Right of First Refusal

Last Updated: Jun 7, 2019

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Right of First Refusal is a legal right that gives its holder the option to enter into a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party.

A Right of First Refusal is typically used in Real Estate deals where the seller is allowed to market the property at will, but before any offers can be accepted, the seller mush notify the original interested buyer who has the right of first refusal. At that point, the person with the right of first refusal can decide whether or not to buy the property.