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A right of first refusal is a serious detriment to the value and marketability of property and often leads to litigation. In most situations you should avoid granting rights of first refusal if at all possible.
What are alternatives to the first right of refusal? The right of first offer, also known as the right of first negotiation, is the most effective alternative to the ROFR.
A right of first offer, in contrast, only obligates the seller to attempt to negotiate a deal. When Does an Owner Desire to Sell? Many landlord-tenant agreements include a right of first offer. This can lead to problems when the parties disagree as to the scope of their agreement.
Disadvantages for Sellers The ROFR limits the ability to negotiate with multiple buyers. The seller may have a difficult time attracting buyers. The right holder isnt obligated to transact a purchase. Another buyer might be willing to pay more than the right holder.
This Right of First Refusal to Purchase Real Estate is made on this the day of ,20 , by and between , hereinafter referred to as the SELLER and , and his/her assigns, hereinafter referred to as the PURCHASER.
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The property owner can benefit by having a potential buyer already lined up when its time to sell, which may help them in negotiations with other potential buyers. However, the downside for the property owner is that a ROFR can restrict their power of alienation, which is their ability to dispose of property.
Description: Provide a detailed description of the property or asset concerned. Acknowledgment: Clearly state that the grantor is waiving their right of first refusal regarding the described property. Signature and Date: Include spaces for both parties to sign and date the waiver.

waiver of right form