Right of first refusal
A right giving someone first crack at buying a property if the owner decides to sell. The rightholder gets to match any outside offer before it can be accepted.
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Where this comes up: getting ready
Part 1 of 4
Why a seller cares
If somebody holds a right of first refusal on your home, they get to match any offer before you can accept it. It slows the sale and puts buyers off, so it is worth finding out early whether one exists.
Part 2 of 4
A simple example
Your condo association holds a right of first refusal. A buyer offers $240,000, and the association has 15 days to match it before you can accept.
| What the rightholder does | What follows |
|---|---|
| Matches the $240,000 offer | They buy at that price and the outside buyer is out |
| Declines or lets the window pass | You accept the outside offer and the sale proceeds |
| Nobody checks whether the right exists | A sale that can be challenged after the fact |
A right of first refusal adds a step and a wait to every offer you get.
Part 3 of 4
What people get wrong
That it gives the holder a discount. They match the outside offer, they do not undercut it; what they get is the first chance.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines right of first refusal in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
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