More and more people want to withdraw from pre-purchase of newly built condominiums, something like Echo was the first to report on.
The reason is that the purchase has become much more expensive than first thought.
– Some are crying, they wonder how they are going to cope with this, says condominium lawyer Ingrid Uggla, who represents several advance buyers.
Many who signed pre-contracts on newly produced apartments want to withdraw. Both the fees and the interest rates have risen sharply – and some don’t even get a loan promise anymore.
According to condominium lawyer Ingrid Uggla, it is not unusual for fees to rise by more than 100 percent since the advance contract was written.
– They had a loan promise when they signed maybe two years ago. Since then, interest rates have gone up both for the individual and the condominium association, and thus they don’t get a loan, says Ingrid Uggla.
Difficult to cancel contract
Nevertheless, there are many who feel compelled to fulfill the agreement. Going to court to cancel the contract can be lengthy and costly if you do not win the dispute. That’s why many people borrow money from family and friends to complete the home purchase, says real estate lawyer Fredrik Aldmo to Echo.
In the tenant rights act, it is stated that one may withdraw from the agreement in the event of a “substantial increase” in the fee – but there is still no precedent on how large the increase must be to count as such.
This year, a verdict is expected from the Västmanland district court where 12 home buyers want to withdraw from contracts due to fee increases.