Back to Glossary
Right of First Refusal
Updated
January 19, 2023
ROFR, also known as first right of refusal, is a contractual right to enter into a commercial agreement with a person or corporation before anybody else. If the party having this right rejects to participate in a transaction, the obligor may accept other offers. This is a standard provision among real estate lessees since it offers them a choice for the properties they inhabit. However, it may limit the amount of money the owner may earn from interested parties vying for the property.
Related Topics
When Is the First Mortgage Payment Due?
What Does Foreclosure Mean?
What Is a HELOC Loan?
Loan Default
Financial Considerations (For First-Time Home Buyers)
Mortgage Loan Types
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual