Beware of the administration right of rights of first refusal and withdrawal in the Valencian Community.

In today’s article we are going to talk about Decree-Law 6/2020, for the expansion of public housing through the rights of first refusal and withdrawal in the Valencian Community.

The right of first refusal.

According to the aforementioned rule, a pre-emption or first refusal is conferred to the Generalitat Valenciana. Which means, a preference over third parties for the purchase of properties.

That is, they have the right to buy it by paying the sale price. And the administration must be notified prior to the sale.

The right of withdrawal.

Likewise, the aforementioned norm recognizes the right of withdrawal in favour of the authorities of the Valencian Community. Which means, the right to acquire the property that has been sold, without complying with the notification obligations mentioned above, etc.

I.- Preferential right over officially protected housing.

These rights of first refusal and withdrawal of the Generalitat are recognized, in relation to public protection housing, in accordance with this law, as long as said official protection qualification is maintained.

An official protection home is one that is normally been promoted by the public administration, and that is normally for people with fewer economic resources, having a limited price, etc. Normally this regimen has a limited time duration.

According to this rule, and the subsequent circular about its interpretation, it has been clarified that it cannot be acquired preferably by the administration, in the case of inheritances, or gifts in favour of descendants, ascendants spouse or partner, except when the dwelling is not going to be used as the habitual and permanent residence of the new owner.

Duration of these rights. In these cases, the Generalitat will be the owner of the rights of first refusal and withdrawal for the transmissions made during the entire period of validity of the official protection regime.

Permanent qualification. The dwellings that are acquired in the exercise of these preferential acquisition rights, by the administration, will be classified as permanently protected homes.

II.- Rights on singular transmissions.

Likewise, these rights, in addition to officially protected housing, will also apply (with some specialities) to a series of singular transmissions.

These are described in article 10. That is, they will also have preferential acquisition rights in relation to the properties that:

.- Have been acquired through transfer in payment of debt guaranteed with a mortgage.

.-Those acquired in a court process of foreclosure or in an extra court sale procedure in a notary’s office.

.- Transmissions of buildings, with a minimum of five dwellings, when at least 80% of said building is transmitted.

ETC

As an essential requirement, the dwellings must be located in the municipalities included in the areas of housing need.

Therefore, if you what to know about the rights of first refusal and withdrawal in the Valencian Community. Or if you are  going to acquire a property in Spain, or to sell it, and you want expert specialized legal advice, contact us.

You can also stay informed on our FACEBOOK.

The information provided in this article is not intended to be legal advice, it merely conveys information related to legal issues.

Carlos Baos (Lawyer)

White & Baos

Tel: +34 966 426 185

E-mail: info@white-baos.com

White & Baos 2021- All Rights Reserved.

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