Neighbors turn out to be tenants and not buyers: grounds for rescission of purchase agreement?

Neighbors turn out to be tenants and not buyers: grounds for rescission of purchase agreement?

The buyer of a luxury penthouse in Capelle in den IJssel is angry with the developer of the project. In the brochure namely, it stated that he would buy an apartment in a building with exclusively owner-occupied apartments. However, the developer (Van Wijnen) sold 65 of the 90 apartments in the complex to an investor, who will rent them out. Not the deal, the buyer thought. Therefore, he rescinded the purchase agreement. The buyer and Van Wijnen are fighting it out at the Rotterdam court. Real estate law attorney Robert van Ewijk discusses the verdict.

The project: owner-occupied building and rental building

The dispute concerned the Blinq project in Capelle aan den IJssel. In that project, Van Wijnen is developing four buildings. Two buildings with exclusively rental apartments and two buildings, De Hoge and De Lage, with 90 owner-occupied apartments. These are being built by a construction company affiliated with Van Wijnen. The plaintiff in this case purchased a penthouse in the De Hoge building from Van Wijnen and entered into a building contract with the contractor for it. This involved a total amount of €1,100,000. The brochure and contract documents state that the apartment is in a building with exclusively owner-occupied apartments. The buyer therefore feels that Van Wijnen has failed to fulfill the purchase agreement and has not delivered what it was entitled to expect, since a substantial portion of the apartments have been sold to an investor.

Developer's defense: no guarantee about tenants or buyers

Van Wijnen first argues that the brochure no rights can be derived. While the court agrees with the developer on this point, it also explains that a brochure does create certain expectations in the buyer. These expectations play a role in the decision whether or not to conclude a contract. purchase agreement proceed. Van Wijnen further states that the apartments sold to the investor are, strictly speaking, still owner-occupied apartments: after all, they have been sold and not rented out. However, the court makes short work of that. Since the investor will rent out the 65 apartments, they can no longer be considered owner-occupied apartments.

Tenants or buyers as neighbors makes a difference

The court further let slip that it makes a difference whether you have tenants or buyers as neighbors. From various surveys conducted by the buyer during the procedure put forward, in fact, it appears that turnover among tenants is higher than turnover among buyers. Especially in the segment in which the homes in project Blinq are located. Therefore, there is much less social cohesion than the buyer of the penthouse was entitled to expect under the purchase agreement.

Developer defaulted on purchase agreement

Therefore, the court finds that the developer has defaulted on the purchase agreement. There is, so to speak non-conformity. The court dismisses the claim to dissolution of the sales contract therefore granted. The interesting thing about this is that the judgment shows that the penthouse had already been delivered to the buyer. The court thereby confirms that dissolution of the purchase agreement is possible even after delivery is. As a result, the penthouse must be transferred back to Van Wijnen, the purchase price must be repaid and the damage suffered by the buyer must be compensated. However, the court has not yet ruled on this issue in this judgment; it is possible that this will follow in later proceedings, should the buyer and Van Wijnen not be able to reach an agreement together.

Lawyer in dispute over purchase or sale of property

Lexys' real estate lawyers have years of experience advising and litigating on disputes related to the purchase and sale of real estate. In doing so, they act for sellers, developers and contractors as well as for buyers of residential or commercial property. Would you like to know what Lexys' real estate law specialist can do for you? Then please contact with us.