Property Ownership
Under Illinois law, a 'right of first refusal' in a real estate context means:
AThe government's right to purchase property before any private buyer
BA contractual right allowing a specific person to purchase the property before it is offered to others, at the same price and terms✓ Correct
CA tenant's right to refuse rent increases
DA lender's right to approve all property transfers before they occur
Explanation
A right of first refusal (ROFR) gives its holder the contractual right to purchase property at the same price and terms offered by a third party before the owner sells to that third party. If the owner receives an offer, they must first offer it to the ROFR holder.
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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.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
EasementA non-possessory right to use another person's land for a specific purpose.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Math Concepts
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