Contracts
Which of the following best describes a 'right of first refusal' in a Hawaii lease or purchase agreement?
AThe right to be the first to make an offer before the property is publicly listed
BThe right to match any offer received before the owner accepts it from a third party✓ Correct
CThe right to purchase at a predetermined price regardless of market conditions
DThe right to terminate a lease before its expiration
Explanation
A right of first refusal gives the holder the right to match any third-party offer before the owner accepts it. The holder does not have to purchase but can match the price and terms to do so.
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Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Adverse PossessionA doctrine by which a person can gain legal title to another's land by openly, continuously, and adversely occupying it for a statutory period.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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