Escrow & TitleIntermediateDelaware Exam

What is a 'first right of refusal' in a Delaware commercial lease?

AThe tenant's right to refuse the first offer made by any potential buyer
BThe tenant's contractual right to match any purchase offer the owner receives before the owner accepts it from a third partyCorrect
CThe landlord's right to refuse the first tenant's renewal request
DA priority right to lease any additional space that becomes available

Why The tenant's contractual right to match any purchase offer the owner receives before the owner accepts it from a third party Is Correct

Answer B: The tenant's contractual right to match any purchase offer the owner receives before the owner accepts it from a third party

A right of first refusal (ROFR) in a lease gives the tenant the right to purchase the property under the same terms as any third-party offer the landlord is willing to accept, typically triggered before the landlord accepts a third-party offer.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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