You have just signed for your dream home. A huge decision, and then the doubts may start to creep in. Perhaps you spot something in the reports, or your gut says stop. There are two legal ways to get out of the agreement. With one, you pay the seller nothing; with the other, you pay 1 % of the purchase price.
First comes the lawyer’s reservation (advokatforbehold). It must be written directly into the purchase agreement. The purchase is conditional on your lawyer’s approval, and any objections must be raised within a short deadline, typically six working days after signing. If you get cold feet, you can say no thanks before the deadline. No payment to the seller.
The right of withdrawal (fortrydelsesret) is the second option and follows from the consumer rules on buying a home. You have six working days to change your mind. You pay 1 % of the purchase price to the seller, and then you are out of the deal.
Pay attention to the details. The two rules each have their own deadline and different financial consequences. Always sign with a lawyer’s reservation. It is your first safety net. Use the right of withdrawal as a last resort if something comes up afterwards. In the rest of the article, you get precise advice on how and when to use them, so you are in a strong position all the way.
The lawyer’s reservation explained, recommended wording and why “in its entirety” matters
A lawyer’s reservation in your purchase agreement protects you as the buyer. The purchase is conditional on your lawyer being able to approve it in its entirety, and any objections must be raised within a fixed deadline, under the standard terms typically 6 working days after signing. If your lawyer objects before the deadline, you can withdraw from the purchase without paying compensation. If no objection is made in time, the purchase is binding on you.
Use this wording in the purchase agreement:
“The buyer’s signature is conditional on the buyer’s lawyer approving the purchase agreement in its entirety. Any objections must have reached the seller’s estate agent in writing no later than 16:00 on [dato]. Otherwise, the sale is binding on the buyer.”
The phrase “in its entirety” is important, because it means the lawyer does not only look at the legal side of the contract. The whole purchase is assessed, including the practical and financial aspects of the home: the financing, the owners’ association’s finances, easements and the terms of the handover. Everything is included in the assessment, so you get a broad safety net, not just protection of individual clauses.
The deadline for your lawyer’s reservation is the one stated in your purchase agreement. Under the standard terms, the deadline is typically six working days after both parties have signed, and the day of signing does not count. This gives you and your adviser time to go through the agreement thoroughly.
Deadlines and what your adviser typically has time to review during the reservation period
Keep an eye on the deadline in your lawyer’s reservation. It counts working days only and usually ends at 16:00 on the last day. If the deadline passes without your lawyer having raised an objection, the sale is binding, and it is then too late to change your mind without consequences.
During this period, your adviser goes through the most important documents for you. The condition report, the electrical installation report and the energy label are read carefully, and any remarks are assessed so you know what you are buying. The land register (tingbogen) is checked for easements and encumbrances that could affect you financially or legally. Environmental and planning matters are assessed too, including local plans, zoning status and BBR information (from the Danish building register), where unlawful conditions can come to light.
If you are buying an owner-occupied flat or cooperative housing (andelsbolig), the association’s documents get extra attention. The articles of association and the minutes of the latest general meetings give an overview of decisions and projects that could affect running costs and finances. Budgets and accounts are gone through with a fine-tooth comb, especially liquidity, maintenance plans and debt per housing unit, so you can see whether the finances are sound.
Your financing also has to fall into place at the same time. The bank’s loan offer, the down payment, any special terms, the handover date and any movable items included in the sale are agreed. If problems arise, your lawyer must raise a written objection with the seller or the seller’s estate agent before the deadline. If that does not happen, the sale becomes binding on you.
The right of withdrawal when buying a home: 6 working days and 1 per cent in compensation
The right of withdrawal when buying a home is set out in the Danish act on consumer protection in the acquisition of real property. It protects you, so that you are not stuck with a purchase you regret afterwards. It applies when the home is mainly intended as your own residence, and it gives you six working days to pull out after the seller has signed and accepted the agreement.
The deadline runs from the time the agreement is concluded. If you have accepted an offer of sale from the seller, it runs from the time you became aware of the offer. If you want to use the right, your written notice must have reached the seller before the deadline expires. At the same time, you must pay 1 % of the purchase price in compensation. If the house costs three million kr., you pay 30.000 kr. if you withdraw using this statutory right.
That is an expensive solution compared with a lawyer’s reservation, which lets you get out of the sale without paying anything extra if the lawyer objects before the deadline. That is why the lawyer’s reservation often acts as the first safety net. The right of withdrawal is more of a last resort, with a bill attached.
There are exceptions. The right of withdrawal does not apply to purchases at auction, purchases of agricultural property subject to the obligation to farm it (landbrugspligt), or purchases covered by the timeshare rules. You do not have to pay the 1 % compensation if the seller built the home with a view to selling it, or if the seller’s main business is selling real property and the sale is part of that business. Check the rules in the legislation or on official public websites before you count on being able to cancel a purchase on those terms.
How to use the lawyer’s reservation and the right of withdrawal in practice
Start with a lawyer’s reservation when you sign a purchase agreement. It is your safety net. Your adviser has time to read everything through calmly within the deadline. If the lawyer finds problems, such as hidden easements or financial risks in the owners’ association, the seller must be notified in writing before the deadline expires. The sale can then be cancelled at no extra cost, and you avoid paying 1 % in compensation.
If the deadline has passed, or new issues come to light afterwards, all you have left is the statutory right of withdrawal, provided its six working days have not run out. Under the standard terms, the two deadlines run at the same time, so act quickly. Send the seller a written notice – an email is usually enough – and pay 1 % of the purchase price within six working days of the date the purchase was accepted. Keep the receipt for the payment. Documentation can prove decisive.
Do not skip the lawyer’s reservation. Without it, the right of withdrawal is your only way out, and it costs you 1 % of the purchase price, even if you have a good reason to pull out. The financial risk is far greater without this protection.
This article provides general information on how you can legally withdraw from a purchase agreement when buying a home. Rules and deadlines depend on the type of sale and your situation, so contact your own adviser as soon as possible if you are in any doubt about deadlines or procedures. Time is of the essence here.
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