Contracts

In Oregon, what is a 'right of first refusal' clause in a real estate contract?

AThe seller's right to refuse any offer that is below asking price
BA provision giving a specific party the right to purchase a property before it is offered to others, usually upon matching a third-party offer✓ Correct
CThe buyer's right to terminate the contract after signing
DThe lender's right to approve or reject any sale of the mortgaged property

Explanation

A right of first refusal (ROFR) gives a designated party (often a tenant, neighbor, or business partner) the contractual right to purchase a property before it is sold to a third party. When the owner receives a bona fide offer, the ROFR holder has the right to match the terms within a specified time. ROFRs are common in Oregon land purchase agreements and commercial leases.

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