75 Hour Broker Pre Licensing Practice Test

A right of first refusal is a provision that grants a specific party—often a tenant or potential buyer—the option to buy a property before the owner can sell it to someone else. This means that if the property owner receives an offer from another party, the holder of the right of first refusal has the opportunity to match that offer and purchase the property under the same terms. This concept is particularly relevant in real estate transactions as it provides an added layer of security for the person holding the right, ensuring they have the first chance to acquire the property if the owner decides to sell.

In the context of the other options, matching an offer to lease, renting before others, and disputing rental agreements do not directly relate to the essence of a right of first refusal, which specifically involves the opportunity to purchase a property. Understanding this distinction helps clarify the nature and purpose of such rights in real estate practices.