Property Management

In New York, a commercial tenant's 'right of first offer' to purchase the building (if the landlord decides to sell) is:

AAutomatically granted by NY law to all commercial tenants
BA contractual right that must be expressly negotiated and included in the lease or a separate agreement✓ Correct
CThe same as a right of first refusal
DOnly available to tenants who have occupied the space for more than 5 years

Explanation

A right of first offer to purchase is not an automatic right under New York law — it must be expressly negotiated and written into the lease or a separate agreement. It gives the tenant the right to receive the landlord's offer to sell before the property is marketed to others. This differs from a right of first refusal, which is triggered by a third party's offer. Both must be in writing and are negotiated contractual rights.

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