Derecho De Tanteo y Retracto (Right of First Refusal and Withdrawal)

Posted in: Legal


Right of First Refusal New Law of June 2020

In June 2020, a new regulation came into force in the region of Valencia (Law 6/2020 of 5th June). This has had a great impact on the property market of the region.

This new regulation states that the region of Valencia is entitled to exercise the right of first refusal and withdrawal. This is for any property transaction made within the region.

Therefore, before a sale is completed in the region of Valencia, the owner must apply for such an authorisation to the government of the region of Valencia.

A sale cannot been completed now without this authorisation at a Notary.

What Properties need Right of First Refusal Authorisation?

The properties that need this authorisation are:

  •            Properties bought before 21/04/2005. The law was granted on the 20th of  October 2004, but it came applicable 6 months later, thus the 21/04/2005. If you purchased the property before then, you don´t need to apply for the authorisation
  •              Properties acquired after 21/04/2005 from Banks. Therefore, if a Bank owned your property after 21/04/2005 you need an authorisation to sell.

It doesn´t matter how many owners owned the property before you, if a Bank was once an owner of your house, you need the authorisation.

Some Houses Not Affected Still Require a Certificate

It is important to understand that an owner must prove that the house is not affected by this regulation. Therefore, an owner needs an certificate from the Land Registry office. This will show the house is not affected by this Law for completion at the Notary.

Summary:

  •             If the house was bought before 21/04/2005, an owner need do nothing.
  •              If the house was bought after 21/04/2005 and it was not owned by a bank, the owner needs a certificate from the Land Registry Office to prove it.
  •               If the house was bought after 21/04/2005 and it was owned by a bank, the owner needs to apply for the authorisation from the government of Valencia

The certificate from the Registry could take 4/5 days

The authorisation from the Region of Valencia could take up to 2 months.

If documentation is not correct at the Notary, completion cannot take place.

Now more than ever, it is important that a qualified professional such as a lawyer deals with sale and purchase of property in Spain. Many property owners will not realise regarding this new law if selling their property. Nor nor how to go about obtaining relevant authorisations.

If we can help you with sale or purchase of a property and conveyancing, please let us know or if you have any questions.