Contracts
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 offer✓ Correct
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
Explanation
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.
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