So, you’ve listed your house for sale and you have started the search to find a new home. Your agent has taken you to see roughly 10 properties when you find your dream home. The only catch…to afford this home you need to first sell your house. What does your agent do?
Your agent would write up an offer to purchase and include a clause titled “Right of First Refusal”. By putting this clause in your securing the opportunity to purchase the home before someone else does.
The definition of “Right of First Refusal” is:
An agreement that gives someone the right to purchase a property at the exact same terms and conditions contained in an offer that the owner has received (and wants to accept) from another buyer.
In this situation, the owner is first obligated to offer their property for sale to the holder of the First Right of Refusal at the exact price and terms contained in the offer they've received. The holder of the First Right of Refusal can then either agree to purchase the property under the same terms and conditions, or decline and allow the other buyer to move forward and complete the purchase.
There are many terms/clauses in a Real Estate transaction. It’s important to familiarize yourself with these terms. And if you’re unsure don’t be afraid to ask your agent to explain them to you. That’s what you hired us for. To help make the transaction go as smoothly as possible for you.