Sale of a rented property. Right of preemption and withdrawal.


Many of our clients come to see us because they wish to sell and, in fact, have a potencial purchaser, but the problem arises when they have a tenant who is renting the property.

The first thing we do is to ask to see the rental contract, in order to establish if it is before or after the reform of the Urban Rental Law in the year 2013. Due to the complexity of this matter, in this article we will only refer to those contracts signed before the mentioned reform.

Art. 14 of the LAU establishes that he who purchases a property registered in the Property Registry office, will only take over the rental contract if this contract is also registered in the Registry office. In other words, if this is not so (as occurs the majority of times) he who purchases the property is not obliged to take over the rental.

However, we must not forget that the tenant has the right of preemption and withdrawal on the rented property:

  • Right of preemption: This can be executed before the sale takes place. The owner must notify his tenant of his intention to sell the property, with all the essential conditions of the operation in order that the tenant, if he wishes, can exercise his right of preemption within thirty calendar days from receiving the notification.
  • Right of withdrawal: This can be executed after the sale, always if the notification previously mentioned has not taken place, or the property has been sold for a lesser price or less onerous remaining conditions, or the requirements demanded have not been complied with.

In any case, it is necessary to carry out a thorough perusal of each case, in order to provide a more complete and tailor made report. If you wish more details concerning this matter, please do not hesitate to contract our expert on Civil Rights in our office who will be more than pleased to help you and answer all of your questions. 


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