What the Right of First Refusal for Tenants in Brussels Means

Since January 1, 2024, tenants in Brussels have gained a new right that gives them more power when it comes to the sale of their home. This so-called "right of first refusal" gives tenants the opportunity to prioritize purchasing the property they currently rent when the owner decides to sell. But what exactly does this right mean, and what does it mean for both landlords and tenants? In this article, we explain it all.

What is the Right of First Refusal for Tenants?

The right of first refusal means that tenants of unfurnished homes with long-term leases now have the opportunity to buy the property they rent when it is put up for sale. The landlord is required to notify the tenant of the sale via registered mail. The tenant then has 30 days to decide whether they want to exercise this right and purchase the property. This is a key step in simplifying access to homeownership for tenants in Brussels.

Who is Eligible for the Right of First Refusal?

This right primarily applies to tenants living in unfurnished homes with a long-term lease for their main residence. The tenant must also be registered at the address of the rental property. However, the right does not apply in all cases. Short-term leases, co-tenants, student rentals, sublets, and specific situations like intra-family sales or corporate mergers are excluded from this regulation. Sales involving life annuities, usufruct, or naked ownership are also not covered by this right.

How Does It Work in Practice?

When a landlord decides to sell their property, they must inform the tenant via registered mail. From that moment, the tenant has 30 days to respond to the offer and purchase the property at the proposed price. If the tenant declines or does not respond, the property can then be offered to other buyers.

However, if the property is later offered to another buyer at a lower price or under more favorable conditions, the tenant must be notified again. In this case, the tenant 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 means additional administrative obligations. They are required to inform tenants about the sale and clearly communicate the terms. This could delay the sales process, as the tenant has 30 days to respond, followed by an additional 7 days if the terms change. While landlords may be concerned about the impact on the sale of their property, the measure aims to improve access to homeownership for tenants, which could contribute to a more stable housing market in the long run.

What Are the Benefits for Tenants?

For tenants, the right of first refusal offers a unique opportunity to purchase the property they are already familiar with and feel at home in. This could be an attractive option for tenants who wish to invest in homeownership but may find it difficult to secure property through traditional real estate markets. It prevents tenants from being suddenly displaced due to the sale and offers them more security in their living situation.

Conclusion

The right of first refusal for tenants in Brussels is an important development that brings both benefits and challenges for landlords and tenants alike. While it offers tenants a unique opportunity to buy their rented property, it also introduces extra administrative requirements and potential delays in the sales process for landlords. The measure is designed to make homeownership more accessible to tenants, which in the long term could contribute to a more stable and fairer rental market in Brussels.