An agreement of an apartment purchaser who refuses to sign a “handover form” shall not be terminated if full consideration was paid

November 6, 2019

A contractor demanded to terminate a contract with an apartment purchaser after such refused to sign a “handover form” during a handover of the apartment.
The Court dismissed the claim and held that there are no grounds for termination of the contract with the purchaser. The obligation to handover possession of the apartment is the seller’s primary duty towards the purchaser. On the other hand, the purchaser’s major obligation is to pay the full consideration for the apartment while its obligation to receive possession of the apartment is marginal. A purchaser’s refusal to take possession, after having paid the full consideration, cannot establish grounds for termination by the contractor because this is a far-reaching relief. Here there were disagreements over deficiencies discovered in the apartment during the handover and for which the purchaser refused to sign a “handover form”. At most, the contractor is entitled to file a claim in case it suffered any damage due to such refusal of the purchaser. In any case, here, the purchaser received a key, transferred his belongings to the apartment and even paid the full consideration, so the purchaser did not refuse to accept possession at all even if formally was unwilling to sign a “handover form”.