The right of first refusal is a common term in commercial real estate. Despite its prevalence, many people don’t know what exactly it means. In this article, we are going to discuss the right of first refusal in commercial real estate dealings.
What is the Right of First Refusal?
In the realm of commercial real estate, a right of first refusal is the opportunity for a third party to purchase a property for the same amount as the prospective buyer. In essence, this third party has the right to purchase the property first, unless they refuse to do so. This right of first refusal is available to said third party at any time during the commercial real estate transaction, unless that right is recognized or disposed of as part of the transaction.
As you might expect, rights of first refusal can be hugely impactful in commercial real estate, and can sometimes completely upend a transaction. It's important to work closely with your title company to deal with any rights of first refusal if they exist in relation to your commercial property.
Make an Appointment with a Commercial Title Company
Make your appointment with a commercial title company today to talk about the specific details of your commercial transaction. Commercial Partners is a title company you can trust. We have decades of experience working on commercial transactions in Minnesota and across the country. Our team is comprised of escrow agents, underwriters, title closers, and more – all ready and able to help prepare your transaction for the closing table. Contact our team of experts today to learn more about the process and how we can help you through your next commercial real estate transaction.