If you want to sell your condominium, you may have to pay attention to the right of first refusal. If a right of first refusal has been granted, this can be found in the land register. It means that a specific person or the municipality has the right to intervene in the sale of a plot of land or property and purchase the property.
Whether a right of first refusal exists and to whom it applies can be checked in section II of the land register.
If you are trying to sell your condominium, the right of first refusal may play a decisive role. It therefore makes sense to look into this topic in detail.
Who has the right of first refusal when selling a rented condominium?
It often happens that owners want to sell their apartment and already have a potential buyer. In some cases, the purchase contract has even already been signed. Nevertheless, a further step must be taken so that the sale can actually be completed. The previous owner of the apartment is obliged to present the purchase contract to the person entitled to pre-empt the sale.
Those entitled to pre-emption can generally be assigned to one of the following groups:
- Tenant: If the rented apartment is to be sold, the tenant has a right of first refusal. The tenant can decide to purchase the apartment himself when it is sold. In this way, they can protect themselves from a speculative conversion of the rented apartment. Housing is highly competitive these days and many tenants do not want to give up their beloved home, which is why they decide to buy the property.
- Municipalities: The municipality has a right of first refusal for many plots of land and other properties. If a plot of land is sold, the municipality acquires it in order to be able to continue implementing urban planning.
- Heirs: For heirs, the main reason is often that they want to keep the family’s property. Personal use is also often a reason to make use of the right of first refusal.
What disadvantages arise from the right of first refusal when selling the condominium?
At first glance, the right of first refusal does not create any disadvantages, as the buyer has the opportunity to protect his home and the seller sells his property on the same terms as to any other buyer.
On closer inspection, however, it is noticeable that the right of first refusal causes delays. If the owner wishes to sell their property to a third party, they must first submit the purchase contract to the person with the right of first refusal and wait for their response.
In addition, the buyer has hardly any time to weigh up the purchase of the property. When the purchase contract is presented to them, they have to make a decision for or against the apartment within a short period of time. If the property is sold to a third party, there is a risk that the apartment will be converted and the tenant will have to move out.
The sale of an apartment is associated with certain rights and obligations for both the tenant and the landlord.
Is there a right of first refusal for the sale of rented condominiums in Berlin?
In Berlin, the general rules and regulations on the right of first refusal apply to condominiums and other properties. In addition, special regulations have been introduced in the milieu protection areas. The Senate aims to buy housing in certain areas of Berlin at low prices in order to protect the residents of the districts from displacement and other changes. The applicable law can be found in Section 24 of the Building Code. All the details about the right of first refusal in social conservation areas in Berlin are covered in detail in our magazine article. If you want to sell your condominium in Berlin, you must observe the right of first refusal.
