Have you heard of the right of first refusal? This is an area of... real estate law which gives certain people priority in buying a property.

Throughout this article from Advogados em Braga you will learn more about the advantages of the right of first refusal and how you can benefit from it. 

What is the right of first refusal?

The right of first refusal is a legal or contractual right that gives certain people priority in the purchase of a property, under the same price and conditions offered by another buyer.

Tenant's right of first refusal: when can it be exercised?

A tenant has a right of first refusal in specific situations:

• When the property you occupy becomes available for sale.
• When it comes to long-term leases and the contract is in effect.
• The landlord is required to notify the tenant, indicating the price and conditions of the sale.

Right of first refusal of co-owners

When there is joint ownership, if one of the owners wants to sell their share of the property, the remaining owners have priority in purchasing it. 

Right of first refusal in rural properties: adjoining lands

Us rustic buildings, In this case, property owners have the right of first refusal. This situation occurs in order to prevent excessive subdivision of land.

Right of first refusal in the RAN

A National Agricultural Reserve (RAN) It also provides for situations of right of first refusal. If land included in the RAN (National Agricultural Reserve) is sold, neighboring landowners may exercise their right of first refusal, and in certain cases the State itself or public entities may intervene to guarantee the right of first refusal. agricultural protection.

Municipalities and public entities: when do they have preferential rights?

Municipal councils, the State, and other public entities have a right of first refusal in strategic areas, namely:

• Properties classified as cultural heritage.
• Properties in urban rehabilitation areas.
• Buildings in areas of public utility.

In these cases, the deed can only be executed after proving that the public entity was notified.

Right of pre-emption of co-heirs

With regard to the right of first refusal of co-heirs, when it comes to a inheritance, If one of the heirs wishes to sell their share to a third party, the remaining heirs have a right of first refusal.

Legal easement of passage: preference of the servient property

When a right-of-way easement exists, the owner of the property has preference in purchasing the dominant property (the one that benefits from the right-of-way), and vice versa. This mechanism serves to simplify and avoid problems in the future. 

How to exercise the right of first refusal (practical step-by-step guide)

In order to exercise the right of first refusal, there are steps you must take, such as:

• Receive formal notification from the owner, including the price and terms of sale.
• Check deadlines (generally 30 days to respond).
• Respond in writing (by registered letter or separate judicial notification) declaring your intention to exercise your right of first refusal.
• Make the payment under the proposed conditions.
• If the owner does not respect the right of first refusal, it may be possible to file a lawsuit to annul the sale.

When does the right of first refusal apply?

It applies whenever the law or contract so determines. Typical cases:

• Sale of leased properties.
• Sale of co-ownership shares.
• Sale of adjacent agricultural land.
• Transmission through inheritance.

How to avoid the right of first refusal?

If you wish to avoid exercising your right of first refusal, please be aware that you can do so, and there are several ways to do this, such as:

• Selling at a price that the preferential buyer is unwilling to pay (but it has to be a real price, otherwise it's fraud).
• Wait until the lease ends, if dealing with tenants.
• Request to waive the right of first refusal.

How to waive the right of first refusal?

As a rule, a legal right of first refusal (e.g., of tenants or heirs) cannot be "eliminated." However, private contracts may not include a right of first refusal clause.

In legal cases, only the legislature or a valid waiver by the preferential buyer can override this right.

Is the right of first refusal mandatory?

Yes, whenever the law stipulates it. The owner is obligated to respect it, otherwise the sale will be null and void.

When does a tenant have the right of first refusal?

A tenant has the right of first refusal whenever the rented property is sold, provided that:

• The lease must be valid.
• The contract should be long-term.
• The tenant resides permanently in the property.

What is the time limit for the right of first refusal?

The standard timeframe is 30 days after notification, but this may vary depending on the type of right.

When does the council exercise its right of first refusal?

The council exercises its right of first refusal in situations such as: 

• Urban rehabilitation areas (ARU).
• Properties that are classified or in the process of being classified.
• Areas with municipal plans that justify intervention.

How do I know if I have a right of first refusal?

To determine if you have a right of first refusal, you should follow these steps:

• Contact the consultant at the Land Registry Office.
• Confirming with the City Council whether the property is in an urban rehabilitation area or a protected heritage site.
• Checking the Lease agreement.
• In the case of inheritances or joint ownership, contact the other co-owners.

How can a lawyer help with issues of right of first refusal?

To have Solicitor This is very important, as it helps with bureaucratic matters related to the right of first refusal.

This professional ensures that deadlines are met, represents those involved in legal matters, or even finds contractual solutions to avoid litigation. 

For more information, contact Lawyers in Braga. With lawyers in Braga, you have access to qualified professionals who can give you all the support you need regarding your right of first refusal. 

Conclusion 

The right of first refusal occurs when someone has priority and benefits from the purchase of a property. For example, a tenant who sees their home being sold and has a long-term lease can exercise this right of first refusal.

To find out if you have a right of first refusal, you should contact the town hall or the land registry. You can also consult the contract.