The right of pre-emption may be lost in the following cases: (a) by acquiescence or waiver, (b) by death of the pre-emptor, (c) by misjoinder, and (d) by release.
1. By acquiescence or waiver:
Acquiescence takes place when a pre-emptor fails to observe necessary formalities, such as the making of demands. There may be other circumstances from which acquiescence on the part of the pre-emptor may be inferred.
The right of pre-emption is also lost when the pre-emptor enters into a compromise with the buyer, such as when he agrees to cultivate the land (subject-matter of pre-emption) with the vendee. A mere offer by a pre-emptor to purchase from the vendee the property at the sale-price with a view to avoiding litigation, does not amount to acquiescence.
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2. By Death of the pre-emptor:
ADVERTISEMENTS:
If the pre-emptor dies after making both the demands but before the filing of the suit, the right of pre-emption is lost and his legal representative cannot file the suit.
3. By misjoinder:
If a pre-emptor joins himself as a co-plaintiff with a person who is not entitled to claim pre-eruption, then the right is lost and the suit must be dismissed. However, the right will not be lost if he joins with himself as co-plaintiff a person who could have filed a suit for pre-emption, but for the reason that he did not make the two demands.
4. By release:
The right of pre-emption is lost if the pre-emptor releases the property for consideration to be paid to him. However, the right of pre-emption will not be extinguished, if before the completion of the sale, the property was offered to the pre-emptor, but he refused to buy it, since the right of pre-emption accrues only after the completion of the sale. Similarly, the right of pre-emption cannot be defeated even when a pre-emptor has notice of the impending sale previously, but made no offer to the vendor to purchase it.