- What is the sale to the cut?
- Tenants' right of first refusal at a cut-out sale
- Cutting sale: tenants have a period of 6 years or can buy the house
More and more institutional backers (such as banks and insurance companies), private property companies or private individuals want to sell their rental assets, given real estate prices.
What is the sale to the cut?
Cutting means that a landlord wishes sell in block his building whose apartments are usually occupied by tenants. Once the building is resold, the new purchaser will in turn resell lot by lot to private investors, individuals wishing to acquire property, or tenants already present in the building, if they wish.
Tenants' right of first refusal at a cut-out sale
At a cut-up sale, the tenant's fate depends on several parameters. They can buy the home they occupy or obtain an extension of their lease in two ways:
- If the sale concerns a condominium composed of less than 5 dwellings, the landlord is not obliged to offer housing for sale in priority to tenants already in place.
- If the sale concerns a condominium composed of more than 5 dwellings, the tenant benefits from this right of pre-emption allowing him to be a priority to buy the housing he occupies, if he wishes.
Cutting sale: tenants have a period of 6 years or can buy the house
When the seller is preparing to sell a block of flats with more than five dwellings, he has the obligation to question the potential buyer about his intentions vis-à-vis the tenants when he sells to the cutting:
- The potential buyer can commit to extend leases by six years tenants present, this period running from the signing of the final deed of sale. Since this is a building with more than 5 units, tenants will have a pre-emption right, but if they refuse to buy their home they will be able to stay there for six years. If they agree to buy the home, they will have two months to sign the final deed of sale, or four months if they need a loan from the bank.
- If the potential buyer does not wish to commit to extending the six-year leases, the homeowner must first offer the homes for sale to existing tenants. This means that the owner-lessor will have to sell himself to the cut. He must therefore send an offer of sale to each tenant, which will remain valid for 4 months. At the end of this period, if the tenants accept the proposal, they will then have 2 months to sign the final deed of sale, or 4 months if they need a loan from the bank. If renters refuse the offer, the landlord can then sell the units to third parties.