The law gives the buyer a right of withdrawal when buying a home. It follows from the Danish Act on Consumer Protection in the Acquisition of Real Estate etc. Below we explain the rules. Feel free to reach out if you have any questions.
When do you have the right to withdraw from the deal?
When you buy a home in Denmark that you will use for habitation, the law gives you a right of withdrawal. It is therefore the buyer and the buyer’s circumstances that determine whether the right applies.
The right of withdrawal means that you can cancel the purchase and withdraw from the agreement, even if both you and the seller have signed the purchase agreement. The right of withdrawal only applies to the buyer, not to the seller.
The types of property covered by the right of withdrawal
- House (one-family, two-family, townhouse)
- Apartment
- Cooperative housing
- Country estate
- Summer house / holiday home
If you have a right of withdrawal, the real estate agent will ask you to sign a right of withdrawal document together with the purchase agreement. It is also the agent’s job to tell you when your right of withdrawal begins and ends.
If you want to use 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.
How long does the right of withdrawal last?
You have a right of withdrawal of 6 business days. The period starts the day after you have been notified that the seller has also signed the purchase agreement.
Saturdays, Sundays and public holidays do not count. Christmas Eve and New Year’s Eve are not public holidays, so they count as business days (unless they fall on a weekend).
| Day | What happens |
|---|---|
| Monday | You are notified that the seller has signed the purchase agreement. |
| Tuesday | The withdrawal period starts the day after you were notified. Business day 1. |
| Wednesday | Business day 2. |
| Thursday | Business day 3. |
| Friday | Business day 4. |
| Saturday and Sunday | Do not count. |
| Monday | Business day 5. |
| Tuesday | Business day 6. The right of withdrawal expires at 23:59. |
What does it cost to cancel a home purchase?
If you use your right of withdrawal, you must pay compensation to the seller. It must be paid before the withdrawal period ends. The compensation is 1% of the purchase price. For a home bought for DKK 3,000,000, it looks like this:
Compensation to the seller = 1% × 3,000,000 = DKK 30,000
In practice, you pay the compensation to the seller’s real estate agent, who passes it on to the seller.
You do not pay compensation to the seller in these situations
- If we use the advisor reservation in the purchase agreement to cancel the deal.
- If you have agreed to buy a house that the seller has built for sale.
- If the seller’s main business is selling real estate and the seller has acted as part of this business.
- If you have bought a plot of land.
- If you have bought a newly built house.
If you are unsure whether to use your right of withdrawal, feel free to contact Nicolai Vinum for a non-binding review of your transaction.
Can you cancel a home purchase after the 6 days?
Yes, if a valid advisor reservation (rådgiverforbehold) has been written into the purchase agreement. The purchase is then not final for you as a buyer until your advisor has approved the agreement. In the past, the advisor reservation was called a lawyer’s reservation. You can read more in how we work as your buyer’s advisor.
You and your advisor decide together whether the purchase can be approved. If your advisor, in consultation with you, cannot approve the purchase agreement, they can use the advisor reservation to cancel the deal. No reason is required, and it is free. Usually, the buyer’s advisor has 5–8 days to approve the deal on your behalf. The advisor reservation runs alongside the right of withdrawal.
You can also use the advisor reservation to change the terms of the purchase agreement if something in it 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, and these are often not reviewed with you before you sign. If the seller approves the changes, the deal stands. If the seller does not, you are free to withdraw.
It is always a good idea to talk to your buyer’s advisor if you are not completely sure you are buying your dream home. Call us on 9393 0678.
