A. A right of first refusal works like this: A third party offers to buy the space at acceptable terms. The owner signs a sales contract that includes these terms. Before the third party signs that contract, the owner must send the sales contract, along with an offer notice, to the tenant, who has a right of first refusal to buy the space. Then, the tenant has to decided whether or not to buy the space on the terms specified in the sales contract.
If the tenant accepts those terms, it must notify the owner by a set deadline that it is exercising its right of first refusal. The tenant then has to sign the sales contract and send it back to the property owner. If the tenant rejects the terms or does not respond to the owner’s offer by the deadline, the tenant’s right of first refusal lapses and the owner can sell the space to the third party on the terms of the sales contract.
Tags: first right of refusal, Leases
