Contracts
What is a 'right of first refusal' clause in a Pennsylvania real estate context?
AA buyer's right to reject any seller counteroffer without losing the right to continue negotiating
BA provision giving a specified party the right to match any bona fide offer a seller receives before the seller can accept it from a third party✓ Correct
CA landlord's contractual right to refuse any lease assignment by the tenant
DA lender's right to decline a mortgage application before formally processing it
Explanation
A right of first refusal (ROFR) gives a specified party — a tenant, co-owner, or neighbor — the right to purchase a property at the same terms offered by a third-party buyer, before the seller can accept that third-party offer. The holder of a ROFR must be notified of any bona fide offer and given a specified time to match it.
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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