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The right of first refusal in real estate

You enjoy working and living in South Florida, and you understand it is a hot real estate market. People move south to save money on taxes and enjoy a more temperate climate year-round.

Before you enter into any kind of contract, you should understand every clause you read. One of the standards a rental agreement should always contain is a right of first refusal. Knowing what this section means and how to deal with it is crucial if you want to continue on in the property.

The facts about the right of first refusal

The first thing you need to understand is the right of first refusal only applies to rental properties. It does not make sense in a purchase agreement because of what it deals with. Generally speaking, a right of first refusal gives you, the tenant or lessee, the option to purchase the property once the owner decides to sell it. This lingo gives you first bite at the apple before it goes to the public for perusal.

The right of first refusal offers you protection

You may wonder why this clause is so important in a lease agreement. For starters, it protects you from the unknown. It makes it virtually impossible for a landlord to give you notice that you will have new terms and conditions because he or she cannot sell the property without you knowing about it. Having this knowledge allows you to plan ahead for your future. If a new purchaser comes along, you may find that things do not really change. However, if the new owner seems to want things in a different direction, you will have the opportunity to start looking elsewhere.

The right of first refusal gives you some say in how your future living or working situation goes. Should you want to become an owner and not just a tenant, this may wind up as the push you need to make the next step in your personal life or career.

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