Rights of First Refusal

When the Buyer and the Owner start negotiations, it's important to list all the agreed conditions in a Purchase Agreement , before sending out the deposit. When the parties seal the transaction, it's useful to include a Right of First Refusal (ROFR) clause or agreement. 

What triggers a right of first refusal?

Having the first right of refusal on property, business, art objects, etc is often of great value to the holder. For that reason, the right of first refusal is a contractual condition or right that gives the holder the option to enter a business transaction with the owner of something, according to the specified terms, before the owner is entitled to enter that transaction with another (third) party. Since people often tend to haggle over small things for which they are willing to pay the least for (e.g. real estate sale in which a family like to include a small furniture item); if forced to give up money from their share, they often will not give up a small amount.  Keep this interesting human tendency in mind when negotiating this kind of clause, if they won’t pay, don’t give in on it. 

The following ROFR clauses are included to finalize the purchase:

• Owner definition
• Grantee definition
• Sum
  
• Offer
• Payment
• Intent to Purchase
• Effectiveness
• Headings
• Grant of Rights
• No Waiver
• Notices
• Entirety of Agreement
• Governing Law
• Severability

Download this Right of First Refusal to Purchase template and possibly save yourself some lawyer fees. This is a model contract. If you however have any doubts, it's always important to consult a local lawyer to discuss the situation.