What is a pre-emptive right?

What is the difference?

Both rights are a possibility that a law or an agreement allows a person to purchase a good.

In case of preference, this is to purchase a good, preferably on every other person. From a practical point of view an owner must offer the property for sale to that specific person before making the sale public. Only then can it be presented to other potential buyers.

In the case of the right of pre-emption it is the other way round. Here the owner may offer his property for sale to the public and establish a sales contract with agreed price and conditions. The seller must then submit this agreement to the holder of the pre-emptive right, on which the latter can then choose to purchase the property at the same price and conditions. He replaces the initial buyer, as it were.

For whom is there a pre-emptive right in Flanders?

The Flemish government, the local authorities (provinces, municipalities, ...), government institutions (such as De Vlaamse Waterweg, for example) can levy a right of pre-emption on your property. The intention is to be able to realize their public service mission.

The agricultural tenants also have a pre-emption right through the lease law. These are farmers who rent farmland and farm. This is intended to protect their profession and income.

Furthermore, a pre-emption right can also be set out contractually. A perfect example is the situation of a commercial lease. Very often it is the case that someone hires a retail space and above that also handles the interior to create the right looks. This is quite a considerable investment. In addition, the location will also be linked to this store by customers over time. A smart move is that an extra condition of pre-emption is added in the lease. In this way, this store manager has the opportunity to protect his store and to buy the commercial property if it ever comes for sale.

An interesting fact: if you inherit, the right of pre-emption is not applied! There is a new owner, but no sales have been made.

Is your property subject to pre-emptive right?

If you have recorded the right of pre-emption in a contract, you will already know the situation. The landowners who rent to farmers are also automatically known with the right of pre-emption on their land.

Most owners are not very well informed about the other types of pre-emptive rights to their property. There is always a possibility to look this up. You can check this on the website www.geopunt.be. This is a very extensive website.

If you want something a little easier, Pillars can always provide you with free information as a real estate agent.

Wondering if there is a right of pre-emption on your property or the property in which you are interested? Contact Pillars here.

Source: Vastgoed in Pocket voor het Vlaamse Gewest; www.vlaanderen.be, www.geopunt.be