Property Management

A Texas property manager is negotiating a new commercial lease. The tenant requests a 'right of first refusal' clause. This means:

AThe tenant can refuse any rent increases
BIf the landlord offers the space to another party, the current tenant has the first right to match the offer✓ Correct
CThe landlord must offer the space to the current tenant before listing it
DThe tenant can buy the building before it is sold to a third party

Explanation

A right of first refusal (ROFR) gives the tenant the opportunity to match a third-party offer before the landlord accepts it. The landlord must present the offer to the tenant, who can exercise the ROFR to accept the same terms.

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