Contracts
The right of first refusal gives the holder the right to:
APurchase the property at any time at their preferred price
BMatch any bona fide offer the owner receives before the owner may sell to another✓ Correct
CLease the property for a fixed term
DVeto any offer the seller receives
Explanation
A right of first refusal (preemptive right) gives the holder the right to purchase the property at the same price and terms offered by a third party before the owner may sell to that third party.
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Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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