Tips & advice

Dissolving condition in a purchase agreement: what does it mean?

21 September 2025 · 3 min read

When you buy or sell a home, you will almost always come across the term dissolving condition (ontbindende voorwaarde) in the purchase agreement (koopovereenkomst). But what exactly does it mean, and why is it so important? We explain.

What is a dissolving condition?

A dissolving condition is a clause in the purchase agreement that gives the buyer or seller the right to cancel the purchase free of charge if a certain condition is not met. The sale therefore only goes ahead if the agreed conditions are fulfilled. If not, the agreement can be dissolved without having to pay a penalty.

Common examples

The most common dissolving conditions are: the financing condition (financieringsvoorbehoud: the buyer can cancel if they cannot secure a mortgage within the deadline, usually 4 to 6 weeks), the building survey (withdrawing if repair costs turn out unexpectedly high), the sale of the buyer's own home, and obtaining a permit, for example for renovation plans.

Deadlines and agreements

The purchase agreement always sets a deadline within which the dissolving condition can be invoked. If the buyer withdraws from the purchase after this date, a penalty may be due, usually 10% of the purchase price. Are you the buyer? Then make sure you dissolve the agreement clearly and in writing before this date, preferably by registered post and by e-mail with a read receipt, and make sure you receive confirmation from the seller that your cancellation has been received and accepted.

Practical tips

For buyers: check how long the condition runs, ask for substantiation after a survey and set clear deadlines. For sellers: make sure the period is reasonable (6 weeks at most), that the amounts relating to the survey are clearly agreed, that there are no vague or overly broad conditions, and that all deadlines and notification moments are set down in black and white. Always have a professional guide you to make sure the conditions are recorded in a legally correct way.

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