Renter's right of pre-emption in the event of a price drop: An essential protection to know

When an owner decides to sell a property occupied by a tenant, the latter has a right of pre-emption giving him priority to acquire the dwelling. An important question then arises: what happens if the selling price is subsequently reduced? In this article, we explore the rights of the tenant in such situations and the need for the landlord to notify the tenant of the new offer. A recent decision of the Court of Cassation highlights the importance of respecting this legal obligation.

Leave for sale: an offer to sell for the tenant:
When a landlord issues a leave for sale to his tenant, this leave is equivalent to an offer of sale for his benefit. During the first two months of the notice, the tenant can therefore accept this offer and begin the acquisition process.

Negotiation and the possibility of price reduction:
It is common for the tenant to negotiate the price offered in the initial leave. If the owner accepts a lower offer, it is crucial to consider the consequences of this decision.

The obligation to notify the new offer:
If the owner subsequently decides to lower the sale price and transfer the property to a third party, he must notify the tenant of this new offer, even if the price agreed with the third party is identical. This is essential in order to respect the rights of the tenant and avoid possible disputes.

The decision of the Court of Cassation:
The Court of Cassation recently issued a key decision (Court of Cassation, 3rd Civil Chamber, 11 May 2022, No. 20-15.659) confirming the importance of this notification. In this case, the trial judges had initially rejected the request for nullity of the tenant's sale on the grounds that she was aware of the price reduction. However, the Court of Cassation overturned this decision, stressing that the landlord must send a new offer to the tenant, regardless of the circumstances.

Consequences of non-notification:
If the owner fails to notify the tenant of the new offer following a price reduction, the tenant may request the nullity of the sale. It is therefore essential for owners to comply with this legal obligation in order to avoid any litigation.

Conclusion:
The tenant's right of pre-emption in the event of the sale of occupied property is an essential protection. In the event of a price reduction, the owner must notify this new offer to the tenant, even if the price agreed with a third party is identical. The decision of the Court of Cassation recalls the importance of respecting this legal obligation and preserving the rights of the tenant.