Can a buyer invoke the COVVI-19 crisis to cancel a sale?

Buy Vincent Cuzon 17 Mar 2020 Updated on 27 Mar 2020 Share on

All economic sectors are impacted by the spread of the coronavirus on French territory.Real estate is not an exception.In this context, can unlimited transactions be canceled?

No, a buyer cannot cancel a sale due to the coronavirus

In the midst of a COVID-19 (or Coronavirus) crisis, Prime Minister Edouard Philippe announced the public closure of all "non-essential" businesses, until further notice.Real estate agencies and notaries therefore no longer welcome customers in their premises.Despite these measures, a buyer who signed a sales compromise cannot cancel a real estate transaction by invoking the health crisis which is currently going through France.However, a buyer can withdraw during the legal period of 10 days available to him.If the sale of accommodation cannot be canceled due to the coronavirus crisis, the signatures of sales compromises or programmed authentic acts are postponed until further notice.

Last minute correction

All sales compromises, signed sales promises, the withdrawal period of which was not completed on March 12, 2020 are affected by ordinance n ° 2020-306 of March 25, 2020.The 10 -day withdrawal period will leave for zero a month after the end of the health crisis.For example, for a file whose deadline was not expired on March 12, the withdrawal period now runs until Friday July 3, 2020.Indeed, the new period of ten days will leave on June 24, 2020 or one month after the envisaged end of emergency measures.

How can the buyer withdraw after the 10-day period?

Coronavirus or not, once the withdrawal period has been elapsed, only the suspensive clauses mentioned in the sales compromise allow the buyer to cancel the real estate transaction.If he needs a mortgage to finance his real estate purchase, the condition precedent of obtaining credit, which must be mentioned in the compromise since 1979, allows him to renounce the operation and to recover his filing ofwarranty if the bank does not grant him a loan under the desired conditions.Apart from obtaining a loan, other optional conditions may be mentioned in the sales compromise: right of pre -emption of a local community, prior sale of its old accommodation, finding of hidden defects, etc..These suspensive conditions allow the buyer to retract without penalty.

In order for the condition suspensive for obtaining credit activates, the buyer must have submitted his loan requests in the month following the compromise signature, and having notified the loan offer within 2 months.

What are the steps to follow to withdraw?

If the buyer wishes to withdraw during the legal period of 10 days, he must send a registered letter with receipt of receipt.This is the date of shipment that is retained to check if the 10 -day period is well respected.If the buyer wishes to play a condition suspensive to cancel the sale once the 10 days of the past withdrawal period, he must justify himself.If his bank does not grant him his mortgage to the conditions mentioned in the contract, he must provide proof of this refusal (certificate of loan refusals) to cancel the transaction.If the buyer retracts during the legal period of 10 days or by playing a suspensive condition, the sums paid must be fully returned to him, without penalty.

If the buyer retracts without valid reason, the compromise may provide a clause generating the cancellation of the sale and compensation of the seller.