Once a tenant occupies an apartment he must be made aware of that, if the renting contract is not registered in the Land/Property Registry, the owner is entitled to list and sell the property. Let´s consider two cases where the contract is and isn´t registered:
If the contract is registered in the Land/Property Registry, the contract will remain in effect even if the owner decides to sell the property. This is due to the Urban Leasing Act reform which came into force in 2013, as a measure to promote flexibility and property renting, since the buyer acquires all rights and obligations of the current landlord. This means the tenant does not have to leave the property until the contract expires not, but a transfer of the ownership of the contract may be made to the new owner or purchaser.
If a lease is not registered in the Land Registry, one must check the following:
- If the contract specifies the waiver of preferential purchase.
If this clause is signed the owner has the right to sell the property. This means that if the owner notifies, with a 30 day´s notice, that he has intention of selling, the tenant is required to vacate the property.
- • If the owner doesn´t notify that the property has been sold to a third party and this clause hasn´t been signed, the tenant may exercise their right to repurchase.
This means they can buy the property at the same price that it´s being sold to the third party, having 30 days to exercise this right.
The other assumption is that if the contract is of less than 3 years (today there is flexibility to agree on this point, given that the contract can be done with a minimum of 6 months). If a notice of the intent to sell is not informed before the end of the agreed renting period, the contract is automatically renewed up to three years more, which prevents the owner in selling the property until the renting contract expires. Selling of the property could only be acquired if the tenants’ rights were maintained.Here is a link for the Association of Property Management where you can find out how to register a renting contract in the Land/Property Registry : http://blog.registradores.org/?p=529
Our personal advice is to notify our intentions to the tenant and to agree on times and rental prices so that both parties have a good relationship and can carry out the sale. All this is useless if the tenant does not cooperate, it is difficult to sell a property if the future buyer cannot visit the actual property.
For any questions send your questions to alquiler@atipika.com, we specialize in successfully mediating property sales with tenants. It has to be done with all the respect and importance it deserves, protecting the owner’s right to sell and the tenant rights, since it is still their home, one of the most important possessions in the life of any person.Check out our website to see our property listings, you are guaranteed the sale and purchase under any circumstances. https://atipika.com/en/real-estate-search/
