Is it possible to sell a house that is rented?
The truth is that you can, and it is something that is contemplated and regulated in the Urban Leasing Law “Ley de Arrendamientos Urbanos”. The tenant is fully entitled to live in the property until the end of his contract, regardless of whether or not there is a new owner.
Who has first refusal rights to the property?
On account of the above Law, the tenant has the Right of first refusal (Derecho a Tanteo) and this right ensures that, when selling a house with a tenant, the tenant has the opportunity to acquire it first in front of the potential buyer. By law, in order for the property to be sold, the owner is obliged to announce to the tenant that he wishes to sell the house. He can acquire the property as long as he pays the price that the third buyer was willing to pay to the lessor.
What happens if the contract is not valid/registered?
If the rental contract is not registered to the property and the house is sold to a third party, the contract will have no value and the tenant must leave the apartment without the option to purchase or gain any compensation.
For further information do not hesitate to contact us.