How do you use first right of refusal in a sentence?

Current Tenant(s) will be given first option to execute a new Agreement for the following school year. Notice of Tenant’s intent to exercise their option must be received no later than October 1st. First Right of Refusal.

What triggers right of first refusal?

The right of first refusal is usually triggered when a third party offers to buy or lease the property owner’s asset. Before the property owner accepts this offer, the property holder (the person with the right of first refusal) must be allowed to buy or lease the asset under the same terms offered by the third party.

What is a right of first refusal in business?

Right of first refusal (ROFR), also known as first right of refusal, is a contractual right to enter into a business transaction with a person or company before anyone else can. If the party with this right declines to enter into a transaction, the obligor is free to entertain other offers.

What is ROFR vs rofo?

Under a ROFR, a third party (and not the holder of the ROFR) dictates the terms of how the underlying asset may be conveyed. Under the ROFO, the parties determine the price and terms related to the sale or lease of the asset without the interference of a third party.

What is RFR in real estate?

A right of first refusal (RFR) in a real-estate contract is typically a mechanism that gives to a specific party the right to be the first allowed to purchase a particular property if it’s offered for sale. The holder has the right to refuse to buy the property; it can be a confusing concept.

What is a right of first refusal agreement?

What is a Right Of First Refusal Agreement? A right of first refusal agreement, also called an ROFR agreement, is a contract where a potential buyer has the right to enter into a business transaction with a person or company before anyone else can.

What are the pros and cons of right of first refusal?

A right of first refusal is beneficial to interested parties because it gives them the opportunity to have first dibs before any other offers can be received on the property. However, it can be a disadvantage for sellers, since it can block their access to other offers. If playback doesn’t begin shortly, try restarting your device.

Should you be wary of a right of first refusal contingency?

Ultimately, though, sellers tend to be wary of a right of first refusal because it hinders their ability to work with other buyers. They can’t negotiate with a third party until they’ve received a formal termination of this contingency from the right-of-first-refusal holder.

When to exercise the right of first refusal on a property?

II. EXERCISE OF FIRST OPTION: This right of first refusal or first option to purchase may only be exercised by Purchaser within ten (10) days from notification by Seller that Seller desires to sell the subject property. Seller is obligated to provide such notice to Purchaser prior to offering the subject property to a third party. III.