When a landlord intends to sell a rented house, the tenant may have a right of first refusal, meaning the possibility of buying the property before any other buyer, provided they accept exactly the same conditions as the existing offer. This mechanism is provided for in Article 1091 of the Civil Code and allows people with a long-standing relationship with the property to have priority in acquisition.
According to current law, a tenant with a lease agreement older than two years may benefit from this right. The landlord must communicate the sale conditions to the tenant, who has 30 days to decide whether they wish to exercise the right of first refusal. If they proceed, the purchase must be made on the exact terms agreed with the potential buyer.
The regime was amended by Law No. 64/2018, of October 29, which reduced the minimum contract period from three to two years, thus expanding access to this mechanism. There are two types of right of first refusal: the legal one, which results directly from the law and applies automatically, and the conventional one, which arises from an agreement between the parties defined in the contract.
It is important to note that having a right of first refusal does not guarantee the completion of the purchase, it only ensures priority over other interested parties. The tenant must accept all negotiated conditions, including the asking price. In addition to tenants, this right may also cover co-owners or certain public entities.
