Buying real estate is one of the most important decisions in anyone’s life. It’s no surprise that sometimes circumstances change, and you may need to cancel the deal. What happens then? What are your rights, and how can you protect yourself from financial or legal losses?
In this article, we’ll cover the key aspects of canceling a property purchase – when it’s possible, what the consequences are, and why legal support is essential.
What is a preliminary property purchase agreement and why is it so important?
Before the final deal and signing of the notarial deed, a preliminary contract is almost always signed between the buyer and the seller. This important document sets out the main terms of the transaction, such as the purchase price, transfer deadlines, payment methods, and what happens in case of cancellation – penalties, deposit refunds, and more.
Many people underestimate the preliminary contract, but it has legal force. If you later decide to cancel the purchase, you might be required to pay penalties or even lose your deposit. That’s why it’s highly recommended to consult a lawyer or legal expert before signing it.
When and how can you cancel a property purchase?
Yes, you have the right to cancel a property purchase. However, this depends on the stage of the transaction and the terms of the preliminary contract. Here are a few common scenarios:
Before signing the notarial deed:
At this stage, when the deal is not yet finalized before a notary, you technically have the option to cancel the purchase. However, there is one catch — if you don’t have a valid reason for canceling, you will most likely lose the deposit you paid when signing the preliminary contract.
With a valid reason for cancellation:
You have strong grounds to cancel and request your money back if:
- The property has hidden defects that you were not informed about.
- The seller fails to fulfill their contractual obligations (for example: they didn’t provide the necessary documents, are delaying actions, or the property has liens).
- The terms of the deal were unilaterally changed without your consent.
In these cases, your cancellation is fully justified. You have the right to cancel the deal and get your deposit back—or the full amount if you have paid more.
What happens to the deposit when you cancel a property deal?
The deposit is usually 10% of the agreed price and is paid when signing the preliminary contract. It serves as a guarantee of your serious intention to buy the property.
- If you cancel the deal without the seller’s fault, the deposit stays with the seller.
- If the seller is responsible for the deal falling through, you have the right to receive double the deposit amount (according to the Obligations and Contracts Act).
Canceling a property purchase is not an easy decision. However, sometimes it is completely justified—especially if the deal involves risks. Knowing the law, paying close attention to documents, and getting help from a good lawyer or legal expert is the best way to avoid losses. Don’t wait for problems to arise before seeking help—prevention is the best protection.
Contact us today for professional consultation and to protect your rights when buying a property. The Expertissimo team is here to assist you at every stage of the deal.
06/08/2025
