Pre-emption right (right of first refusal)

The statutory pre-emption right allows co-owners of property held in shares, when one co-owner sells their share to a third party, to acquire that share on the same terms with priority. Its purpose is to limit the entry of outsiders into the co-ownership.

The right is exercised only after a sale has taken place and only through a lawsuit against the third-party buyer. The sale must be notified to the co-owners through a notary; the action is subject to a short forfeiture period running from notification, or to a longer outer limit running from the sale where no notice was given. A successful claimant acquires the share by depositing the sale price and the buyer's transaction costs.

The right does not apply to sales between co-owners. Understating the price in the deed is a serious risk for sellers, since the deposit in a pre-emption case may be based on the recorded figure.