Questions about buying a home with a right of repurchase? Ask a lawyer!

Questioner

I am in the process of buying a house together with a friend. A right of repurchase applies to this house. The present deed of sale states: Seller (A) and buyer (B) hereby record that if the seller wishes to alienate the reserved part of the plot and has informed the municipality of XX that he does not wish to repurchase after completing the procedure established for this purpose, then the seller will give the buyer (in the deed in question) the first opportunity to acquire this part of the plot (additionally) at a purchase price to be determined/agreed upon at that time, based on a mutually performed valuation. The procedure applicable at that time will be the same as that applicable between the seller and the municipality of XX. In January we signed a purchase agreement which the seller (A) used towards the municipality of XX and buyer (B) and asked to inform him of the fact whether the parties wish to make use of their right of repurchase. The municipality has indicated that it will not make use of this. In our view, party (B) is deliberately frustrating the process and does not want to make any definitive statement about this until a realistic purchase price has been determined by both parties. Party (A) now states, however, that by means of the current purchase agreement (on our part) of €140,000, this is a realistic purchase price (Based on two valuations of 160K and 165K drawn up by party A, and 125K drawn up by party B). Party B indicates that he wants to offer 81K because it is offered in a rented state. However, party A has indicated that he will deliver the property in an unrented state upon sale. Since we are now half a year further, and no official decision has been made regarding the use of the right of repurchase by party B, Party A intends to sell the registered property to us without an official decision. Party A therefore does not expect that Party A will cooperate at any other time and will continue to frustrate the process for as long as possible. My question: What risks do we as a purchasing party face in this matter? And what laws and regulations apply? The procedure that has been followed so far is what is recorded in the purchase deed by the notary. Of which it can be said that this gives the opportunity for own interpretation, which is why party B is dragging out the process for so long. Thank you in advance for your answer. PS: Depending on the answer and the further process, I feel the urge to seek more extensive advice, for a fee, on this matter.

Lawyer

As a purchasing party, you run the risk that B will try to stop the sale by starting summary proceedings. In addition, B could start proceedings against you claiming that you are acting unlawfully because you know that there is a preferential right for B and that you are taking advantage of the fact that A is violating the preferential right. B can claim damages on that basis. A possible solution might be to request a declaratory judgment if there is a difference of opinion about how the agreement should be interpreted.

Lawyer

Agreed but B has already been offered to use the right to purchase. If no provision has been agreed regarding the validity of the purchase option, the reasonableness of the law will have to provide a solution here. B cannot and may not permanently frustrate the right to purchase of C, the third party buyer. Is buyer B also an administrative body? Then the rules for the communication and treatment of citizens and contracting parties from the General Administrative Law Act apply in full.