Pre-Emption, Back-In And Redemption Rights As Well As The Right Of Priority In Acquisition Of Real Estate

Abstract

Among factors that might significantly diversify common and economic trading, in particular trading in real estate, pre-emption, back-in and redemption rights, as well as the right of priority in acquisition play an important role. These legal instruments, despite certain differences in their legal structures, serve a similar function. Namely, they may be utilized for the purpose of affecting the preferred ownership structure. The legislator in pursuit of the assumed ownership structure may – through the instruments of the pre-emption right, back–in right, redemption right and the right of priority in acquisition – particularly with their statutory character - restrict freedom to trade in ownership with regard to the selection of the real estate purchaser. Simultaneously, in the contracting process, the parties face a certain manner of proceeding imposed, the purpose of which is to conclude the contract on transferring real estate ownership with the partner preferred by the legislator. In certain cases, the legislator goes even further, granting the eligible party a claim under which the eligible party may demand that the party obliged shall submit an appropriate declaration of will, and in the event that the party obliged refuses – the eligible party may seek the judgment of the court replacing that declaration. Proper navigation in the field of real estate trading, in particular with regard to transactions in which the pre-emption right, back-in right, and redemption right, or the right of priority in acquisition is reserved for defined entities, requires defining the legal character of the given instrument, the manner of executing the due right by the eligible party, results of the failure of the parties to the contracting process to fulfill the obligations imposed by the act, and finally, defining whether there are means for the compulsory execution of the power guaranteed by the act and, if yes, what these means are.

Legal and Socio-Economic Conditions Underlying the Shaping of the Agricultural System in Poland

“…As confirmed by Dega ńska [38], the right of pre-emptive and the right of priority in the purchase of agricultural immovable properties impose certain limits on the free trade in the property as for the choice of a buyer. On the other hand, these measures are expected to prevent speculative trade of agricultural land [36], and above all, exclude persons not engaged in farming as potential buyers.…”

“…Relatively less attention is paid to other important tasks performed by state agencies. Legal instruments here include the right of pre-emptive and the right of priority in the acquisition of agricultural real estate, which may considerably influence the trade in real estate, particularly in the shaping of the preferred ownership structure [38].…”