What is a right of first refusal?

A right of first refusal is a contractual agreement that gives a party the ability to have the first opportunity to purchase something before it is available to anyone else. In Arkansas, it is a type of real estate law that is most commonly seen in residential lease agreements. It states that a tenant or lessee has the right to match any offer that a landlord or lessor receives from a third party for a rental property. If the tenant or lessee matches the offer, they have the right to purchase the property first. In commercial real estate transactions, a right of first refusal is often referred to as a “first refusal option” or “first option right.” It gives a tenant or lessee the right to match any bids from third parties when it comes to leasing or purchasing new property. The right of first refusal is often seen in situations where a landlord or lessor has an existing agreement with a certain tenant or lessee, and the tenant or lessee wishes to maintain the property in the future. For example, if a tenant is leasing a commercial property from a landlord and wants to buy the property after the end of the lease, the tenant can request a right of first refusal. This gives them the first opportunity to purchase the property before it is sold to a third party. In this case, the tenant must match any offer that the landlord receives from another party.

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What is a right of first refusal?

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