Delhi Right of First Refusal for Tenants on Sale of Property Laws (2026)

Researched by Ahmed R. J. Alsaedi, Founder & Head Researcher

Primary sources cited; not legal advice.

Source: Model Tenancy Act, 2021, s. 23; some state Rent Control Acts (e.g., Delhi Rent Control Act 1958, s. 54A)

About this article

Sourced from Indian central (Union) law — Constitution of India, central Acts of Parliament, and Supreme Court decisions. State-level information reflects each state's own Acts and High Court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards

Indian Central Law

What is this right?

Model Tenancy Act, s. 23: if the landlord intends to sell, they must first offer the property to you at the price they intend to take from a third party. You then have 30 days to accept or decline.
If you decline (or stay silent past 30 days), the landlord is free to sell to anyone — but not at a lower price than was offered to you.
If the landlord sells to a third party at a price lower than what was offered to you — without coming back to you at the new price — you can challenge the sale in the Rent Court.
State laws: Delhi's Rent ControlA local law that caps how much a landlord can raise rent each year on covered units. Rent control exists in a limited number of US cities and states and usually applies only to older buildings. Act has a similar pre-emption right under s. 54A. Some state laws go further still, requiring the offer to be registered with the Rent Authority — that registration creates a paper trail nobody can later deny.

When does it apply?

You are a tenant in a property covered by the MTA or a state Rent ControlA local law that caps how much a landlord can raise rent each year on covered units. Rent control exists in a limited number of US cities and states and usually applies only to older buildings. Act with a pre-emption clause.
Your landlord has told you they intend to sell.
You have just discovered the property was sold to a third party without ever being offered to you.

What to Do If Your Landlord in India Sells Without Offering You First Refusal

When the offer comes, respond in writing within 30 days — either accept the price, or ask for a short extension to arrange financing. Bank pre-approvals take longer than 30 days; start the loan conversation the day the offer arrives.
If you decide to buy, negotiate and execute a registered sale agreement the same way you would for any property transaction. Stamp duty, registration, due diligence — none of it skips.
If the property was sold to a third party in breach of your first-refusal right, file a complaint before the Rent Court. The court can set the sale aside or order compensation in lieu.

What should you NOT do?

Do not let the 30 days slide. Missing the window extinguishes your right of first refusal for that particular sale — you do not get a second chance.
Do not assume the right applies everywhere. Check whether your state has adopted the MTA or has a comparable provision in its own Rent ControlA local law that caps how much a landlord can raise rent each year on covered units. Rent control exists in a limited number of US cities and states and usually applies only to older buildings. Act before you build a strategy on it.
Do not confuse first refusal with a right to set the price. You have to match what the third-party buyer was willing to pay — not negotiate downward.

Delhi Law

Choose your state

India National Maharashtra Uttar Pradesh Tamil Nadu Karnataka West Bengal Delhi Kerala Gujarat

How Delhi differs from central law

The right of first refusal for tenants in Delhi operates primarily under the Delhi Rent ControlA local law that caps how much a landlord can raise rent each year on covered units. Rent control exists in a limited number of US cities and states and usually applies only to older buildings. Act, 1958 and general contract law principles.

Under the Delhi Rent ControlA local law that caps how much a landlord can raise rent each year on covered units. Rent control exists in a limited number of US cities and states and usually applies only to older buildings. Act, a tenant in lawful possession has strong security of tenure, which effectively gives them a practical advantage if the property is sold — the new owner inherits the tenancy and cannot evict the tenant except on statutory grounds under Section 14.
There is no express statutory right of first refusal for tenants in Delhi, but the Transfer of Property Act, s. 108(j) provides that a lease is not terminated merely by the transfer of the landlord's interest — the new buyer takes the property subject to the existing tenancy.
For DDA flats, DDA's own regulations restrict transfer and resale, and sitting allottees may have preferential rights under DDA policy when flats are converted from leasehold to freehold.
In cooperative group housing societies in Delhi, the society's bylaws often grant existing members or the society a right of first refusal before a flat can be sold to an outsider.

Additional Steps in Delhi

Check your lease agreement for any first-refusal clause. For DDA properties, consult the DDA office at Vikas Sadan regarding transfer and freehold conversion policies. For cooperative society properties, review the society bylaws and consult the Registrar of Cooperative Societies (Delhi).

Relevant Law: Delhi Rent Control Act, 1958; Transfer of Property Act, 1882, s. 108; DDA (Disposal of Developed Nazul Land) Rules; Delhi Cooperative Societies Act, 2003

Common Questions

What is the right of first refusal for tenants on sale of property right in India?

If you have been renting a flat for years and the landlord decides to sell, several Indian tenancy laws give you the first crack at buying it. This is the right of first refusal, and it exists to prevent long-term tenants from being evicted simply so the property can be flipped to a stranger.Model Tenancy Act, s. 23: if the landlord intends to sell, they must first offer the property to you at the price they intend to take from a third party. You then have 30 days to accept or decline.If you decline (or stay silent past 30 days), the landlord is free to sell to anyone — but not at a lower pric...

When does right of first refusal for tenants on sale of property apply?

You are a tenant in a property covered by the MTA or a state Rent Control Act with a pre-emption clause.Your landlord has told you they intend to sell.You have just discovered the property was sold to a third party without ever being offered to you.

What should I do if my landlord in India sold the property without offering it to me first?

When the offer comes, respond in writing within 30 days — either accept the price, or ask for a short extension to arrange financing. Bank pre-approvals take longer than 30 days; start the loan conversation the day the offer arrives.If you decide to buy, negotiate and execute a registered sale agreement the same way you would for any property transaction. Stamp duty, registration, due diligence — none of it skips.If the property was sold to a third party in breach of your first-refusal right, file a complaint before the Rent Court. The court can set the sale aside or order compensation in lieu...

What mistakes should I avoid with right of first refusal for tenants on sale of property?

Do not let the 30 days slide. Missing the window extinguishes your right of first refusal for that particular sale — you do not get a second chance.Do not assume the right applies everywhere. Check whether your state has adopted the MTA or has a comparable provision in its own Rent Control Act before you build a strategy on it.Do not confuse first refusal with a right to set the price. You have to match what the third-party buyer was willing to pay — not negotiate downward.

Right of First Refusal for Tenants on Sale of Property in other states

Same topic, different jurisdiction. Pick the one that applies to you.

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Every reference below links to its primary source — the statute book, regulator, or court — and carries a verification date. See our citation methodology for how this works.

Delhi

StatuteDelhi Cooperative Societies Act, 2003
StatuteTransfer of Property Act, 1882, s.108 (lessor/lessee rights)
Agency guidanceDelhi Development Authority — leasehold to freehold conversion policy

India

StatuteModel Tenancy Act, 2021, s. 23
Statutory right of first refusal: tenant has 30 days to match the offered price before sale to a third party.
StatuteTransfer of Property Act, 1882
General contractual framework for sale and lease of immovable property; basis for pre-emption clauses.
Agency guidanceMinistry of Housing & Urban Affairs — Model Tenancy Act
Lists state adoption status; confirms availability of right of first refusal in adopting states.
StatuteRegistration Act, 1908
Public registry of sale deeds enables tenants to verify whether sale was made at the offered price.