{"id":13077,"date":"2025-11-12T09:58:11","date_gmt":"2025-11-12T09:58:11","guid":{"rendered":"https:\/\/www.consultants-immobilier.com\/?page_id=13077"},"modified":"2025-11-12T09:58:11","modified_gmt":"2025-11-12T09:58:11","slug":"what-is-the-right-of-first-refusal-in-real-estate","status":"publish","type":"page","link":"https:\/\/www.consultants-immobilier.com\/en\/sellers-guides\/the-stages-of-the-sale\/promise-to-sell\/what-is-the-right-of-first-refusal-in-real-estate\/","title":{"rendered":"What is the right of first refusal in real estate?"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row full_width=&#8221;stretch_row_content&#8221; content_placement=&#8221;top&#8221; css=&#8221;.vc_custom_1670852810251{background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}&#8221; el_class=&#8221;back_div&#8221;][vc_column css=&#8221;.vc_custom_1657728499249{padding-right: 15px !important;padding-left: 15px !important;}&#8221;][vc_raw_html css=&#8221;&#8221;]JTNDZGl2JTIwY2xhc3MlM0QlMjJteV9iYWNrX2J1dHRvbiUyMiUzRSUwQSUwOSUwOSUwOSUwOSUwOSUwOSUzQ2ElMjBocmVmJTNEJTIyaHR0cHMlM0ElMkYlMkZ3d3cuY29uc3VsdGFudHMtaW1tb2JpbGllci5jb20lMkZlbiUyRnByb3BlcnR5LWd1aWRlcyUyRiUyMiUzRSUzQyUyMEJhY2slMjB0byUyMHByb3BlcnR5JTIwZ3VpZGVzJTNDJTJGYSUzRSUwQSUwOSUwOSUwOSUwOSUwOSUzQyUyRmRpdiUzRQ==[\/vc_raw_html][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1762941150427{background-image: url(https:\/\/www.consultants-immobilier.com\/wp-content\/uploads\/2025\/11\/preemption.jpeg?id=13078) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;}&#8221; el_class=&#8221;override_left&#8221;][vc_column css=&#8221;.vc_custom_1657728499249{padding-right: 15px !important;padding-left: 15px !important;}&#8221;][\/vc_column][\/vc_row][vc_row el_class=&#8221;override_pos&#8221;][vc_column][vc_row_inner css=&#8221;.vc_custom_1662026446228{background-color: #e4e4e4 !important;}&#8221;][vc_column_inner][vc_custom_heading text=&#8221;What is the right of first refusal in real estate?&#8221; font_container=&#8221;tag:h1|font_size:37|text_align:center|color:%23040e31&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1762941307550{padding-right: 20px !important;padding-bottom: 30px !important;padding-left: 20px !important;}&#8221; el_class=&#8221;relative_pos&#8221;][\/vc_column_inner][\/vc_row_inner][vc_row_inner equal_height=&#8221;yes&#8221; el_class=&#8221;firstblock guide-wrapper-row vc_row-o-equal-height vc_row-flex&#8221; css=&#8221;.vc_custom_1765897502487{background-color: #ffffff !important;}&#8221;][vc_column_inner width=&#8221;4\/5&#8243;][vc_column_text css=&#8221;&#8221; el_class=&#8221;resume_block&#8221;][\/vc_column_text][vc_column_text css=&#8221;&#8221; el_class=&#8221;content_block&#8221;]<span style=\"font-weight: 400;\">The <\/span><b>right of first refusal<\/b><span style=\"font-weight: 400;\"> allows certain individuals or organizations to purchase a property for sale before any other buyer, under the same terms agreed upon with the seller. For example, you may find a buyer for your apartment listed at \u20ac800,000, only for the city council to step in and acquire it at the same price. This legal mechanism, often unknown to sellers, can derail a sale at the last moment and delay the process by several months.<\/span><\/p>\n<h2><b>How exactly does the right of first refusal work?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The right of first refusal is a preferential right exercised through <\/span><b>several legally regulated steps<\/b><span style=\"font-weight: 400;\">. As soon as a <\/span><a href=\"https:\/\/www.consultants-immobilier.com\/en\/sellers-guides\/the-stages-of-the-sale\/sales-agreement\/\"><span style=\"font-weight: 400;\">sales agreement<\/span><\/a><span style=\"font-weight: 400;\"> or a <\/span><a href=\"https:\/\/www.consultants-immobilier.com\/en\/sellers-guides\/the-stages-of-the-sale\/promise-to-sell\/\"><span style=\"font-weight: 400;\">promise to sell<\/span><\/a><span style=\"font-weight: 400;\"> is signed, the notary must send a Declaration of Intent to Sell (DIA) to the holder of the right. This entity then has <\/span><b>two months<\/b><span style=\"font-weight: 400;\"> to respond:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They may decline,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They may exercise the right and buy at the proposed price,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Or they may make a counteroffer.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If the holder accepts the price, the sale is automatically transferred to them, and the initial buyer is excluded. If they offer a lower price, the seller can refuse, accept, or withdraw the property from sale.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In case of a dispute over the price, the expropriation judge decides. Key point: silence equals waiver. If no response is received within two months, the sale proceeds normally.<\/span><\/p>\n<h2><b>Who can exercise the right of first refusal?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Several entities hold this right.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most commonly, <\/span><b>municipalities<\/b><span style=\"font-weight: 400;\"> exercise their urban preemption right (DPU) to build social housing, public facilities, or protect local businesses. In Paris, this right applies in almost every district.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b>State<\/b><span style=\"font-weight: 400;\"> also preempts properties to protect historical heritage or natural areas. For instance, a classified ch\u00e2teau or a remarkable private mansion may trigger State intervention.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b>departments and regions<\/b><span style=\"font-weight: 400;\"> may intervene for specific development projects.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even <\/span><b>tenants<\/b><span style=\"font-weight: 400;\"> enjoy a right of first refusal when their rented property is sold, and <\/span><b>farmers<\/b><span style=\"font-weight: 400;\"> can preempt agricultural land they work on.<\/span><\/p>\n<h2><b>Which properties are subject to the right of first refusal?