New proposals for simplifying the rules on mandatory tenders

On 15 May 2023, a broad majority in the Danish Parliament adopted a political agreement on construction and housing policy initiatives. The adoption of the agreement led to the establishment of the Committee on the Mandatory Offer in the spring of 2024, which aimed to analyze how to ensure a less bureaucratic and costly mandatory offer. The Committee has now submitted its report.

The committee submitted its report to the Ministry of Social Affairs and Housing on 12 August 2025, and the report makes it clear that the obligation to offer housing is only used in very few cases and that the number of new cooperative housing associations has stagnated. Therefore, the report also contains a number of specific recommendations for improving and simplifying the scheme.

Briefly about the current rules on mandatory tenders

The rules on the landlord’s obligation to offer are set out in Chapter 24 of the Tenancy Act and include sections 196 – 201 of the Act.

According to section 196(1) of the Danish Tenancy Act, the landlord of properties that are used wholly or partly for residential purposes must offer the tenants the opportunity to take over the property on a cooperative basis before the property is transferred to another party. The obligation to make an offer applies to properties that are used exclusively for residential purposes and that contain at least six residential apartments. Properties with at least 13 residential apartments are also subject to the rules on the obligation to make an offer, even if they are not used exclusively for residential purposes.

According to section 198(1) of the Danish Tenancy Act, the obligation to make an offer is activated when part or all of the property is transferred by sale, gift, merger, division or change of ownership. The obligation to make an offer is also activated when shares in a capital company that owns the property are transferred, when a majority of votes in the company are transferred, or when the transferee obtains a majority of votes upon the transfer.

According to section 199(1) of the Tenancy Act, the obligation to make an offer is fulfilled by the landlord making an offer that a cooperative housing association formed by the residents can acquire the property for the same purchase price, the same cash payment and on the same other terms as the owner can obtain by selling to another party. It is the landlord’s responsibility to document that both the presentation of the offer and its content are in accordance with the rules of the Tenancy Act.

According to section 200 of the Tenancy Act, a number of transfer documents must be registered in connection with the obligation to make an offer, and according to section 201 of the Tenancy Act, the rules on the obligation to make an offer cannot be deviated from to the detriment of the tenant by agreement. 

The committee’s suggestions for improvements

Regarding the scope of the obligation to offer, cf. section 196 of the Tenancy Act, the Committee on the obligation to offer has proposed:

• a standardization of the number of residential apartments, which results in the obligation to offer being triggered, 

• a change in the rules regarding whether the obligation to offer is triggered by de-matriculation and subdivision and
• a change in the rules for what happens when renting before a building permit has been obtained.

Regarding the activation of the obligation to offer, cf. section 198 of the Tenancy Act, the Committee on the obligation to offer has proposed:

• a change to the rules on mandatory bids, so that sales of shares other than shares in capital companies can also trigger mandatory bids,
• a change in when successive transfers of company shares trigger an obligation to make a bid,
• a change in the rules on the obligation to make an offer when selling shares/units in a holding structure, and
• an expansion of the exemption provisions.

With regard to the fulfillment of the obligation to offer, cf. section 199 of the Tenancy Act, the Committee on the Obligation to Offer has proposed:

• a clarification that the offer must be made to tenants and not sub-tenants,
• an introduction of a two-stage model for the acceptance period,
• a model for faster implementation of views and assessments by the courts,
• a change in the rules for inspection and appraisal upon transfer of a property company that solely owns the property subject to the offer,
• implementation of a minimum list of information that the landlord must provide to the tenant in connection with the obligation to offer, and
• an opportunity to offer the property to tenants without the tenant having a current offer from a third party.

In addition, the Committee on the Obligation to Offer has proposed the introduction of a new legal basis that concerns the legal effect of a landlord not implementing the obligation to offer.

Do you want to know more?

At Andersen Partners, we closely follow the development of the rules on mandatory offers, and our specialists are always ready to answer your questions and advise you on all legal aspects of real estate.