What is preemptive right in SAP RE - Real Estate Management?

SAP Term: preemptive right

• Component: RE

• Component Name: Real Estate Management

• Description: Option of the landlord in relation to rentals that require payment of sales tax. Applies mainly to German law. The landlord and tenant can agree that the tenant pays sales tax in addition to the normal rent. The prerequisite for this is that the tenant is a business and that the landlaord opts. This means that the landlord has chosen to bill the commercial tenant separately for sales tax. The tenant is required to pay sales tax even if he or she is not eligible for deducting input tax.

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• Key Concepts: 
  Preemptive right is a feature of SAP Real Estate Management (RE-FX) that allows a tenant to purchase a property before it is offered to the public. This right is granted to tenants who have been in the property for a certain period of time and have fulfilled certain conditions. The tenant can exercise this right by submitting an offer to the landlord. 
  
  How to use it: 
  In order to use the preemptive right feature, the tenant must first meet the conditions set by the landlord. These conditions may include length of tenancy, payment of rent, and other requirements. Once these conditions are met, the tenant can submit an offer to purchase the property before it is offered to the public. 
  
  Tips & Tricks: 
  It is important for tenants to be aware of their preemptive rights and to understand how they can exercise them. Tenants should also be aware of any deadlines or restrictions that may apply when exercising their preemptive rights. 
  
  Related Information: 
  The preemptive right feature is part of SAP Real Estate Management (RE-FX). For more information on RE-FX, please visit SAP's website at https://www.sap.com/products/real-estate-management.html.