Although it may be hard to believe, it is actually common practice to sell a home that is already occupied and rented out. The reasons for this are varied: liquidity needs, inheritances, or personal decisions that entail changes in the owner’s assets. However, when such a sale takes place and the property is a person’s home, there are numerous specific requirements that the owner must meet, as well as rights that must be respected as a landlord.
The owner of a home can sell their property at any time, and there is no legal obstacle to doing so—not even the existence of a lease. However, this does not mean that the tenant can be evicted without notice. As long as both the lease and the property are registered in the public land registry, the tenant has the right to remain in the property until the end of the lease.
What does the law say about tenants’ rights?
Under the Urban Leases Law (LAU), tenants are required to comply with a protocol regarding the existing lease before their property is sold. The most important step is to notify the tenant and comply with the legally required 30-day period for exercising the right of first refusal. This notification, known as the “right of first refusal,” must be made in writing and must include the date, the intention to sell, and other relevant information.
In addition to this notification, tenants have an often overlooked right: the right of preferential purchase. This right allows the tenant to purchase the property with priority over other interested parties. The conditions under which this right can be exercised are set out in the Municipal Lease Law.
Owner’s Obligations When Selling and Renting
All potential buyers must be aware of the current situation of the property they wish to purchase. They must also be informed about the lease agreement and all related aspects. For example, it is important to know whether the tenant will comply with the deadlines, respect the property, and who will be responsible for the community and the property tax (IBI). According to the Fotocasa portal, the prospective buyer thus has all the necessary information about the property to decide whether or not to proceed with the purchase.
The obligation to provide information is closely linked to the obligation to comply with rental agreements, if registered. However, if such a rental agreement is not registered in the Land Registry, the LAU applies Article 1571 of the Civil Code, which states that “the purchaser of a rented property has the right to terminate the existing rental agreement once the sale is completed.” In other words, the new owner has the right to terminate the contract with the tenant once the purchase is completed.
