Contracts
A right of first refusal in a South Dakota purchase agreement means:
AThe buyer must be offered the property before it is listed publicly✓ Correct
BThe seller must accept the first offer received
CThe broker gets the listing before any other broker
DThe lender must approve the buyer before others are considered
Explanation
A right of first refusal gives the holder the right to match any offer the seller receives before the seller can accept from a third party. It does not require the seller to accept any particular price.
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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.
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