The right of first refusal and retraction are preferential acquisition rights that tenants of homes and boundaries have in the case of rural properties. In general terms, said rights allow the owner thereof to acquire an asset with preference over any other person who might be interested in acquiring said asset, and under the same price conditions, form of payment, etc. In this post we are going to analyze what the right of first refusal and retraction is, what is the difference between first refusal and retraction and when it can be exercised.
What is the right of first refusal?
The right of first refusal allows the tenant of a dwelling to have a preferential acquisition right over the dwelling in which he lives, in the event that a purchase offer is made by a third party, and this under the same price conditions or way to pay. In order for the lessee to exercise this right, the owner of the property grants him a period of thirty days from when he receives the buyer’s offer. The right of first refusal is legally regulated in article 25 of the LAU, the Urban Leasing Law.
What is the right of withdrawal?
For its part, the right of withdrawal is the one that protects the tenant of a home from acquiring the property in which he lives when the owner has sold it to a third party. As in the right of first refusal, the lessee also has a period of thirty days from when he is informed of the sale of the property. In order for the tenant to be able to exercise this right, two conditions must be met: that the owner of the property has not informed the tenant of the property of the sale that has been made, or that the sale price that has been stipulated with the third party less than the sale price requested to the tenant. The right of withdrawal is also regulated in article 25 of the LAU.
Both in the case of first refusal and retraction, it is important to note that at the time of signing the lease, a clause may be agreed in which said rights are waived. In a contract, the lessee and landlord can agree on the conditions and clauses they want, so it is completely legal for them to waive the right of first refusal and withdrawal.
On the other hand, when it comes to rural properties, these rights are applied under the same conditions and with the same guarantees. Likewise, the rights of first refusal and withdrawal can also be exercised by the lessee in the event of a judicial auction, as long as the property has been awarded to a third party by judicial auction instead of a sale.
When to use the right of first refusal and withdrawal?
As we have commented, the right of first refusal and withdrawal is held by the lessee from the signing of the contract, unless he has waived such rights. To use them and thus exercise this right of first refusal, you have a period of thirty days from when the owner of the house notifies you. But how are these rights exercised? The lessee must notify the owner within the aforementioned period of his intention to acquire the property for the same price that he has offered to a third party. In the case of the retraction, said communication would have to inform the new owner of the property within a period of thirty days once the lessee knows that the sale has taken place.
For example, if someone lives for rent and the owner of the house notifies the tenant that he wants to sell the apartment for 200,000 euros to a buyer, the tenant has one month to exercise the right of first refusal and carry out the necessary procedures. with your bank to formalize a mortgage.
On the part of the owner of the house, the rights of first refusal and retraction suppose a series of obligations, since if he wishes to sell the house that he owns that is rented, it is obligatory to communicate to the tenant that he intends to sell it and the price for it. you want to do it. This communication will be made, preferably, by certified mail so that the tenant has all the legal guarantees to exercise such rights, since it must not be forgotten that the law of trial and error, the Urban Leasing Law, regulates both rights.
For example, if the owner of a property that has leased it wants to sell it for an amount of 200,000 euros to a possible buyer, before carrying out said sale, the owner has to inform the tenants so that they can exercise, if so they wish, their right to acquire the house for said amount. In the event that the owner does not inform the lessee, he may exercise his right of withdrawal.
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