When buying a home in Denmark, the law stipulates that the buyer must have a right of withdrawal when buying a home that the buyer will use for habitation. This follows from the Danish Act on Consumer Protection in the Acquisition of Real Estate etc.

It is therefore the buyer and the buyer's circumstances that determine whether the buyer has the right of withdrawal. The right of withdrawal means that you as a home buyer have the opportunity to cancel the purchase and withdraw from the agreement, even if both you and the seller have signed the purchase agreement. Read below for an in-depth explanation of the right of withdrawal when buying a house.

Please note that the right of withdrawal only applies to the buyer and not to the seller!

• House (one-family, two-family, townhouse)
• Apartment (apartment)
• Cooperative housing
• Country estate
• Summer house / holiday home
  
  

If you have a right of withdrawal when buying a home, the real estate agent will ask you to sign a right of withdrawal document together with the purchase agreement. It is also the real estate agent's job to tell you when your right of withdrawal begins and ends.

If you want to exercise your right of withdrawal, you must do so in writing to the seller or the seller's real estate agent before the withdrawal period expires. Read more about the details below.

When you buy a house, you have a 6-day right of withdrawal. Your withdrawal period starts the day after you have been notified that the seller has also signed the purchase agreement.

If you use your right of withdrawal on the house purchase, you must pay compensation to the seller. This compensation must be paid before the end of the 6 business days following the conclusion of the contract.

As the buyer, you must pay a compensation of 1% of the purchase price to the seller. If you as a buyer cancel your house purchase within the 6 business day cooling-off period, the calculation looks like this if you have bought a house for DKK 3 million.

In practice, you pay the compensation to the seller's real estate agent. The real estate agent passes the money on to the seller. This is because the property is not sold if you change your mind, in which case the real estate agent is not entitled to a fee.

1. If we use the advisor reservation in the purchase agreement to cancel the deal
2. If you have agreed to buy a house that the seller has built for sale
3. If the seller's main business is selling real estate and the seller has acted as part of this business
4. If you have bought a plot of land
5. If you have bought a newly built house

If you are unsure whether or not to exercise your cooling-off period, you are welcome to contact Nicolai Vinum for a non-binding review of your transaction.

You can withdraw from a house purchase after the 6 business day cooling-off period has expired. However, this requires that a valid advisor reservation has been inserted in the purchase agreement. If there is a valid advisor reservation in the purchase agreement, it is not finally binding on you as a buyer until your advisor has approved the agreement. You can read more about what a buyer advisor is in our blog post titled: What is a buyer advisor?

Therefore, you should always make sure that an advisor reservation is included in the purchase agreement. You and your advisor will jointly decide whether the purchase can be approved. If your advisor, in consultation with you, cannot approve the purchase agreement, they can use their advisor reservation to “cancel” the deal. This is a free way to cancel your house purchase. In the past, the advisor reservation was called a lawyer's reservation.

Usually, the buyer's advisor has 5-8 days to approve the deal on your behalf. The reservation for your buyer advisor's approval is parallel to the right of withdrawal. If you and your buyer advisor decide not to approve the purchase agreement, no reason is required and it's free!

You can also use your advisor reservation to change the terms of the purchase agreement if there is anything in the purchase agreement that has not been negotiated before signing. The seller's real estate agent often inserts clauses in section 11 of the purchase agreement that regulate the deal. Often these clauses are not reviewed with you as the buyer before signing the agreement.

Your buyer's advisor then has the opportunity to discuss the legal implications with you before the deal is finalized. If the seller can approve any changes to the terms of the purchase agreement, the deal will stand. If the seller cannot approve your buyer advisor's changes, this means that you are free to withdraw from the deal.

It's always a good idea to have a close dialog with your buyer's advisor if you're not completely sure you're buying your dream home. There are several factors that are crucial to whether or not you can use your advisor reservation to cancel your home purchase. Contact us on 9393 0678 or click below.