Can you sell a rented or occupied property?
Yes, you can sell a rented property. Two options: sell it "occupied", with the buyer taking over the current lease (the tenant stays in place), or sell it "vacant" by giving the tenant notice to sell. For an unfurnished rental, this notice constitutes an offer to sell and the tenant has a pre-emption right.
Selling occupied: the lease continues
You can sell a rented home at any time without waiting for the tenant to leave. This is known as an "occupied" sale: the new owner buys the property with the current lease, which they must respect until its end.
This solution is faster because it requires no notice procedure. The property generally sells a little cheaper than a vacant home (a common discount linked to the occupancy), but it appeals to investors seeking a tenant already in place.
Selling vacant: the notice to sell (unfurnished rental)
If you want to sell the home vacant (to an individual who wants to live in it, for example), you must give the tenant notice to sell. For a home rented unfurnished as a main residence, this notice is governed by Article 15 of the Act of 6 July 1989.
The notice to sell must be given for the lease's expiry date, with at least six months' notice before that term. It constitutes an offer to sell for the benefit of the tenant, who has a pre-emption right.
- The notice states the price and conditions of the proposed sale.
- The tenant has two months to accept the offer.
- If they accept, they in principle have two months to sign the deed (four months if they declare they will use a loan).
- If they refuse or do not respond, they must leave the premises at the end of the lease and you can sell to a third party.
- If you then sell to a third party at a more favorable price or conditions, the notary must notify these conditions to the tenant, who then has a new pre-emption right.
Furnished rental and special cases
In a furnished rental as a main residence (governed by Article 25-8 of the Act of 6 July 1989), the rules differ: to not renew the lease, the landlord must give notice at least three months before the term, stating the reason, with the sale being an admitted reason. However, the pre-emption right of Article 15 does not apply to furnished rentals: the tenant of a furnished home does not benefit from this legal pre-emption right. You also remain free to sell the home occupied, without giving notice.
Other situations open up specific pre-emption rights, in particular the first sale of a home after the division or conversion of a building into co-ownership, or certain sales by lots.
Because of the technical nature of these rules and the timelines to respect, it is strongly advised to have the procedure checked by a notary before giving notice: an irregular notice is void and wastes time.
Frequently asked questions
Can the tenant prevent the sale?
No. The tenant cannot oppose the sale. In the case of an occupied sale, they simply keep their lease with the new owner. In the case of notice to sell a vacant home, they have a pre-emption right: they can buy as a priority, but cannot block the sale to a third party if they do not buy.
What notice is required to give notice to sell?
For an unfurnished rental used as a main residence, the notice to sell must be given at least six months before the end of the lease and constitutes an offer to sell. For a furnished rental, the notice must be given at least three months before the term and be justified, but with no tenant pre-emption right. The notice must comply with precise requirements, on pain of nullity.
Does selling occupied lower the price?
Often, yes. A property sold occupied frequently suffers a discount, because the buyer cannot live in it immediately and inherits the current lease. The extent depends on the rent, the remaining lease duration and the tenant's profile. In return, the sale is generally faster.
Read next
- Loi n° 89-462 du 6 juillet 1989, articles 15 et 25-8 (Légifrance)
- Service-Public.fr : vendre un logement loué
- Notaires de France : droit de préemption du locataire
- ANIL : congé pour vente et droits du locataire
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