Right of First Refusal for Tenants on Sale of Property in Maharashtra
Reviewed by the Commoner Law Editorial Team. 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
What is this right?
Under several Indian tenancy laws, a tenant has a statutory right of first refusal if the landlord decides to sell the rented property.
- Model Tenancy Act (MTA), s. 23: If a landlord intends to sell the rented premises, they must first offer it to the tenant at the price they intend to sell to a third party. The tenant has 30 days to accept or decline the offer.
- If the tenant declines (or does not respond in 30 days), the landlord is free to sell to any third party at not less than the offered price.
- If the landlord sells to a third party at a lower price without offering it to the tenant at that price, the tenant can challenge the sale in the Rent Court.
- State laws: Delhi's Rent Control Act provides a similar pre-emption right; some state laws go further, requiring registration of the offer with the Rent Authority.
When does it apply?
- You are a tenant in a property covered by the MTA or a state Rent Control Act.
- Your landlord has informed you they intend to sell the property.
- You discover the property was sold to a third party without your being offered it first.
What to Do If Your Landlord in India Sells Without Offering You First Refusal
- When the landlord makes the offer, respond in writing within 30 days either accepting or requesting more time to arrange financing.
- If you wish to purchase, negotiate and execute a registered sale agreement as you would for any property transaction.
- If the property was sold to a third party in violation of your right of first refusal, file a complaint before the Rent Court — the court can set aside the sale or award compensation.
What should you NOT do?
- Do not delay responding to the landlord's offer — missing the 30-day window extinguishes your right of first refusal for that sale.
- Do not assume this right applies automatically without checking whether your state has adopted the MTA or has its own provision.
- Do not conflate the right of first refusal with a right to purchase at any price you choose — you must match the offered price.
How Maharashtra differs from central law
In Maharashtra, tenants of rent-controlled premises have certain rights when the landlord wishes to sell the property. Under the Maharashtra Rent Control Act, 1999 (Section 56), when a landlord of premises in an area to which the Act applies proposes to sell the premises, the tenant in occupation has a right of first refusal at the price at which the landlord proposes to sell.
The landlord must give written notice to the tenant of the proposed sale and the price. The tenant has 30 days to exercise the right. If the tenant does not respond or declines, the landlord may sell to a third party, but the new owner takes the property subject to the existing tenancy. In cooperative housing societies, members also have specific rights under the Maharashtra Cooperative Societies Act, 1960 when shares or flats are transferred.
Additional Steps in Maharashtra
If you are a tenant and receive a notice about the sale of your premises, respond in writing within 30 days. If you wish to purchase, arrange financing and communicate your acceptance formally. If you believe your right has been violated, file a suit in the civil court or approach the Rent Controller. For cooperative society transfer disputes, approach the Cooperative Court or the Registrar of Cooperative Societies.
Relevant Law: Maharashtra Rent Control Act, 1999, Section 56; Maharashtra Cooperative Societies Act, 1960, Section 29
Common Questions
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.Your landlord has informed you they intend to sell the property.You discover the property was sold to a third party without your being offered it first.
What should I do if my landlord in India sold the property without offering it to me first?
When the landlord makes the offer, respond in writing within 30 days either accepting or requesting more time to arrange financing.If you wish to purchase, negotiate and execute a registered sale agreement as you would for any property transaction.If the property was sold to a third party in violation of your right of first refusal, file a complaint before the Rent Court — the court can set aside the sale or award compensation.
What mistakes should I avoid with right of first refusal for tenants on sale of property?
Do not delay responding to the landlord's offer — missing the 30-day window extinguishes your right of first refusal for that sale.Do not assume this right applies automatically without checking whether your state has adopted the MTA or has its own provision.Do not conflate the right of first refusal with a right to purchase at any price you choose — you must match the offered price.
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