Once prospective buyers have found their dream home, they try to purchase it as quickly as possible. As so often, the internet is the fastest way here too. Since 2018, prospective buyers have been able to purchase homes online via the now well-known website www.Biddit.be. Unfortunately, this more than once results in hasty buyers changing their minds afterwards. Can they still cancel the purchase in that case?
Legal system?
Biddit is an online platform that, since 2018, has made it possible to publicly sell and buy homes online. The system of “electronic public sales” is enshrined in law so that sales agreements concluded through Biddit are legally valid.
It is a platform developed by the Royal Federation of Belgian Notaries. A sale via Biddit takes place under supervision and with the intervention of a notary. As a result, notary fees are also due when purchasing a home via Biddit.
Every offer is binding
Candidate buyers must log in with an electronic identity card (and card reader) or via the Itsme app. In this way, the notary can check the identity and age of the bidders. Whoever is logged in can then place a bid. Prospective buyers can see which bids are being made, but do not know the identity of the bidders. The seller also does not know the identity of the various bidders.
Any bid made is binding. The notary assigns the real estate to the person who made the highest bid. If, for example, it later appears that no loan can be obtained, this will in principle not constitute a valid reason to waive the (highest) offer. Buyers must therefore be sure before submitting their bid that they can actually pay the amount offered. This is only different if the sales conditions expressly provide for a condition precedent for obtaining a home loan.
Moreover, not only the highest bid is binding. The 4 following bids are also binding for a maximum of 10 working days after the closing of the bids. If for some reason the sale cannot go through with the highest bidder, the purchase agreement is concluded with the next in line.
The premium
The first bidder who makes an offer that is at least equal to the set price and who subsequently actually purchases the property will receive a discount on the purchase price of 1% calculated on his first offer.
The “Hourglass”
There is no point in waiting until the very last second before closing time to outdo the other bidders. If a bid is made in the last 5 minutes, the closing time is automatically extended by 5 minutes. However, during these 5 additional minutes, only bids will be accepted from prospective buyers who had already made a bid before.
The seller decides
After closing the bids, the notary notifies the seller of the amount of the highest bid. Only if the seller accepts the amount, the real estate is also effectively allocated to the highest bidder. Whoever made the highest bid is therefore not yet certain of the purchase.
Dissolution as the only remedy
Waiving the highest offer will generally only be possible subject to payment of the compensation provided for in the sales conditions. This can be a lump sum, a percentage of the bid price or the difference between the bid price and the second highest bid.
Those who wish to purchase a home through pray this It is therefore a good idea to only make a well-considered offer that they can effectively finance. For those who have made the highest offer, there is no (free) way back if it is accepted by the seller.
