Contracts
What is a 'right of first refusal' clause in an Idaho lease or purchase agreement?
AThe tenant's right to refuse all repairs
BThe right to match any third-party offer before the owner can accept it from a third party✓ Correct
CThe landlord's right to refuse any sale of the property
DA clause preventing the seller from listing with another agent
Explanation
A right of first refusal (ROFR) gives the holder the right to match any bona fide third-party offer before the owner can accept it. In Idaho residential leases, a ROFR gives the tenant the opportunity to purchase the rental property at the same price and terms offered by a third-party buyer.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
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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