What is a right of first refusal?

A right of first refusal is a legal right given to an individual or group of individuals before any kind of property (in this case, residential real estate) is sold to a third party. This right gives the individual(s) the opportunity to purchase the property before it can be sold to someone else. In Texas, when a homeowner is looking to sell their residential property, they may offer a right of first refusal to a potential buyer or group of buyers. The potential buyer(s) may choose to accept the right of first refusal in order to lock in their ability to purchase the property. This means that the homeowner must first offer the property to them before they can offer it to someone else. If the potential buyer(s) accept the right of first refusal, they must then purchase the property if the homeowner decides to sell. If they do not accept the right of first refusal, however, the homeowner would be free to offer the property to a third party. In summary, a right of first refusal is a legal right that gives an individual or group of individuals the opportunity to purchase a residential property before it can be sold to someone else. This right is offered to potential buyers in Texas, and must be accepted in order to lock in their ability to purchase the property.

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What is a right of first refusal?

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