Right of First Refusal

In property law, a right of first refusal typically allows a buyer to purchase property by matching another offer. It is the right of a party to match the terms of a proposed contract with another party. For instance, if Jones has a right of first refusal to purchase the White house, and White receives an offer of $100,000, then Green will be able to buy the property for $100,000.

Important legal issues are involved in a right of first refusal, such as duty of disclosure. For instance: When the White house is offered for sale, White must tell potential buyers about the right of first refusal. Jones may want to record the right of first refusal with the public records office so all buyers are on notice with regard to Jones' rights.