Pre-emption Right When Selling Real Estate

An owner who intends to sell must notify the right holder in writing of the intended sale and its terms (above all the price) and offer them the chance to buy on the same terms as agreed or intended with a third party (Arts. 536 and 542 para. 3 of the Law on Obligations, Art. 132 of the Law on Property Relations). Send the offer in a way that proves receipt, for example by registered mail.

A co-owner has 10 days from delivery of the written offer (Art. 132 of the Law on Property Relations). A contractual right holder must notify the seller in a reliable way of the decision to use the right within one month of being told of the intended sale (Art. 537 of the Law on Obligations). The state or municipality has at least 60 days for cultural property (Art. 46 para. 2 of the Law on Protection of Cultural Property). The municipality responds within 30 days of the owner's request for a superstructure (Art. 177 of the Law on Property Relations).

If the right holder accepts the offer, then together with the statement that it is buying it must pay the price agreed with the third party or deposit it with the court. It can use the payment term from the contract with the third party only if it gives sufficient security (Art. 537 of the Law on Obligations). If it waives the right or does not respond in time, the owner may sell to another person (Art. 132 of the Law on Property Relations). For cultural property, the terms may not be more favourable than those offered to the state or municipality (Art. 46 para. 3). The sale contract is concluded in writing and certified (see the Purchase of Real Estate procedure). Notary tariff and real estate transfer tax are paid as in any sale.

Persons with a statutory pre-emption right who were not notified in writing can demand annulment of the sale (Art. 542 para. 3 of the Law on Obligations). If the property was sold and ownership transferred to a third party without notifying the holder of a contractual right, and the third party knew or could not have failed to know the right existed, the holder can within six months of learning of it seek annulment of the transfer and transfer of the property to them on the same terms. The right ends in any case five years after the transfer of ownership to the third party (Art. 541 of the Law on Obligations).