Right of first refusal protects chance for purchase
by Jim Coleman, REALTOR®
RIGHT OF FIRST REFUSAL PROTECTS CHANCE FOR PURCHASE
There are times when a party may have an interest to buy a particular property but not necessarily be ready to make the purchase at that time. Or sometimes a renter may have an interest to buy a property being rented if it comes up for sale by the owner landlord. These are a couple of scenarios where the Right of First Refusal may have application. Let's take a closer look.
One requirement is that the owner be willing to extend this right to a party in anticipation of a future event if a decision is made to sell. The "would be" buyer makes his desire known to the seller and basically tells the seller that if he, the seller, decides to sell, then he, the buyer, is interested and wants the first opportunity to buy. If the seller agrees and extends this right to the buyer, and then subsequently is presented an offer by a second interested buyer, then before the seller can accept the offer from the second buyer, the seller must show the offer to the first buyer and the first buyer have the opportunity to meet or beat the offer. Hence, the meaning and an understanding of the Right of First Refusal as it may play out between the seller and respective buyer parties.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He works with Buyers and Sellers and Specializes in Residential, Investment and Commercial Real Estate. You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.
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