Right of First Refusal in Real Estate: When, to Whom, and How Must Property Be Offered?

When selling real estate—particularly co-owned property or agricultural land—one legal concept often comes into play: the Right of First Refusal (ROFR). This right can significantly affect how a property sale proceeds, so it’s essential for both buyers and sellers to understand it.

In this blog, we explain what the right of first refusal entails, how it works in Serbia, and why it’s important to recognize its legal implications.

What Is the Right of First Refusal?

The right of first refusal gives certain individuals the legal priority to purchase a property before it can be sold to others. Under Serbian law, if you’re selling property subject to this right, you are required to first offer it to the entitled party under the same terms you would offer to a third party.

❗ When is the ROFR legally required in Serbia?

  • When selling a co-ownership share in a property,
  • When selling agricultural land.

These rules are intended to protect the interests of co-owners, neighbors, or tenants and ensure a fair and orderly process.

📌 If you’re selling a co-owned share or farmland in Serbia, the law requires you to offer it first to those with a right of first refusal—on equal terms.

How Does the ROFR Work for Co-owners?

If you are selling your share in a co-owned property, Serbian law requires you to notify the other co-owners in writing, offering them the share under the same conditions you would offer a third-party buyer.

🔑 What if multiple co-owners are interested?

  • The co-owner with the largest share has priority.
  • If all co-owners have equal shares, the seller is free to choose whom to sell to.

🧩 This process is specific to Serbia—in many jurisdictions, the ROFR for co-owners must be explicitly stated in a contract, whereas in Serbia, it is imposed by law.

How Does the ROFR Apply to Agricultural Land?

The process is similar but applies to a wider group of individuals:

  1. First, the land must be offered to co-owners,
  2. If they decline, it must then be offered to adjacent landowners.

🏞️ How is priority determined among neighboring landowners?

  • The neighbor whose land borders the property most extensively has priority.
  • If two or more neighbors have the same border length, priority goes to the one who owns the larger adjacent parcel.

How Should the Offer Be Delivered?

The offer must be submitted in writing and sent via registered mail. It must include:

  • Accurate property details (parcel number, location, size),
  • The price and sale conditions.

📬 The recipient has 15 days* from the receipt of the offer** to respond. If they fail to respond within that time, the seller is free to sell the property to another buyer—under the same terms.*

⏳ The 15-day window is legally binding—after it expires, the seller can proceed with a third party.

What Happens if the ROFR Is Ignored?

If the seller fails to honor the ROFR, or sells the property under better conditions to someone else, the entitled person can:

  • File a lawsuit,
  • Request that the court nullify the sale,
  • Obtain a ruling requiring the seller to complete the sale under the original terms in favor of the ROFR holder.

⚖️ Violating the ROFR can result in litigation and the annulment of the sale contract.

Why Is the Right of First Refusal So Important?

Understanding the ROFR protects all parties involved:

For Sellers:

  • Ensures compliance with the law and avoids legal disputes.

For Buyers:

  • Guarantees the purchase won’t be challenged later due to a breach of rights.

For Tenants or Adjacent Landowners:

  • Provides security and priority access if land or property is up for sale.

🎯 Real-World Example:

Ana wants to sell her co-ownership share in an apartment she shares with Petar and Milena. Under Serbian law, Ana must offer her share to both Petar and Milena under the same terms she’d offer any external buyer.

  • Petar, as the co-owner with a larger share, has priority.
  • If Petar declines, Milena can accept the offer.
  • If both refuse, Ana is free to sell to a third party—but only under the same terms she offered them.

Conclusion: Consult Real Estate Professionals 🏠💼

The right of first refusal may seem complex, but with the support of experienced legal and real estate professionals, the process can be straightforward and fully transparent.

✅ Whether you’re buying, selling, or leasing property, expert guidance helps you save time, avoid costly mistakes, and ensure legal compliance.

🤝 Have questions about real estate transactions in Serbia? Reach out—we’re here to help!

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