Buying property in Luxembourg


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Initial agreement between the seller and the buyer - Before Contract

What form can this agreement take? Preliminary contract?

Very frequently, in practice, the parties sign an act by private agreement known as a sale agreement before signing the authentic sales act at the notary’s office. Nonetheless, without the intervention of the notary, this act cannot be used against the rights of third parties. The authentic act is therefore indispensable for every real estate transaction. It is advisable to see a notary at the beginning of the negotiations relating to the sale of an estate property. The notary will give advice on all the implications and necessities, both legal and practical, which should be considered.

With whom must the parties (buyer/seller) formalise the initial agreement? Is a legal form imposed?

The parties are obliged to go to see a notary who will draw up an authentic act of sale required by law. Without the authentic act, the sale of the property would not be enforceable against third parties.

What are the legal effects of this preliminary contract? Is a preliminary contract necessary?

The preliminary contract is valid between the contractual parties. Nonetheless, only the authentic sales act drawn up by a notary makes the acquisition enforceable against third parties.

Are there amounts to be paid, and to whom? Can these amounts be repaid?

The parties are free to come to an agreement about an upfront payment before the signature of the authentic sales act in front of the notary, but there is no legal requirement to do so. The same applies to clauses regarding the restitution of transferred funds in the case of cancellation. The same applies to the penalty clauses and the deposit in the case of a VEFA (sale of a property under construction) agreement.

Are there any consumer protection measures (cooling-off period, right of withdrawal)?

No. Please note that, regarding the authentic sales act, the parties to the contract shall be informed by the notary of all the legal consequences deriving from the real estate transaction.


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Chambre des Notaires du Grand-Duché de Luxembourg

53, boulevard Joseph II,

L – 1840 Luxembourg, Luxembourg

Tel.: +352 - 44 70 21

Fax: +352 - 45 51 40

chambre des notaires online lu

Information for non-EU European countries is available at the following link.