Right of First Refusal: A Definition.

A Right of First Refusal is simply an agreement between a seller and a potential buyer allowing the buyer the right to purchase the seller’s property prior to another purchaser. With this type of agreement, the seller generally keeps the property on the market and if another offer comes in, the original buyer would have the right to waive any contingencies in the contract and proceed to closing. If the buyer is unable to waive the contingencies, the seller then has the right to cancel the “contingent contract with the right of first refusal” and proceed with the second buyer.

The seller is giving the buyer the right to purchase the property prior to anyone else being allowed to purchase it. The buyer HAS the right of first refusal, and the seller GIVES the right of first refusal.