The right of first refusal or preferential acquisition, according to Law 29/1994 of November 24 on Urban Leases, is the right that a tenant has to acquire the property with preference in the event that the landlord puts said property up for sale. This is established in Article 25 of this regulation, which indicates that the tenant shall have the same conditions that the landlord has agreed upon with a potential buyer.
In this sense, with the right of first refusal, the tenant has 30 calendar days to exercise the right of pre-emption from the moment the owner notifies them of the decision to sell. Through this, an agreement can be determined and reached regarding the price and the rest of the conditions inherent to the transfer of real estate property. Similarly, the tenant also has the right of redemption concerning the price and all conditions of the purchase and sale.
Aspects to take into account regarding the right of first refusal
It should be noted that to register the deeds of sale for rented properties in the Land Registry, it is necessary to provide proof that the relevant notifications have been made. It is also important to emphasize that if the property in question is not rented, the seller must declare this in the deed in order for it to be registered as an acquisition.
Regarding a furnished real estate property, if the sale also includes furniture, appliances, or other household items, the right of first refusal will also apply to all of them. That is, the tenant cannot exercise this right solely on the dwelling. On the other hand, if the tenant has no interest in acquiring the property, both parties may agree on a waiver of the right of preferential acquisition.
Therefore, if an agreement is reached, the owner must communicate to the tenant the intention to sell the dwelling at least thirty days prior to the date of formalization of the purchase agreement.