cdclosing day ready

reference

glossary.

25 terms

Right of First Refusal

definition

A contractual right that gives a party the opportunity to purchase a property before the owner can sell it to a third party. The holder of this right must be notified of any sale offer and given the chance to match the terms. This right is commonly found in tenant agreements, partnership deals, and family property arrangements.

examples

  • —The tenant exercised their right of first refusal when the landlord decided to sell the building.
  • —Under the partnership agreement, each partner had a right of first refusal if another partner wanted to sell their share.
  • —The homeowner's association held a right of first refusal on all property sales within the community.