Law 64/2018, of October 29, entered into force today bringing changes to the tenants’ pre-emption right over the leased property, which can now be exercised after a 2 years lease period, instead of a minimum 3 years period as required previously.
In addition, the new legal regime also foresees the possibility of exercising such pre-emption right over a leased unit even if the property is not subject to the horizontal property regime.
Regarding properties which are not subject to the horizontal property regime, the new law allows tenants (who desire to do so) to exercise the pre-emption right collectively, acquiring the total property in co-ownership, pro rata.
In any of the cases, the deadline to exercise the pre-emption right was extended from 8 to 30 days.
This legislative amendment pushes aside the Portuguese Supreme Court’s case law according to which the tenant of a unit which is part of a property which is not under the horizontal property regime does not have a pre-emption right over the leased unit or over the total property.
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[Photo: Mikita Yo, available at: unsplash.com]