Legal Definitions - jus retractus

Jus retractus is a Latin term used in civil law systems to describe a specific right of repurchase or redemption. It generally refers to two distinct situations:

• The right of certain relatives to repurchase immovable property (such as land or a house) that has been sold by another family member. This right allows them to buy back the property, often at the original sale price, to ensure it remains within the family.
• The right of a debtor to redeem a debt that their original creditor has sold to a third party. In this scenario, the debtor can pay the third-party purchaser the price they paid for the debt (not necessarily the full original debt amount) within a specified period, thereby extinguishing the debt.

Here are some examples illustrating how jus retractus might apply:

• Example 1 (Relatives repurchasing property): Imagine a situation where an elderly woman sells her family's ancestral home, which has been passed down through generations, to an unrelated buyer. Her niece, who has always lived nearby and cherishes the family history associated with the house, might invoke jus retractus. This legal right would allow the niece to repurchase the home from the new buyer, typically for the same price the buyer originally paid, thereby keeping the property within the family line.

• Example 2 (Debtor redeeming a sold debt): Consider a small business owner who owes a bank $75,000. The bank, facing financial pressures, decides to sell this outstanding loan to a debt collection agency for a discounted price of $45,000. If jus retractus applies in that jurisdiction, the small business owner could exercise this right. They would pay the debt collection agency $45,000 (the amount the agency paid for the debt) within the legally stipulated timeframe, rather than the original $75,000, to settle their obligation.