Default notice of real estate purchase agreement

Before a party to a purchase of real property makes the penalty from the purchase agreement becomes due, a notice of default must be sent. This gives a period of 8 days to still fulfill the purchase agreement. In the sales contract (usually the model NVM purchase agreement) states how to do so. This makes it seem simple, but a mistake is easily made.

No proper formal notice of purchase of real estate

The consequences can be dire, as an incorrect notice of default results in the other party not being in absence comes. As a result, it may be that, for example, the purchase agreement is not dissolved or the penalty is not forfeited. Or even worse: that the other party in turn - but properly - puts you in default. Not the other party, but you yourself then forfeit a substantial penalty. An incorrect notice of default can come back like a boomerang.

Considerations for default residential or commercial property

The formal notice is a very important document. Attention should be paid in cases such as:

• Content: the notice of default purchase agreement real estate must state what the default is and what the consequences are if there is no subsequent performance;
• the method and time of delivery: often the sales contract states how the notice of default should be delivered, for example, by (registered) letter or bailiff's writ;
• the place of delivery: in principle, the residence of the other party, but it may also be that the latter has chosen domicile at the notary's address. In that case, the notice of default can also be sent to the notary;
• the beginning and end of the 8-day period: it starts to run the day after delivery. And the delivery time may vary according to the shipping method chosen.

Fine announcement in notice of default

If the other party does not comply with the notice of default, then the other party can choose whatever he wants. He can give the dissolve the sales contract and claim payment of the contractual penalty of 10% of the purchase price. Alternatively, he can claim that the other party still fulfills the purchase agreement and claim the contractual penalty of 0.03% (three per mille) per day until the purchase agreement is fulfilled. Note that in the Amsterdam model, that penalty continues indefinitely in principle. In the NVM model, that penalty is capped at 10% of the purchase price.

Lawyer formal notice of purchase agreement

Thus, it may be wise to have the notice of default drafted by an attorney so that it meets all the requirements. In addition, the lawyer real estate then anticipate any defenses and refute them in the document. In addition, Lexys advises to have the notice of default delivered by bailiff's writ. The bailiffs Lexys works with are usually able to deliver the document the same day the other party defaulted. Another advantage of a bailiff's writ is that it provides conclusive proof of the day on which the document was delivered.