Right of First Refusal

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.