Owners: Selling a Rented Property
Are you the owner of a property in Luxembourg and considering selling it while it is currently rented out? This type of transaction is entirely possible, but it comes with specific legal obligations. The law protects the tenant’s rights to ensure a respectful transition for both parties. Here are the key points you need to know when selling a property occupied by a tenant.
The Lease Agreement Remains Valid After the Sale
Selling a rented property does not automatically terminate the lease. The new owner is required to honor the existing lease, taking over all rights and obligations until the end of the contract. It is therefore perfectly legal to sell a property “with tenant in place,” which can even be an advantage for an investor seeking immediate rental income.
However, if your goal is to sell the property vacant (for instance, to a buyer who intends to live there), you must properly terminate the lease. This involves giving the tenant six months’ notice and providing a clear and legally acceptable reason for ending the contract.
Informing the Tenant: Pre-emption Rights Must Be Respected
In Luxembourg, under certain conditions, tenants have a right of pre-emption. This means that before selling the property to a third party, you must first offer it to the tenant at the same price and under the same terms. This offer must be made by registered mail with acknowledgment of receipt and must include the full sale proposal.
Selling a property with a tenant in place is common in Luxembourg but subject to legal regulations. By respecting the tenant’s right of pre-emption, maintaining the existing lease, and observing proper notice periods, you ensure a smooth and secure transaction.
