Purchase
DE EN BKS
Menü
Land register

Right of first refusal when buying property: right in rem, sale case and period

How the right of first refusal affects a property purchase: right of first refusal in rem and contractual, the sale case and the thirty-day redemption period.

BRANDAUER Rechtsanwälte
Your law firm

BRANDAUER Rechtsanwälte

Salzburg law firm for real estate, property and corporate law

Every matter is handled by a coordinated team of lawyers, legal staff and specialists. In property purchase matters we look at the contract, land register, escrow and tax consequences together.

Call directly +43 662 6280000 WhatsApp Send email Book initial consultation (72 euros)
22 June 2026 · Mag. Bernhard Brandauer, Rechtsanwalt

A right of first refusal can thwart the planned purchase of a property at the last moment. It gives a beneficiary the right to acquire a property with priority as soon as the owner wants to sell it to a third party. Whoever buys a property on which such a right rests should therefore know precisely what they are dealing with.

Austrian law distinguishes the right of first refusal that works only between the parties from the right of first refusal in rem, which is registered in the land register and works against every later acquirer. This distinction decides whether the buyer may keep the property despite the right or can lose it again.

This post explains from a lawyer perspective how the right of first refusal works, when the sale case occurs and which period applies for the redemption. This way you recognise whether a right of first refusal endangers your purchase and what you have to look out for.

Classify the right of first refusal

How does the right of first refusal affect your purchase?

Answer one or two questions on your role and on the registration. You receive an initial classification.

Already know you want to get in touch? Go straight to the enquiry form.

01 Question 1

In which role do you stand to the right of first refusal?

The right of first refusal affects buyers and beneficiaries differently. First clarify your role.

All paths at a glance

Overview of all answers.

01

A registered right of first refusal works against you as buyer.

If the right of first refusal is registered in the land register, it works against every acquirer and thus also against you. The beneficiary can redeem the property on the conditions that you agreed with the seller. Before the purchase, clarify whether the sale case was properly offered to the beneficiary and whether the redemption period is observed. Otherwise you risk losing the property again.

Have the registered right of first refusal checked before the purchase.

02

An unregistered right of first refusal in principle binds only the contracting parties.

If the right of first refusal rests only on an agreement and is not registered in the land register, it works in principle only between the original parties. It does not, as a rule, bind the buyer in rem. The seller can, however, become liable in damages to the beneficiary if he disregards the right. Nevertheless clarify whether risks for your acquisition arise from the agreement.

Have the agreement and possible claims checked.

03

As beneficiary you have to redeem the right of first refusal in time.

If you hold a right of first refusal and the owner wants to sell to a third party, the sale case occurs. You then have to actually redeem the property, that is declare in time that you step into the conditions of the third-party buyer, and offer the performance owed. For immovable things the redemption period is thirty days from the offer. Do not let the period expire, otherwise your right lapses.

Have the redemption and the period checked quickly.

What the right of first refusal is

The right of first refusal obliges the owner of a thing to offer it to the beneficiary for purchase first when he wants to sell it. The Austrian Civil Code regulates this right in detail. The owner therefore may not simply sell the property to a third party without giving the beneficiary precedence.

The right is triggered by the so-called sale case. It occurs as soon as the obligated party wants to sell the property to a third party. He then has to communicate to the beneficiary the conditions of the intended transaction so that the latter can decide whether to redeem. On redemption the beneficiary steps into the conditions that were negotiated with the third party.

The right of first refusal is in principle a personal right. As a rule it cannot be transferred to others or inherited. For immovable things, however, it can be given effect in rem by registration in the land register, with which it develops a much stronger effect.

Right of first refusal in rem and contractual

Whether a right of first refusal is registered in the land register makes the decisive difference. If it is not registered, it works only between the original parties. If the owner sells to a third party nevertheless, the beneficiary can claim damages, but the buyer as a rule acquires the property effectively. The right does not bind him.

If, by contrast, the right of first refusal is registered in the land register, it works against every later acquirer. The buyer has to accept it against himself. If the sale case is triggered and the beneficiary redeems in time, the buyer can lose the property again. For this reason a registered right of first refusal is by far the greater risk for the buyer.

For the buyer a clear rule follows from this. Read the encumbrance sheet precisely and check whether a right of first refusal is registered. How to understand the entries is shown in our post on how to read the land register extract. If a right is registered, clarify before the purchase whether the sale case was properly handled.

The forms compared

Right of first refusal in rem and contractual

Both forms oblige the owner but work towards the buyer in quite different ways.

Comparison of right of first refusal in rem and contractual right of first refusal when buying property
Form Registration Effect against the buyer
In rem Registered in the land register Works against every acquirer Buyer can lose the property again
Contractual Only agreement, not registered Works only between the parties Buyer as a rule acquires effectively
No right of first refusal No registration, no agreement No priority position of a third party Buyer acquires unhindered

What is decisive is the registration. Only the right of first refusal in rem endangers the buyer’s acquisition.

Caution with the right of first refusal: If a right of first refusal is registered in the land register, you can lose the property again despite the purchase contract if the beneficiary redeems. Check the encumbrance sheet before the purchase and clarify the sale case. Booking an initial consultation (72 euro) helps to assess the risk correctly.

Sale case and redemption period

When the sale case occurs, the obligated party has to communicate to the beneficiary all essential conditions of the intended transaction, that is above all object, price, payment terms and ancillary agreements. Only with this complete communication does the period for redemption begin to run, because only in this way can the beneficiary make his decision.

A clear period applies for the redemption. For movable things the beneficiary has to redeem within twenty-four hours, for immovable things such as properties within thirty days after the offer. If he lets this period expire, the right of first refusal lapses. The redemption requires more than a mere declaration. The beneficiary has to actually offer or secure the performance owed.

For the buyer this period is doubly important. As long as it runs, his acquisition is in suspense. Only when the beneficiary does not redeem in time is the purchase definitively settled. Therefore clarify before the purchase price payment whether the sale case was cleanly handled. Related risks from the land register are dealt with in our post on easements and rights of way when buying.

Frequent questions

Right of first refusal when buying.

What is a right of first refusal? +

A right of first refusal obliges the owner to offer the property to the beneficiary for purchase first when he wants to sell it. If he wants to sell to a third party, the sale case occurs and the beneficiary can redeem on the conditions of the third-party transaction.

Can I lose a property despite a right of first refusal? +

With a right of first refusal registered in the land register, that is in rem, yes. It works against every acquirer. If the beneficiary redeems in time, the buyer can lose the property again. A merely agreed right of first refusal, by contrast, as a rule does not bind the buyer.

How long is the redemption period for properties? +

For immovable things such as properties the redemption period is thirty days from the offer of the conditions. For movable things it is only twenty-four hours. If the beneficiary lets the period expire, the right of first refusal lapses.

Going deeper

Further topics around the land register

Land register and encumbrances

Which rights and encumbrances can be registered in the land register.

Reading the land register extract

How to correctly understand the encumbrance sheet and the entries.

Easements and rights of way when buying

Which further rights of third parties can rest on the property.

Encumbrances and land register check

Get an overview of the registered encumbrances.

Topics
Right of first refusalSale caseRedemption periodLand registerRight in rem

Reviewing a contract, arranging escrow, securing handover?

When buying property, the contract and the land register decide. Call us directly or send an email, callback within one business day.

+43 662 6280000 [email protected] Book initial consultation (72 euros)
Contact

A direct line to the firm.

Address

BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg