Decree Law 6/2020, of 5 of June, of the Council, for the expansion of public housing in the Valencian Community through the rights of first refusal and retraction.
This Decree Law deals with the preferential acquisition rights both on Officially Protected Housing (“VPO”) as Free Housing:
PROTECTED HOUSING:
Right of first refusal and retraction in the second and subsequent inter vivos transmissions of public housing and its annexes, both free and expensive, and are voluntary or derived from a procedure of patrimonial execution or extrajudicial patrimonial realization, throughout the period in which the rating is maintained:
If they are privately promoted, when the final qualification is later than 21 April 2005 (entry into force of the Housing Law); Y
If they are publicly promoted, during the entire term of its protection regime provided that these rights were established in said regime (although the final qualification is prior to 21 April 2005).
FREE HOUSING (first and subsequent transmissions):
Right of first refusal and retraction in the transmissions of houses that had been acquired by means of dation in payment of debt with mortgage guarantee.
Right of withdrawal in the transmission of homes that have been acquired in a judicial process of foreclosure or in a procedure of extrajudicial sale in a notary office.
Right of first refusal and withdrawal in the following purchase and sale operations:
– In the transmissions of buildings with a minimum of five dwellings, whose main destination is residential, when a percentage equal to or greater than eighty percent of said building is transmitted.
– In sales operations referring to ten or more homes, even when said operation is carried out through the sale of shares or social participations of companies whose corporate purpose is linked to the real estate activity.
Additional requirements in the case of singular transmissions (Free Housing):
Housing must be located in areas of need for housing declared by the Generalitat. The Decree Law provides for the development of a catalog of areas of need for housing within six months. Until that moment, the preferential acquisition rights will be applied in the areas established in the annexes of the Decree Law, which include the three provincial capitals (Castellón, Valencia and Alicante), with its metropolitan areas, as well as the main municipalities of the Valencian Community (the list of affected municipalities can be found in the document of the Decree Law 6/2020).
The home or building must have been acquired by the transferor after the entry into force of the Housing Law, this is, after the 21 April 2005.
The trial and withdrawal of the Decree Law is subsidiary with respect to other preferential acquisition rights of a legal nature. The preferential acquisition right of the Valencian public administration in the cases of free housing yields in favor of the preferential acquisition rights of a legal nature (for example, the recognized community or tenants), unless its beneficiaries do not exercise it.
PROCEDURE FOR THE EXERCISE OF TRACKING:
Deadline to exercise it: 60 calendar days from notification.
After the period of 60 days without notification of the will to exercise the right (the before, if the Generalitat notifies the waiver of the right): 6 months to transfer the property in the same conditions.
If the transmission is made after said period, the notification is considered not made and the administration may exercise the right of withdrawal.
PROCEDURE FOR THE EXERCISE OF THE RETRACT:
Assumptions:
When the notification required for trial purposes has not been practiced or if the established requirements are omitted in the notification.
When, despite the fact that the administration has chosen to exercise the trial and error, transmission to a third party is carried out.
When the transmission has been made having expired the effects of the notification for the right of first refusal.
When the transmission has been carried out under conditions other than those included in the notification.
In cases of transfer derived from a procedure of patrimonial execution or extrajudicial sale.
Deadline for communication of the transmission to the Ministry responsible for housing: 15 calendar days from transmission
Term for the exercise of the retraction: 60 calendar days from notification:
Exercise of law: in case the retraction is exercised by the administration, the transferor will be notified and the price will be paid within the 4 months, unless a higher payment term has been established in the transmission that gives rise to the retraction
No exercise of the retraction: if the expected period elapses without exercising the right, is understood to be waived by the administration.
Finally, facing the client and in relation to the evolution of active operations, We are currently working with the different companies that own the guidelines to follow and, as soon as we have them defined, we will put them to your knowledge.