Contracts
A 'right of first refusal' gives the holder the right to:
APurchase the property at any price they choose
BMatch any bona fide offer the owner receives before the owner can accept it✓ Correct
CRefuse to sell the property to any buyer
DReceive an automatic commission if the property is sold
Explanation
A right of first refusal requires the owner, if they decide to sell, to offer the holder the opportunity to purchase the property by matching any bona fide third-party offer before accepting it.
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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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
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