REALWorld Law

Sale and purchase

Mandatory pre-emption rights

Do mandatory pre-emption rights apply to the sale of real estate assets in this country?



Tenants who duly fulfil their obligations under their lease agreement, enjoy a pre-emptive right to purchase the property they occupy subject to payment of the sale price. If the real estate is then sold by auction the tenant's offer, if it equals the best offer made by the bidders at the auction, prevails.

Co-owners of property have a right of pre-emption if one of the owners is to sell his share. A co-owner who intends to buy property in this way must pay the purchase price set by the seller, who must inform the other co-owners of the sale. This right of pre-emption must be exercised by one of the co-owners within one month of the date the seller announces an intention to sell the property.