The misconception of tenants' right of first refusal
In recent weeks, an article circulated in the media claiming that tenants don't always have a right of first refusal when an apartment is sold. The wording suggests that tenants usually do have a right of first refusal, but only in exceptional cases. This implies that, in the event of a sale by the owner, they would essentially have to be asked for their permission, and only if they grant it could the landlord sell the property to someone other than themselves.
Only in one single case is there a right of first refusal
Quite the opposite is true! The legislator grants a tenant a right of first refusal in only one single case.
Specifically, this applies when, during an ongoing tenancy, apartments in a building (i.e., a "rental building") are converted into condominiums and these units are sold for the first time. The tenant does not have this right of first refusal permanently, but must exercise it within 14 days of receiving notification from the notary. In some cases, there is no right of first refusal at all . If the condominium is rented or the entire building is being sold, the tenant has no right of first refusal whatsoever. This also applies if the apartment is being sold by a family member of the landlord or to a member of their household. It would therefore be more accurate to say that the tenant only has a right of first refusal in exceptional circumstances. Incidentally, overlooking or ignoring the right of first refusal in the aforementioned situation can be costly, as the overlooked tenant could successfully claim damages.
Source: By business lawyer and BVFI managing director Helge Norbert Ziegler
About the author
Harry Mohr
Real estate agent (Chamber of Industry and Commerce)Harry Mohr, author of this article
