Right of purchase from the neigbourhg of the land of the neigoburgt after the sold of it for properties on rural land in the Balearic Islands.
(Balearic Islands’ Supreme Court Ruling // Agricultural Law 3/2019 of January, 31st)
The Balearic Agriculture Law 3/2019 from 31 January provides for a right of repurchase that is likely to have a great impact on the dynamics of real estate transactions:
Article 109 of the above-mentioned law states:
- The Island Councils shall encourage the concentration of farms in order to promote the conservation and better use of farms and to increase their profitability.
- In the case of sales of rural land with an area of less than one hectare or less than the minimum cultivation unit, the owners of the adjoining land shall have a right of repurchase. If two or more adjacent farms wish to exercise the right of a right of repurchase at the same time, preference shall be given to the owner of the smaller adjacent plot, and if both are of equal size, to the one who first wished to exercise the right of repurchase.
- According to Article 27 of Law 19/1995 of 4 July on the Modernisation of agricultural farms and under the conditions laid down therein, the owners of adjacent land who are holders of preferential farms have a right of repurchase in the sale of a rural plot of land with an area of less than twice the minimum cultivation unit.
We point out that the Balearic Islands Agricultural Law provides for two rights of repurchase: one for owners of farms located on neighbouring land and considered as priority farms, and the one regulated in paragraph 2.
Therefore, we consider it absolutely necessary to check any repurchase rights that may exist before any real estate transaction of rural land in the Balearic Islands.
For more information this post in Spanish.