Contracts
Under Montana law, a 'right of first refusal' that is included in a deed:
AExpires after 10 years regardless of language in the deed
BCreates a covenant that runs with the land, binding all future owners✓ Correct
CIs only enforceable between the original parties
DMust be re-recorded at each property transfer to remain valid
Explanation
A right of first refusal recorded in a deed as a covenant running with the land binds all future owners of the burdened property. The holder of the right has the option to match any future offer before the owner can sell to a third party.
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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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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.
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