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?

United States

United States

Pre-emption rights are generally not imposed by statute. However, property owners can grant rights so that a particular party must be offered the property before it is sold to another; for instance, a property owner can grant an adjacent land owner and a landlord may grant its tenant, a right to purchase the fee interest in its property before the property owner sells it to a third party and in some cases a particular class of land (eg former railroad land) may be subject to statutory provisions requiring the land to be offered to certain parties before it is sold to another. Investigation into possible purchase rights should be done as part of due diligence investigations respecting title and survey review and can be addressed through title insurance.