Property Management

A Texas commercial tenant has a 'right of first offer' (ROFO) in their lease. This means:

AThe tenant must be offered the space first before the landlord can lease to others
BIf the landlord decides to sell or lease additional space, they must first offer the opportunity to the current tenant before going to the market✓ Correct
CThe tenant can refuse any rent increase
DThe tenant can purchase the building at appraised value

Explanation

A right of first offer (ROFO) requires the landlord to offer the current tenant the opportunity to lease additional space or purchase the property before marketing it to others. The tenant can accept or decline the offer, after which the landlord can proceed to market.

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