What is a First Right of Refusal?

A Right of First Refusal Explained

In real estate sales there are always topics that confuse buyers and sellers. It is understandable as most people are not involved with real estate sales on a daily basis. One such term that lots of consumers don't know about is a right of first refusal. The right of first refusal can be useful in some circumstances.

In the article at Huliq, you will see an in-depth explanation of how a first right of refusal works. Using this tool could be a means of getting the home you really want. Quite often a first right of refusal is used when someone has been renting for quite a while. The tenant may not be in a financial position to purchase when they first start renting. Over time that could change.

At some point in time the landlord may no longer want to own the property. Rather than put it on the market they could have an easy sale with their existing tenant.

The tenant of course doesn't have to worry about competing with other buyers on the open market. The seller doesn't have to pay a commission. As you can see the scenario can work out for a win-win for both parties.

Does a right of refusal make sense in all circumstances? No of course not! Another example of a ROFR is when you are selling a home and give a potential buyer first dibs for purchasing the property.

You wouldn't want to give a buyer the right of first refusal though if they were not in a financial position to buy at the time you get another offer. Take a look at the article on Huliq for a complete explanation.