What is a right of first refusal?

A right of first refusal is a type of legal agreement in real estate law, typically in Massachusetts. It grants the holder of the right an option to purchase a property before the property is put on the open market. For example, if someone holds a right of first refusal for a property, they have the right to be informed of any potential buyers and to be offered the opportunity to buy the property before the potential buyer does. In the context of Massachusetts law, this right is often written into the deed or lease of a property. It is typically granted to a tenant, lessee, or owner of a property in order to ensure that they can purchase the property before it is sold to someone else. In order to exercise the right of first refusal, the holder must respond within a given period and be willing to pay the same price and agree to the same terms that the other buyer has offered. If the holder of the right of first refusal does not agree to the terms of the offer, then the seller is free to proceed with the sale to the other buyer. It is important to note that a right of first refusal does not guarantee that the holder will be able to purchase the property; it simply gives the holder the option to purchase the property before the general public is able to buy it.

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