The right of pre-emption generally means that the owner of the thing (the seller) is obliged to inform the pre-emptive beneficiary of the intended sale of the thing to a certain person, the conditions of this sale, and offer him to buy it under these conditions before the sale. We will present you with the most common examples of pre-emptive rights when selling or buying properties.
Preemptive right of co-owners
In accordance with the third paragraph of Article 66 of the Law of Property Code, the co-owners have the right of pre-emption during the sale. Each co-owner can dispose of his property right without the consent of the other owners, but the other co-owners have preemptive rights. Example; if three sisters own up to one-third of the property each, they can each sell one-third of the house. However, when she finds a buyer for her third, before the sale, she must inform the other co-owners (sisters) and offer them to buy her part under the same conditions.
In practice, the co-owners usually agree and decide to sell together, i.e. the object of sale is the entire property, and there are three sellers.
Condominium owners’ right of pre-emption
In accordance with Article 124 of the Law of Property Code, condominium owners have a right of first refusal when selling an individual part of a condominium, if the property has more than two condominium owners and does not have more than five individual parts.
When selling an apartment in an apartment building, it may happen that your neighbors are pre-emptive beneficiaries in the sale. Other condominium owners are pre-emptive beneficiaries only when the entire property (apartment building) has no more than five individual parts. If there are six apartments or more in the building, condominium owners do not have the right of pre-emption.
Preemptive right of the municipality
The municipality in which the property is located may also have a right of pre-emption. Most often, there is a right of pre-emption by the municipality on the basis of a municipal decree. Whether or not the municipality has a right of pre-emption on the property in question can be understood from the location information. The municipality has the right of preemption, especially on strategically important land for the municipality. The municipality’s right of pre-emption exists on a relatively large part of the land, but the municipality rarely exercises it.
Right of pre-emption in the sale of agricultural land, forest or farm
A special procedure applies to the sale of agricultural land, forest or farm. In the sale of such land, co-owners, tenants, lessees, farmers, agricultural organizations and the Agricultural Land and Forest Fund have the right of first refusal. If pre-emptive beneficiaries do not exercise their pre-emptive right, the owner can sell the land to anyone.
For more information or a consultation, please contact us; Phone: 00386-40-626-131, E-mail: tajnistvo@bazarealestate.com.
