A right of first refusal allows the purchase of a property before a third party. Our new article explores when it is possible to waive this right, and what should be considered in doing so.
In the context of real estate, a right of pre-emption allows an entitled person to purchase a property before the seller transfers ownership to a third party. The person with a right of pre-emption 'snatches' the property from the third party.
A distinction is made between contractual and statutory pre-emption rights. Both types of rights of pre-emption have the same purpose, but differ in their creation, validity and applicability.
However, in property transactions in particular, predictability and transaction security are "worth their weight in gold and money". Rights of pre-emption may conflict with these objectives. For this reason, parties often try to obtain a (prior) waiver of their rights of pre-emption from the entitled party prior to notarisation. The following article aims to shed light on whether and under what conditions such a (prior) waiver is legally possible.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
