Buying well is not enough — you must buy free of anyone who can pre-empt. Many property transactions involve a right of first refusal (pre-emption): a third party’s right to acquire the property on the same terms, ahead of the chosen buyer. Identifying it in time prevents the deal from being called into question.
The tenant
A tenant under a lease of more than two years generally has a right of first refusal on the sale of the leased premises (Article 1091 of the Civil Code, as amended by Law No. 64/2018). The landlord must notify them of the sale project and its terms, and the tenant has 30 days to exercise the right.
Co-owners
On the sale of a co-ownership share, the other co-owners have a right of first refusal (Article 1409 of the Civil Code). This is common in inherited, undivided property, where selling a share to an outsider must respect the others’ pre-emption.
Public entities
In certain circumstances, the municipality or the State hold a right of first refusal — notably for properties in urban rehabilitation areas (ARU) or listed properties. The pre-emption notice is now filed electronically with the competent authorities.
The risk of ignoring pre-emption
If a holder of a right of first refusal is bypassed, they may bring a pre-emption action and, as a rule, take the buyer’s place, acquiring the property. The deal that seemed closed unravels. Mapping pre-emption rights before the deed is therefore essential.
Before buying, confirm who can pre-empt
Checking for tenants, the ownership structure and the property’s framework avoids later invalidation and protects the investment.
Buying or selling a property? Paulo Silva Silva, Lawyer, identifies and safeguards rights of first refusal in the transaction. Book a meeting or contact paulosilvasilva.adv@gmail.com · 916 055 901.
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The information in this article is general and institutional in nature; it does not constitute legal advice and does not create a client relationship. Always confirm the version in force of the statutes cited in the Diário da República (dre.pt).