Contracts
A Massachusetts commercial lease that allows the tenant to expand into adjacent space when it becomes available is called a:
ARenewal option
BRight of first offer or right of expansion✓ Correct
CSublease right
DPurchase option
Explanation
A right of first offer (RFO) or expansion right gives a tenant the opportunity to lease adjacent space before the landlord offers it to outside parties, supporting the tenant's business growth within the building.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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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