Right of First Refusal and Right of Redemption

Right of First Refusal and Right of Redemption

What you need to know if you rent or sell a property in Menorca

In the real estate market, especially in places as unique as Menorca, knowing the rights and obligations that accompany a rental agreement is essential. Two of the most relevant when considering the sale of a rented property are the right of first refusal and the right of redemption.

We explain what they consist of, when they apply, and how they can affect both owners and tenants.

What is the Right of First Refusal?

The right of first refusal allows the tenant to have priority to purchase the property they live in before the owner sells it to someone else.

• Deadline: The tenant has 30 calendar days from receiving the notice of sale to decide whether they want to exercise their right.
• Owner's obligation: They must inform the tenant in writing of their intention to sell, stating the price and terms of the transaction.
• If the tenant does not exercise this right within the established period, the landlord may freely sell to a third party, provided the notified conditions are respected.

In other words, the right of first refusal ensures that the tenant has the first opportunity to purchase their home if they wish to do so.

And the Right of Retraction?

The right of first refusal comes into play after the sale. If the landlord sells the property without respecting the right of first refusal or under different conditions than those notified, the tenant can claim to purchase the property under the same conditions as the buyer.

• When it can be exercised: If the landlord failed to adequately inform the tenant of the sale or if the sale price was lower than the amount communicated.
• Timeframe: The tenant also has 30 calendar days from notification of the sale or from when they become aware of it to exercise this right.

In this way, the right of first refusal acts as an additional guarantee for the tenant against potential breaches.

Waiver of the Right of First Refusal

In some cases, the tenant can voluntarily waive their right of first refusal and redemption, usually through a clause in the rental agreement or through a subsequent agreement with the landlord.

This waiver allows the landlord to sell the property to a third party without first offering it to the tenant, although the tenant retains their right to remain in the property until the end of the lease.

However, the landlord is still required to provide at least 30 days' notice of the sale.

Knowing these rights helps avoid conflicts and surprises for both those who rent and those who decide to sell their home.

At Som Menorca, we accompany our clients throughout the entire sale or rental process, ensuring transparency and legal security at every step.

If you are thinking of selling your rented property or buying the home you currently occupy, our team can help you evaluate your options and manage the procedures easily and securely.

Contact us and we will advise you personally.