Contracts
A 'right of first refusal' clause in a real estate contract gives the holder:
AThe exclusive right to purchase the property at any price they choose
BThe right to match any bona fide offer the seller receives before the seller can sell to a third party✓ Correct
CPriority over all other liens on the property
DThe right to lease the property before it is offered for sale
Explanation
A right of first refusal (ROFR) gives the holder the opportunity to purchase the property on the same terms as any third-party offer before the seller accepts that offer. If the ROFR holder declines, the seller may proceed with the third-party sale.
Related California Contracts Questions
- In California, which type of deed gives the MOST protection to the buyer?
- The 'parol evidence rule' states that:
- Under California's Statute of Frauds, which of the following real estate agreements must be in writing to be enforceable?
- What is an 'as-is' sale in California real estate?
- Which of the following would make a contract void (not just voidable)?
- An 'as-is' clause in a purchase agreement means the buyer:
- What is 'consideration' in a real estate contract?
- Which remedy allows a buyer to force a seller to complete the sale as agreed when the seller refuses to close?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →