What is a right of first refusal?

A right of first refusal is an agreement between two or more parties in which one party has the option to be the first to accept an offer for a certain piece of property. In the state of Alaska, a right of first refusal is a legal contract that allows the original owner of a piece of property to be the first to accept a sale offer on that property, before any other offers can be accepted. This gives them a chance to match any offer made by a third party. In a right of first refusal agreement, the original owner is given the right to negotiate with a third-party buyer before a sale is completed. If the original owner decides that they would like to purchase the property for the same amount as the offer from the third-party buyer, they have the first right to do so. If the original owner decides not to make a purchase, then the third-party buyer is allowed to purchase the property. Right of first refusal agreements are most commonly used in real estate transactions. This is because the sale of a property is usually a substantial financial investment for both parties and a right of first refusal agreement can help protect both parties. It ensures that the original owner has the opportunity to accept an offer that is equal to or greater than what the third-party buyer is offering, if the owner wishes to do so.

Related FAQs

What is an escheat?
What are the elements of a valid deed?
What is a negative servitude?
What is an agreement to sell?
What are real estate taxes?
What is the “lost document rule”?
What is a license agreement?
What is the difference between a warranty deed and a quitclaim deed?
What is joint tenancy?
What is a covenant of seisin?

What is a right of first refusal?

Related FAQs

Related Blog Posts