What is a right of first offer?

answered 2012-08-22 17:20:41 -0500

Bob Francis
191 ●3 ●6 http://www.westlakeassoci...

You can have a right of first offer or a right of first refusal. Here is a good explanation.

A Right Of First Refusal requires that in the event the landlord receives an offer to lease or purchase (as applicable) the property from a third party that the landlord is willing to accept, then the landlord must submit this offer to the tenant, who then has the right to lease or purchase the subject property on the same terms and conditions as set forth in the third party offer. Only if the offer is rejected by the tenant, or the tenant fails to timely respond to the offer, may the landlord then proceed with the lease or sale of the subject property to the third party in accordance with the terms of the offer. In contrast, the Right Of First Offer requires that prior to marketing the property, the landlord must give notice to the tenant that a subject property is being made available for lease or purchase on the terms set forth in the landlord’s offer, and that the tenant has the right to lease or purchase the property pursuant to that offer by giving the landlord notice of its election