Right of First Refusal Clause
What is this form?
The Right of First Refusal Clause is a legal document that grants a tenant the opportunity to purchase the property they are leasing before the landlord can sell it to other buyers. This clause functions similarly to an option contract, providing the tenant the rightâbut not the obligationâto enter into a purchase agreement based on the terms of an acceptable offer from a third party. This form is essential for tenants looking to secure an advantage in property acquisition while ensuring that landlords are obligated to notify them of any serious offers they receive.
What’s included in this form
- The tenant's right to receive written notice of third-party offers.
- The specified timeframes for accepting the right to purchase.
- Details on executing a purchase contract upon acceptance.
- Conditions under which the landlord may proceed with selling to a third party if the tenant does not act.
- Provisions for leasing additional space if available.
When to use this document
This form is necessary when a tenant wants to protect their potential investment in a property by having the first opportunity to buy it if the landlord decides to sell. It is particularly useful in commercial leases, residential leases where ownership is anticipated to change, or in any scenario where tenants may wish to maintain their occupancy and ownership of the property they are renting.
Who should use this form
- Tenants who wish to secure rights to purchase the property they are renting.
- Landlords looking to establish clear terms for future property offers.
- Property management companies handling leases that may involve purchase options.
- Investors considering tenant agreements with purchase rights.
Completing this form step by step
- Identify the parties involved, including the landlord and tenant.
- Specify the property being leased and any terms agreed upon.
- Enter the specific timeframes for the tenantâs response to offers.
- Include conditions about purchasing additional space if applicable.
- Ensure all parties sign and date the document to validate the agreement.
Does this document require notarization?
This form does not typically require notarization unless specified by local law. However, having a notarized document may add an extra layer of validity in some cases.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to specify clear timeframes for the tenant's right to respond.
- Not including all necessary details of third-party offers in the notice.
- Neglecting to address the consequences of failing to exercise the right.
Why complete this form online
- Convenience of accessing and downloading the form anytime.
- Editability enables customization to meet specific needs.
- Reliability as documents are created based on templates drafted by licensed attorneys.
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FAQ
Seller hereby grants Purchaser a right of first refusal on the Property or any portion of the Property in ance with the terms below (?Right of First Refusal?).
Right of First Refusal Example In order to make her client happy, Aaliyah approaches the owner of the rental property and asks for a right of first refusal. The property owner agrees that they will give Aaliyah's client first dibs on the home if they decide to sell.
A right of first refusal is a fairly common clause in some business contracts that essentially gives a party the first crack at making an offer in a particular transaction.
For example, let's say there's a business that is leasing a space on one floor of a commercial building. The owners anticipate needing to expand their office in the next year or two. They may have a right of first offer if space on another floor in the same building opens up.
First, a Right of First Refusal (?ROFR?) is a lease term that gives a tenant the right to purchase the real property in the event the landlord gets a third-party offer to purchase the real property.
