What This Right of First Refusal Agreement Template Covers

This right of first refusal agreement template is designed to protect the interests of property owners (Grantors) and potential buyers (Grantees) in real estate transactions. It outlines the conditions under which the Grantee may purchase the property before the Grantor sells it to another party. Key clauses include the Grant of Right of First Refusal, Notice Requirements, and Exercise of Right, ensuring clarity and legal compliance for both parties.

When to Use a First Refusal Contract

This first refusal contract is essential in various scenarios, such as when a property owner wishes to provide a potential buyer with the opportunity to purchase their property before it is listed on the market. It is also useful when negotiating property sales among family members or friends, ensuring that the intended buyer has the first chance to acquire the property. Additionally, real estate investors may use this agreement to secure favorable purchasing options.

What's Included in This Property Purchase Agreement Template

• Parties: Clearly identifies the Grantor and Grantee, including their full names and addresses, establishing the legal relationship between them.
• Recitals: Provides background information on the property and the intentions of the parties involved, setting the context for the agreement.
• Definitions: Clarifies key terms used throughout the agreement, ensuring both parties have a common understanding of their rights and obligations.
• Grant of Right of First Refusal: Details the specific rights granted to the Grantee, including the conditions under which they can exercise their right to purchase the property.
• Notice Requirements: Outlines the procedure for notifying the Grantee of any intent to sell the property, including the timeframe and method of communication.
• Exercise of Right: Specifies how and when the Grantee can exercise their right of first refusal, including the exercise period and any required documentation.

Key Real Estate Right of First Refusal Provisions

• General Provisions: Covers miscellaneous terms that govern the agreement, such as governing law and dispute resolution, ensuring the contract is enforceable and compliant with local regulations.
• Real Estate Purchase Option: Allows the Grantee to secure an option to purchase the property, providing flexibility and security in real estate transactions.
• Termination Clause: Specifies the conditions under which the right of first refusal may be terminated, protecting the interests of both parties.

Disclaimer: This template is for informational purposes only and does not constitute legal advice.