What is a right of first refusal? How does a right of first refusal work in real estate sales and how does it differ from a home sale contingency?
if you are buying or selling a home it is very possible you will hear about two real estate terms. A right of first refusal and a kick out clause are two terms that mean exactly the same thing.
So what is a right of first refusal? A right of first refusal is an agreement made with a buyer whereby you give them the option of purchasing your home should an acceptable offer come in.
Another way to look at this is you have 1st dibs on buying a piece of property. More often than not a buyer who is asking for a right of first refusal is not in a financial position to buy a home at the time their offer is being made.
Sometimes buyers trying to purchase a home will ask for a home sale contingency. More often than not this is rejected by the seller as being undesirable. A right of 1st refusal is like having a compromise that can end up being a win-win for both parties.
In the article I share everything you need to know about a right of first refusal. I give you things you should be thinking about to determine if this type of real estate clause is beneficial in the circumstances you are under.
There are times when the kick out clause may not make the most sense especially if the real estate market is extremely hot.
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