsible for and what safeguards are in place just in case. They'll improve the context in which you can think about this undertaking.

Mandatory Pre-Sale Energy Passport Requirements

An EPC (Energy Performance Certificate) — also known as an energy passport — is Luxembourg's sole mandatory property disclosure document. This document is accurate for the property's primary energy consumption and greenhouse gas emissions for the past 10 years. Each performer is given a letter grade ranging from A+ to F, with A being the highest possible grade and F being the lowest (poorly insulated homes, aging heating systems, humidity, etc.).

The co-most ownership's recent meeting minutes and common area maintenance expense statements are also required in the event of an apartment sale. The prospective buyer must be aware of the full price of the apartment and of any upcoming major renovations.

In addition to the above, you may wish to include in your file: floor plans, recent and significant bills (renovations), and heating energy consumption. They're not required, but they can help close the deal since buyers feel more at ease and informed with complete details.

“Plan drawings, receipts for recently large purchases (renovations), and information on how much energy was used for heating can now all be included in your file”.

Confirmed agreement to sell; a promise

Both you and the buyer commit to selling the property at the price stated in the promise to sell. In Luxembourg, "the promise to sell is equivalent to a sale," with the notarial act serving merely as a formality. This means that it is too late to reverse your decision. If you renounce the sale, the purchaser can sue you to get the process restarted or to collect damages. However, if the buyer discovers a flaw after the promise to sell has been signed that wasn't apparent during the post-signing visits, he has the right to back out of the deal (provided he has a reason clearly justifying his intention).

That's why it's so important to put together a comprehensive and detailed preliminary sales agreement that specifies all relevant terms and conditions, including a clear statement of the sale price and appropriate suspensive clauses to account for any potential delays. This is the kind of complex legal document that should be drafted with the assistance of an attorney.

Rights and responsibilities when selling a home in Luxembourg

Prior to any discussion of a possible sale, the asking price is entirely up to you. Since it can be difficult for an individual who is unfamiliar with the market to position themselves favorably, it is wise to rely on the estimates provided by real estate agencies. Although, there is nothing stopping you from talking with your agent about trying to get closer to the desired amount.

“You can choose whatever price you like”.

Hire a real estate agency to help you out so that you can meet all your responsibilities and protect your rights during the sale of your home.