What is a right of first refusal?

A right of first refusal is a legal concept relevant to residential real estate law in California. It is a contractual right that gives an individual or entity the option to purchase a property before it is made available on the open market. The right of first refusal is usually included in lease agreements between a landlord and tenant. In this situation, if the landlord wishes to sell the property, they must offer the tenant the opportunity to purchase it before listing it for sale. The same concept applies to homeowners. For example, if a homeowner wishes to sell their property, they may agree to grant a right of first refusal to a family member or neighbor who is interested in buying the property. This means that the family member or neighbor has the opportunity to purchase the property before it is listed for sale. In addition to being commonly used in residential real estate matters, the right of first refusal is also used in other areas such as business partnerships or partnerships between parent companies and subsidiaries. It can help prevent a third-party from purchasing the property without the person or entity with the right of first refusal having the chance to purchase it first. Overall, a right of first refusal is a contractual right that gives an individual or entity the first option to purchase a property before it can be listed on the open market. It is commonly used in residential real estate matters in California and can be beneficial for both buyers and sellers involved in the transaction.

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What is a right of first refusal?

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