The right of redemption: what is it?

According to the Civil Code (Articles 1659 to 1673), a sale with a right of redemption is a “contract by which the seller reserves the right to recover, within a specified period, the item sold, in return for reimbursing the buyer for the price and certain associated costs”.
In other words, it is a clause in the sale agreement by which the seller reserves the right to “buy back” the property sold.

The seller buying back the property must reimburse the buyer for:

• the price of the property
• the expenses and legitimate costs of the sale
• the cost of repairs: necessary and beneficial expenditure.

Three conditions must be met for the redemption clause to be invoked:

• the right of redemption must be provided for in the sale agreement
• the period may not exceed five years
• the seller must have repaid the sale price and associated costs (the duties are payable) before taking possession of the property

Please note that the Breyne Law expressly prohibits the use of a right of redemption.