What is a right of first refusal?

A right of first refusal is a type of legal agreement that gives a party the right to enter into a transaction with a property owner before the owner is allowed to enter into a similar transaction with a third party. In residential real estate law in Washington, a right of first refusal means that the party with the right must be given the first chance to buy, lease, or occupy a home or other residential property before the property owner can consider offers from other potential buyers or tenants. This gives the party with the right the chance to negotiate better terms or purchase the property before it is available to anyone else. It is important to remember that a right of first refusal does not guarantee that the party with the right will obtain the property. The party must still be able to negotiate a satisfactory transaction with the property owner, or else the owner may move on to another potential buyer or tenant.

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