First Right of Refusal
The first right of refusal (ROFR) is a contractual right giving a specified party the first opportunity to purchase or lease property before the owner can sell to a third party. ROFRs are widely used in Florida real estate, commercial leasing, and business transactions.
How It Works
- Owner receives a bona fide third-party offer
- Owner notifies the ROFR holder of the terms
- Holder has a specified period to match the offer
- If matched, the holder purchases on the same terms
- If declined, the owner sells to the third party
Enforceability
- Must meet standard contract requirements
- Should be in writing under the Statute of Frauds
- Record in public records to provide notice to third parties
- Enforceable through specific performance or damages
Duration
ROFRs last for the term specified in the agreement. HOA ROFRs typically run with the land indefinitely. Perpetual ROFRs may be challenged as unreasonable restraints on alienation.
Related Terms
- Contract — The agreement creating the ROFR
- Encumbrance — ROFRs as title encumbrances
- Closing — ROFR exercise precedes closing
Barnes Walker Real Estate
Barnes Walker's attorneys draft, negotiate, and enforce rights of first refusal in Florida property and business transactions. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC