Property OwnershipIntermediateAlaska Exam

An Alaska property owner who grants a 'right of first refusal' to a neighbor is giving the neighbor:

AAn option to purchase the property at any time, as is typically expected in this situation
BThe right to match any bona fide offer the owner receives before selling to another partyCorrect
CAn easement to access the property
DA license to use the property temporarily

Why The right to match any bona fide offer the owner receives before selling to another party Is Correct

Answer B: The right to match any bona fide offer the owner receives before selling to another party

A right of first refusal gives the holder the right to purchase the property on the same terms as any bona fide offer received from a third party before the owner accepts that offer. It is not a pure option — the holder can only exercise the right if the owner actually decides to sell.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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