The French Connection: A Culinary Clash Over Real Estate Rights

In the heart of a thriving metropolis, where fortunes were made and futures were forged, there lived a sagacious landlord named Mrs. Huang. He was the custodian of a coveted collection of properties, each a brick-and-mortar tapestry woven with the aspirations and endeavors of its tenants.

As the seasons turned, Mrs. Huang felt the familiar itch of ambition, the siren call to cast off familiar shores and seek out new ventures. Amidst this backdrop of entrepreneurial wanderlust, he decided to unfurl the ‘For Sale’ banner across his real estate empire.

No sooner had the news rippled through the urban jungle than a lucrative offer landed at his feet. A prospective buyer, with pockets as deep as an ancient well, presented a princely sum of 20 million yuan, a full bounty to be delivered in one grand gesture.

But within the walls of one particularly enchanting property, a French restaurant bloomed under the tender care of its proprietor, Francesco. His bistro was an ode to Parisian chic, a corner of France where the aroma of coq au vin mingled with the lilting tunes of an accordion. Francesco’s heart was woven into the tapestry of this place, with every franc spent on its elegant décor reflecting the essence of the Left Bank.

Upon hearing Mrs. Huang’s intentions, Francesco’s world teetered like a soufflé in a slamming oven door. With a mixture of despair and determination, he approached Mrs. Huang, offering a sum of 10 million yuan upfront and the promise of the remaining 10 million within the span of a year.

More than just an offer, Francesco laid his ace on the table—the right of first refusal. This was his culinary kingdom, and he clung to the legal threads that might allow him to bind the property to him, as surely as a signature on a menu.

Mrs. Huang found himself entwined in a conundrum, a delicate balance between the allure of immediate wealth and the steadfast conviction of a tenant who had infused his property with the soul of France. The right of first refusal was indeed a potent force, one that mandated Mrs. Huang to consider Francesco’s offer with all the seriousness of a vintage wine tasting.

The air was thick with tension, as Mrs. Huang weighed his gilded dreams against Francesco’s passionate plea. A decision loomed on the horizon, promising to reshape their fates in ways neither could have imagined.

 

Law In A Minute

Mrs. Huang is obligated to notify Francesco of his intention to sell the property within a reasonable period before the sale is finalized. This notification is not merely a courtesy; it is a legal requirement that enables Francesco to exercise his right of first refusal.

Francesco’s right of first refusal is a pre-emptive privilege that allows him to match the offer made by the prospective buyer, thereby giving him the opportunity to purchase the property on the same terms as those offered by the third party. This right is contingent on the tenant being notified and is inapplicable in situations where a co-owner exercises their right of first refusal or the landlord opts to sell the property to a close relative.

Should Francesco wish to assert his right, he must clearly communicate his intention to purchase the property within fifteen days of receiving notice from Mrs. Huang and match the purchase terms exactly, including the price and method of payment. Given that the Francesco’s proposed payment method is less favorable than that of the new buyer, it does not preclude Mrs. Huang from proceeding with the sale of the property.

 

Legal Basis

Civil Code

Article 726

The landlord must notify the tenant within a reasonable period before selling the leased property, and the tenant has the right of first refusal to purchase the property under the same conditions. However, this does not apply if a co-owner of the property exercises their right of first refusal or if the landlord sells the property to a close relative.

If the landlord fulfills the duty to notify and the tenant does not express their intention to purchase within fifteen days, it is considered that the tenant has waived their right of first refusal.

Article 728

If the landlord fails to notify the tenant, or there are other circumstances that hinder the tenant’s exercise of the right of first refusal, the tenant may demand compensation from the landlord. However, the validity of the property sales contract between the landlord and a third party is not affected by this failure to notify.