Resolution of the General Board of the Registries and Notary (Dirección General de los Registros y del Notariado, DGRN) dated June 30th 2011, with regard to the tenants’ right of preemption under the 1964 Tenancy Act

4 November 2011

In accordance with the resolution, the right of preemption under the 1964 Tenancy Act is applicable:

  • to the tenancy agreements under the 1964 Tenancy Act, as the current Tenancy Act does not contain a transitional provision to the contrary;
  • not only with regard to the transfer of the rental object by means of sale but also – as in the present case in the context of a transfer in lieu of payment (dación en pago) – this in contrast to the 1994 Tenancy Act that explicitly allows a right of preemption only in case of sale of the rental object;
  • Furthermore, to transfers of all units of an estate in property of the lesser as a whole, as in fact the 1964 Tenancy Act does not contain a provision similar to art. 25.7 of the 1994 Tenancy Act that would exclude the right of preemption in these cases. To the contrary, the application of a different interpretation would lead to the exclusion of the tenants’ right of preemption in those cases when the lesser opts for a transfer of a block of real estate units – although in the present case no such block transfer took place.

Therefore, the Registries do not record the transfer unless the tenants have been duly notified of their right of preemption. However, the DGRN also decided that the refusal to record the transfer of those units that do not fall under the application of the 1964 Tenancy Act is unjustified.

For further information, please contact Janis Amort: jamort@mmmm.es