If you’re looking to buy a home, you may come across different clauses defining what you can and can’t do when buying (or selling) real property. Today, we’re going to go over another acronym used in negotiating real estate offers, ROFR or right of first refusal.
First right of refusal (ROFR), also known as first refusal, is the right to enter into an agreement with a person or company before anyone else can. If the party with the ROFR declines the offer, the obligor has the right to find a buyer.
Among lessees of real estate, this clause is popular because it allows them first preference over property. However, it may limit the prices an owner could receive from other parties who could compete for the property.
In terms of real estate, first right of refusal (ROFR), also called right of first refusal, refers to the contractual right given to an interested party that enables them to be the first to submit an offer on a specified property.
Whenever the ROFR holder withdraws his/her bid, the seller may accept other offers and someone else can purchase the property.
For any queries and suggestions related to it, contact us at firstname.lastname@example.org and discuss all of your options with an experienced real estate professional.