In real estate, a First Refusal Right, also known as a right of first refusal, gives a lessee the opportunity to purchase a property before the owner sells it to someone else. If the owner decides to sell and receives a legitimate offer from a third party, the lessee has the right to match the terms of that offer.
This right does not require the owner to sell, but it does restrict the owner’s ability to sell to another buyer without first offering the property to the lessee. Rights of first refusal are commonly included in lease agreements to provide tenants with a potential future ownership opportunity.
