What is a right of first refusal?

A right of first refusal is a contractual agreement between two parties in which one party (the owner) agrees to give the other party (the potential buyer) the first opportunity to purchase specific real estate before they offer it to any other buyers. This right generally applies to residential real estate in New York, such as single-family dwellings, condos, and townhouses. Under a right of first refusal, the potential buyer can accept the offer or decline it, but they must be given the opportunity to purchase the property before it can be offered to another buyer. The agreement must be in writing and accepted by both parties. In New York, if a homeowner has granted a right of first refusal, they must negotiate in good faith with the potential buyer before offering the property to other potential buyers. If an agreement is not reached between the potential buyer and the homeowner, the property may then be offered to another buyer, provided that it is done in good faith. The main purpose of a right of first refusal is to protect the potential buyer from being outbid by another party and ensure that they have the opportunity to purchase the property. This agreement is commonly used in real estate transactions in New York and allows the potential buyer to make an informed decision without feeling rushed or pressured into a sale.

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What is a right of first refusal?

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