Contracts
An Indiana purchase contract that includes a right of first refusal for the seller to purchase the property back if the buyer resells is:
AUnenforceable as it creates an unreasonable restraint on alienation
BGenerally enforceable as a contractual right if clearly documented and recorded✓ Correct
COnly enforceable for commercial properties
DOnly valid for 5 years
Explanation
A properly documented and recorded right of first refusal (option) is generally enforceable in Indiana, binding on subsequent purchasers with notice. However, courts scrutinize such restrictions and may limit them if they amount to unreasonable restraints on alienation.
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