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In urban areas, the right applies to built or undeveloped properties located in <\/span><b>U zones (urbanized)<\/b><span style=\"font-weight: 400;\"> or <\/span><b>AU zones (to be urbanized)<\/b><span style=\"font-weight: 400;\"> as defined in the Local Urban Plan (PLU). Sales of SCI shares giving ownership rights to a property are also covered.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Exemptions include: properties under ten years old (except under reinforced DPU), donations, sales between relatives up to the sixth degree, and sales between co-owners.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Note: in Paris and other major cities, reinforced DPU applies even to recent condominiums. An apartment on Avenue Victor Hugo can be preempted even if it was built in 2015.<\/span><\/p>\n<h2><b>How can I find out if my property is subject to preemption?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">First, consult your municipality\u2019s Local Urban Plan (PLU), available at the town hall or online. Areas subject to DPU are clearly identified there. The notary will always verify this before preparing any <\/span><a href=\"https:\/\/www.consultants-immobilier.com\/en\/sellers-guides\/the-stages-of-the-sale\/preliminary-sales-agreement-definition-steps-and-obligations\/\"><span style=\"font-weight: 400;\">pre-sale agreement<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For luxury or heritage properties, additional checks are required:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A private mansion in Le Marais? Check if it\u2019s in a protected heritage zone.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An estate with parkland on the outskirts? Verify if it\u2019s within a designated natural protection area.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A certificate of urban planning, free and valid for 18 months, provides all this information. The peace of mind costs \u20ac0, with a one-month processing time.<\/span><\/p>\n<h2><b>Can the right of first refusal be circumvented?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">No. Any attempt is penalized. For instance, <\/span><b>declaring a higher price<\/b><span style=\"font-weight: 400;\"> is a bad idea \u2014 the authorities will verify it. The same applies to <\/span><b>concealing part of the price through the sale of furniture<\/b><span style=\"font-weight: 400;\">; if the discrepancy is excessive, it will be reclassified automatically.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Example: you sell your apartment for \u20ac1.2 million, but to discourage the city from preempting (as it must pay the declared price), you state \u20ac1.5 million in the DIA and privately agree with the buyer that they will only pay \u20ac1.2 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This common tactic almost always fails. The authorities can request your bank statements, assess the furnishings, and uncover the fraud. Consequences? The city preempts at the actual value (\u20ac1.2 million), the sale can be annulled, and you risk fines or even criminal prosecution for falsification.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The only legal options are either to wait for the preemption period (two months) to expire without action or to contact the city beforehand to determine whether it has plans for your area and, if so, negotiate directly.<\/span><\/p>\n<h2><b>What impact does it have on sale timelines?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The right of first refusal inevitably extends the process. Expect <\/span><b>a minimum of two months between signing the sales agreement and the clearance of the preemption right<\/b><span style=\"font-weight: 400;\">. If there\u2019s disagreement over price, add six to twelve months of legal proceedings. In the Paris luxury market, where many buyers are international, these delays can derail deals.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Professional tip: include a <\/span><a href=\"https:\/\/www.consultants-immobilier.com\/en\/sellers-guides\/the-stages-of-the-sale\/sales-agreement\/suspensives-conditions\/\"><span style=\"font-weight: 400;\">suspensive clause<\/span><\/a><span style=\"font-weight: 400;\"> for non-preemption in the sales agreement. If the municipality preempts, both seller and buyer are released with no penalty. Also allow sufficient time in the <\/span><a href=\"https:\/\/www.consultants-immobilier.com\/en\/sellers-guides\/the-stages-of-the-sale\/deed-of-sale\/\"><span style=\"font-weight: 400;\">final deed of sale<\/span><\/a><span style=\"font-weight: 400;\"> \u2014 at least three months after the agreement \u2014 to safely accommodate the preemption clearance.<\/span><\/p>\n<h2><b>The right of first refusal in the luxury real estate market: what are the risks?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Prestige properties often attract the attention of public authorities. A private mansion may become a museum, or a large apartment may be converted into social housing. In Paris, the city regularly preempts properties in upscale districts to preserve social diversity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To secure your high-end transaction and anticipate preemption risks, <\/span><b>Consultants Immobilier<\/b><span style=\"font-weight: 400;\"> and its network of 17 agencies leverage their in-depth knowledge of local urban policies. Our experts advise on appropriate sales strategies and assist you through every step, ensuring a smooth transaction despite the complexities of preemption law.<\/span>[\/vc_column_text][\/vc_column_inner][vc_column_inner width=&#8221;1\/5&#8243; el_id=&#8221;summary_column&#8221;][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The real estate right of first refusal is exercised before the sale. Discover its process, key players, affected areas, and impact on your timeline.<\/p>\n","protected":false},"author":6,"featured_media":13079,"parent":8505,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"single-guide.php","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-13077","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Real estate right of first refusal: how it works and its impact<\/title>\n<meta name=\"description\" content=\"The real estate right of first refusal is exercised before the sale. 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