ContractsIntermediateDelaware Exam

What is a 'right of first refusal' in a Delaware real estate contract?

AThe buyer's right to refuse to complete the purchase without forfeiting the earnest money
BA contractual right giving a party the option to match any offer the owner receives from a third party before the owner can accept that third-party offerCorrect
CThe seller's right to refuse any offer below the listing price
DA lender's right to refuse financing if the property does not appraise

Why A contractual right giving a party the option to match any offer the owner receives from a third party before the owner can accept that third-party offer Is Correct

Answer B: A contractual right giving a party the option to match any offer the owner receives from a third party before the owner can accept that third-party offer

A right of first refusal (ROFR) gives a party (tenant, neighbor, investor) the right to purchase the property on the same terms as an offer received from a third party. The owner must present the third-party offer to the ROFR holder, who can match it and buy, or waive the right and allow the owner to sell to the third party.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

People Also Study

Practice More Delaware Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Delaware Quiz →