Coronavirus: As a buyer, can I withdraw from the sale?
Given the economic effects of COVID-19 that we have seen already, some are predicting a drop in property prices in the coming months. We will have to wait and see the long-term impact, but those already in the process of buying may be looking for answers to this urgent question.
Can I withdraw from the sale?
There is no definitive answer to this and it is necessary to check with what was agreen in the deposit or private contract of sale.
However, if the buyer has been directly economically affected as a result of the crisis, it is likely that they have a legal basis to withdraw from the purchase and to limit the penalty that would otherwise be imposed. Direct economic effects include loss of employment, being furloughed or a reduction of income over 40%.
If no compromise is agreed upon by the main parties, and if the penalty is high, the matter will have to be referred to the courts to be settled. This will likely have to wait until after the state of alarm, when the courts return to normal operations.