Aug. 27, 2023
Suppose you buy a home and after delivery everything turns out to be wrong. You come across all kinds of hidden defects against and the property is not what you expected. Can you see the purchase agreement then dissolve? Lawyer real estate law Robert van Ewijk Explains the (im)possibilities.
Most deeds of delivery of residential and commercial property contain the provision that conditions precedent from the purchase agreement can no longer be invoked. Such resolutive conditions are often included in case the buyer is unable to obtain financing (the financing reservation) or a reservation in case immediately necessary maintenance turns out to be more expensive than expected. In practice, it is considered undesirable that a resolutive condition can still be invoked after delivery. Therefore, most delivery deeds stipulate that this is no longer possible. However, this does not mean that dissolution as such is completely excluded.
Indeed, the provision in question relates only to the resolutive terms, and not so much on the cancellation of the agreement for breach of contract. This - unless this too is excluded - - is usually still possible. The prerequisite is that there is a shortcoming in the fulfillment of the purchase agreement and the seller must be in absence are. Therefore, often the seller must still be given the chance to still fulfill the purchase agreement, and thus to remedy the hidden defects.
The consequence of rescission is that the buyer must deliver the home (or commercial property) back to the seller. The seller is obliged to repay the purchase price. Furthermore, dissolution leads to the fact that the damages of the one who dissolved must be compensated by the other party. Note: only the claim for dissolution does not help you as a buyer. It is important to claim an order to return the property. In this blog read how.
Dissolution has far-reaching consequences and is especially appropriate in a situation where the buyer no longer wants ownership of the property. Therefore, a more frequently used (and sometimes more appropriate) alternative is the demand compliance and/or compensation. If performance is claimed, the seller is given the opportunity to remedy the defects. Such a claim can be combined with a claim for damages. Also - if the seller is unwilling or unable to repair - only damages can be claimed. The damages can then consist (among other things) of the repair costs incurred or to be incurred.
Another alternative is the plea of error. The purchase agreement can then be annulled in whole or in part. In addition to setting aside the purchase agreement (which, like rescission, means that the item purchased must be returned to the seller), the court can be asked to alter the consequences of the agreement so that the buyer's disadvantage is removed. Specifically, this may involve reducing the purchase price and allowing the buyer to remedy defects from the difference in the purchase price.
That dissolution after delivery is possible under circumstances is shown by a judgment of the North Holland District Court from the summer of 2025 (after the first version of this blog appeared). That statement is discussed here.
Which route is best depends on many factors. Sometimes a claim for performance or an appeal for rescission for hidden defects is not possible. For example, if there is a age clause. If so, it may be more obvious to invoke a mistake. However, the consequences of an appeal for dissolution and an appeal for error can differ considerably. For example, damages cannot always be claimed in the case of error. For advice in the case of hidden defects or about dissolution of the purchase agreement you've come to the right place at Lexys Lawyers.