Contracts

What is a 'right of first refusal' (ROFR) in Hawaii real estate and how does it work?

AA. A buyer's right to be the first shown any new listing in a neighborhood
BB. The contractual right of a specified party to purchase a property at the same terms as another bona fide offer before the owner may accept the outside offer✓ Correct
CC. A seller's right to refuse any offer that doesn't meet their minimum price
DD. A tenant's right to refuse the landlord's lease renewal terms

Explanation

A right of first refusal gives the holder the right to match any bona fide offer the owner receives before the owner can accept it. The owner must present the third-party offer terms to the ROFR holder, who then has a specified period to match those terms or let the sale proceed. ROFRs appear in leases, partnership agreements, and as recorded encumbrances on Hawaii property.

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