Property Ownership

A property owner grants a right of first refusal to a neighbor. The neighbor's right of first refusal means:

AThe neighbor can purchase the property at any time
BIf the owner decides to sell, they must first offer the property to the neighbor at the same terms as any outside offer✓ Correct
CThe neighbor can refuse to sell their own property to anyone they choose
DThe neighbor has the right to buy the property at below-market value

Explanation

A right of first refusal gives the holder the right to match any bona fide offer the owner receives before the owner can accept that offer from a third party. The right holder either matches the offer or allows the sale to proceed to the outside buyer.

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