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Real estate law

Can this preliminary contract be cancelled?

Unless both parties decide together to cancel the contract, it is irrevocable except for certain causes recognized under the law. You are generally bound by the preliminary contract. The other party may oblige you, through judicial procedures, to execute the obligations you have undertaken. According to the circumstances, the court may force you to execute the deed or may simply award damages; it may sometimes do both. Each party has legal recourse to force the other to follow up on the agreement. The injured party may also sue for damages.

Unless, of course, you change your mind within three days, or even 10? Not true! If the preliminary contract does not provide for a grace period, or at least provide for “earnest money,” your agreement is, in principle, irrevocable.

For a new house, the law does provide for a 10-day period of grace in favour of a promisor who is a natural person, subject to the payment of certain costs, if the vendor is the builder or promoter and the property is a new residential immovable acquired for occupation by the promisor.