Property Management

A South Dakota commercial tenant has a lease with a right of first refusal to purchase the building. If the owner receives an offer to sell, the tenant must be:

AGiven the option to purchase at a price below market value
BNotified and given the opportunity to match the offer✓ Correct
CCompensated if they choose not to exercise the right
DGiven 90 days to secure financing at any price they choose

Explanation

A right of first refusal requires the owner to notify the rights holder of any purchase offer and give them the opportunity to match the offer. If the tenant matches, the owner must sell to the tenant.

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