The tenant’s right of preference in Portuguese legislation is a legal mechanism that guarantees the tenant the opportunity to acquire the property they are renting, if the owner decides to sell it. Here are the main aspects of this right:
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Conditions for Exercising the Right of Preference:
The tenant must have been living in the rented property for residential purposes for at least two years to have the right of preference in the purchase. It is important to note that the law does not require the tenant to wish to acquire the property for their own and permanent residence; the purpose of use after acquisition is irrelevant for exercising the right.
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Procedure for Exercising the Right:
The owner must notify the tenant of the intention to sell the property, indicating the price and conditions of the sale. This communication must be made by registered letter with acknowledgment of receipt. The tenant has a period of 30 days, from receipt of the communication, to exercise their right of preference.
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Exceptions and Other Entities with Right of Preference:
In certain circumstances, such as in areas of urban pressure, public entities such as municipalities, autonomous regions, or the State may also have the right of preference in purchasing the property. This can occur in areas where there is a lack of housing or in properties classified for heritage protection.
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Consequences of Non-compliance (Preference Action):
If the owner sells the property to a third party without giving the tenant due right of preference or omitting the correct conditions of the sale, the tenant has the right to file a Preference Action (Article 1410 of the Civil Code). This is the most serious legal sanction for the seller, as it allows the tenant to replace the third-party acquirer in the contract, depositing the price and sale expenses within six months from knowledge of the sale.
The right of preference is an important protection that guarantees the tenant the opportunity to acquire the property, with the safeguard that non-compliance with this right by the owner may result in the annulment of the sale through a Preference Action filed by the tenant.