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KembaraXtra – Legal Terms – Pre-emption
Pre-emption is a right of first refusal to purchase property if the owner later decides to sell it.
Unlike an option to purchase, a right of pre-emption does not compel the owner to sell the property.
Instead, it prevents the owner from selling to another person without first offering it to the holder of the pre-emption right on agreed terms.
The right must be drafted with sufficient certainty to be legally valid.
In registered land, rights of pre-emption created after 13 October 2003 may be protected by registration as a restriction on the proprietorship register.
Pre-emption rights are commonly used in property transactions, shareholder agreements, and commercial arrangements.
Pre-emption is a right of first refusal to purchase property if the owner later decides to sell it.
Unlike an option to purchase, a right of pre-emption does not compel the owner to sell the property.
Instead, it prevents the owner from selling to another person without first offering it to the holder of the pre-emption right on agreed terms.
The right must be drafted with sufficient certainty to be legally valid.
In registered land, rights of pre-emption created after 13 October 2003 may be protected by registration as a restriction on the proprietorship register.
Pre-emption rights are commonly used in property transactions, shareholder agreements, and commercial arrangements.
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