Selling a house in Madrid with the tenant living there is a completely legal procedure. Although many people think otherwise, it is a possible procedure that is often given, and that is regulated by the Law of Urban Leases.
The really tricky part of the matter is whether or not it is possible to throw the tenant out for the sale and what the rights of each one are. At Vivienda Capital Agencia Inmobiliaria in Madrid, we explain what happens to the landlord when the owner makes the decision to sell.
Do you want to sell your apartment in Madrid with tenants within the rental system?
This is what you should know:
No one who is interested in buying a house in Madrid is going to decide to do so without first having seen it carefully. So you will have to obtain the consent of your tenant, who a priori may not find the matter very amusing, or perhaps yes, if he is interested in acquiring it.
Tenant’s Right of Acquisition vs. Other Buyers
The tenant has, if desired, the opportunity to acquire and buy the property in the first place in front of other buyers. With a term of up to 30 days after the owner announces the sale of the property, the lessor may intervene and acquire it for the price established by the seller.
For that reason, it is necessary that in order that the apartment can be sold in a legal way, the owner announces the intention to do it, to the tenant of the property. This is called Preferential Acquisition Right.
If the buyer is an investor
It may always be feasible for the tenant to continue to have you as a tenant and to be able to sign a long-term contract. So it could be a good argument for the tenant to agree to show the house and facilitate the process.
It is necessary to give all kinds of comforts to the landlord since by right, because the law protects him, if he does not want to show the apartment, he will not have to do it and you will find it practically impossible to sell it.
What if I want to sell a house with a tenant who has a long term contract?
Rent contracts vary according to the years of duration. For example, in a three-year contract, tenant and landlord ensure a certain stability. Even if this is the case, in this type of long-term rental contract, the landlord can put the property up for sale if he wishes. However, the tenant may not be evicted until the tenant’s exemption. This does not mean that you cannot sell the apartment.
In short, if the dwelling is registered in the Land Registry with a formal contract, the owner of the flat cannot evict the tenant until the contract has been waived.
Finally, and although in the end it is definitely a good faith procedure, in the worst case scenario the tenant can always be compensated with some kind of advantage so that he can leave the property within a maximum period of 3 months.