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You can do this If the (seller) buyer drops out after the compromise…

Give a reaction / real estate law / By adv. Jan Roodhooft

You have an agreement with a (seller) buyer about the purchase of a house or apartment. However, after the compromise has been signed, the other party renounces the sale. What steps can you take in that case?

The compromise is binding

The starting point in answering this question is that the compromise is binding. Both you and the other party are bound by it. The fact that a notarial deed still has to be executed does not alter this. An exception to that rule exists if the sale is linked to a condition precedent, which is ultimately not fulfilled. Just think of the case where the buyer has it included as a condition precedent that he must obtain a loan and ultimately fails to do so. A second exception exists if the compromise would not be valid for one reason or another. A lawyer can check this for you.

Forced execution or compensation

Once the compromise has been signed, the notarial deed must in principle be executed within four months. If the other party refuses to cooperate and a notice of default does not help, you can go to court. There you can first of all request the dissolution of the purchase with compensation. An alternative is to ask for the forced execution of the purchase, possibly with additional compensation.  You could also request that the court's judgment counts as a 'deed' for the purchase.

If you are a seller, check before you request the forced execution of the purchase whether the buyer is solvent enough to cough up the purchase price. If that is not the case, you are often better off asking for the cancellation of the sale (with compensation) so that you can sell to someone else who does have sufficient financial resources.

Buy-Sell Promise

If you did not sign a compromise, but a buy-sell promise, you are also committed to it. If the option is exercised by one of the parties and the subsequent refusal to have the deed of sale drawn up, compensation can also be requested (or the option price has been acquired). Be aware that in such a case it can be more difficult to also request the forced execution of the sale. A line of thought may exist in having the other party obliged to sign the notarial sales agreement subject to forfeiture of a penalty. best to use the services of a lawyer.

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