Eviction is a legal term found in real estate purchase and sale agreements. It refers to a situation in which the buyer may be forcibly deprived of possession or ownership of a property due to claims by a third party who has a stronger legal title to the property. Understanding eviction is important because it can protect both buyers and sellers from financial and legal problems.
Eviction occurs when a third party asserts a right over the property that is recognized by a court, resulting in the buyer being deprived of possession or ownership.
Example:
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You purchase an apartment, but part of it turns out to belong to another person who later asserts their rights through legal proceedings. As a result, the buyer may be forced to transfer the property to the third party.
Eviction serves as a form of legal protection for the buyer, but it also creates obligations for the seller.
Types of Eviction
Full Eviction
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The buyer completely loses the property.
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The buyer has the right to demand repayment of the purchase price and compensation for all expenses related to the purchase.
Partial Eviction
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The buyer loses only part of the property.
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The seller is obliged to compensate the buyer for the lost portion.
Eviction applies when the loss of the property is not caused by the buyer’s fault but by the legal rights of a third party. Typical situations include:
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The property is encumbered with burdens or liens that the buyer was not informed about.
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Claims by heirs of previous owners.
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Illegal transactions or ownership agreements contested by former owners.
Eviction does not apply if the buyer has breached the contract terms or was aware of existing claims.
Rights and Obligations of the Parties
Buyer’s Rights
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Refund of the purchase price paid for the property.
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Claim for compensation of expenses, including notary fees, taxes, and renovation costs.
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Claim for interest in case of delayed compensation.
Seller’s Obligations
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To guarantee clear title to the property.
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To assume responsibility for third-party claims.
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To compensate the buyer in cases of full or partial eviction.
How to Protect Yourself
Buyers Should:
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Conduct a property check in the property register.
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Request a certificate of encumbrances and rights.
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Verify all persons who have rights to the property and whether they have given consent.
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Consult a lawyer if there are any doubts.
Sellers Should:
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Guarantee clear ownership.
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Include a warranty clause against eviction in the contract.
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Provide all necessary documents and certificates to the buyer.
Eviction represents a serious risk in real estate transactions but can be minimized through prior due diligence and the inclusion of appropriate contractual clauses. A notary verifies ownership and encumbrances but cannot guarantee against all future claims. Therefore, it is important for the parties to understand their rights and obligations and to consult a legal professional when in doubt.