Brussels Grants Tenants a Right of First Refusal Starting in 2024

As of January 1, 2024, tenants in the Brussels-Capital Region have gained a significant new right: the right of first refusal when their rental property is up for sale. This means that tenants now have the opportunity to prioritize purchasing the property they currently rent if the owner decides to sell. This new measure has important implications for both tenants and landlords. What does this change entail, and how does it impact the Brussels real estate market?

What Does the Right of First Refusal Entail?

The right of first refusal means that tenants are given the first opportunity to purchase the property they are renting when the owner decides to sell. Once the property is listed for sale, the tenant must be notified via registered mail. The tenant then has 30 days to respond to the offer. If the tenant declines or does not respond, the property can be sold to other buyers. However, if the property is sold at a lower price or under better conditions than initially offered to the tenant, the tenant must be notified again. The tenant will then have an additional 7 days to exercise their right of first refusal and buy the property.

Who is Eligible for the Right of First Refusal?

This right primarily applies to tenants who reside in unfurnished properties under long-term leases for their primary residence. Tenants must also be officially registered at the address of the rented property. However, the right of first refusal does not apply to short-term leases, sublets, co-tenants, or student rental agreements. Additionally, specific situations such as family sales, corporate mergers, or the sale of annuities are excluded from this regulation.

How Does the Right of First Refusal Work?

When the property owner decides to sell, they must notify the tenant of their intention through a registered letter. The tenant then has 30 days to respond to the offer. If the tenant is not interested or refuses the offer, the property can be sold to another buyer. However, if the property is later sold at a lower price or under more favorable terms than initially offered to the tenant, the owner must notify the tenant again. The tenant then has an additional 7 days to exercise their right of first refusal and purchase the property.

What Does This Mean for Landlords?

For landlords, the right of first refusal adds new responsibilities when selling a property. They must inform tenants in a timely manner and provide them with the opportunity to purchase the property. While some parties have expressed concerns that this could disrupt the real estate market, the aim of the measure is to make homeownership more accessible to tenants and provide them with a clearer path to becoming homeowners.

What Are the Benefits for Tenants?

The main benefit of the right of first refusal for tenants is that it provides them with the opportunity to buy the property they are already living in. This makes it easier for tenants to transition into homeownership, especially in a market where buying property can be challenging. The right of first refusal can offer tenants more stability, especially those who have lived in the same property for many years and feel connected to their community.

Conclusion: A Major Change for Tenants and Landlords

The introduction of the right of first refusal in Brussels is an important step in increasing access to homeownership for tenants. While landlords must adjust to the new rules when selling their properties, tenants now have the chance to buy the home they are living in. This measure could bring more stability to the housing market, benefiting both tenants and landlords, although its impact on the Brussels real estate market remains to be seen. Regardless, it provides tenants with a valuable opportunity to become homeowners in the property where they already feel at home.