Contracts
A right of first refusal gives the holder the right to:
ARefuse any offer on the property
BMatch any third-party offer before the owner accepts it✓ Correct
CSet the listing price for the property
DPurchase the property at any time without a third-party offer
Explanation
A right of first refusal allows the holder to match any bona fide third-party offer before the owner accepts it, giving the holder a priority purchase opportunity.
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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.
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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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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