Right of first refusal and withdrawal

What is the right of first refusal and withdrawal?

The rights of first refusal and withdrawal are real rights of preferential acquisition that grant the power to acquire one thing in preference to others.

• The right of first refusal: It is the power to obtain, with preference over others, an object that is going to be sold to a third party, paying the same amount that the third party would give for it.
• The right of withdrawal: The owner can replace the buyer of an object when its sale or transmission has already been carried out, paying the same amount that he gave for it at the time.

The right of first refusal is exercised before the sale and the right of withdrawal after the sale.

In order for them to be exercised, two requirements must be met:

• The existence of an agreement between the owner and a third person in which the conditions and price that the owner must pay to obtain his preferential right over other people are determined. When the owner matches the conditions that he would have agreed with the third party, he will have a preferential right that will prevent other people from acquiring the thing.
• The communication to the holder of the right of first refusal or withdrawal of the intention to sell or the sale carried out, respectively, so that he can exercise his right within the period established by law or by the contract.

Related concepts

• Rights in rem
• Preferential acquisition right