The right of pre-emption: what is it?

According to notaire.be “A right of first refusal is a statutory or contractual right granted to certain private individuals (tenant, farmer, co-owner, etc.) or public bodies, allowing them to acquire a property in preference to any other person when the owner expresses an intention to sell it.”

In simple terms, a right of first refusal gives a third party priority when purchasing a property. 

Who can be granted this right? 

Between private individuals

A tenant may ask their landlord for a right of first refusal on the apartment they occupy. This right may be specified in the tenancy agreement or in an appendix. It therefore allows the tenant to match the best offer received by the owner. The tenant then has a predetermined period in which to decide whether or not to exercise their right of first refusal.

A right of first refusal between private individuals may also exist in other situations. For example, if you are interested in your neighbour's property in order to extend your own, you can negotiate a right of first refusal with them to ensure that you are the first to know if it is put up for sale!

Exercised by public authorities

There are certain designated areas in which public authorities have a right of first refusal when a property within the relevant area is sold.

Various public authorities may exercise this right, including the Region itself, municipalities, the CPAS, transport companies, etc.

The principle is to allow public authorities to have control over sales. The aim is to carry out projects in the public interest, such as installing community facilities or developing social housing.

The area within which public authorities may exercise this right is defined by decree. It is designated for a period of seven years and may be renewed in five-year increments.

In principle, the Notary must notify the Land Authority of the sale of a property subject to a right of first refusal. The public authorities then have two months to state whether or not they intend to exercise their right.

 

Source :notaire.be