Contracts
A 'right of first refusal' in a lease allows the tenant to:
APurchase the property at a price set in the lease
BMatch any bona fide third party purchase offer before the owner accepts it✓ Correct
CRefuse to vacate at lease end
DRefuse any rent increases
Explanation
A right of first refusal gives the tenant the right to purchase the property by matching any bona fide offer the owner receives from a third party, giving the tenant priority without setting a specific price upfront.
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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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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