When you’re a renter who’d like to become a homeowner, you may have first dibs on the home you’re living in if you’d like to buy it, which is called the right of first refusal.
But right of first refusal only applies in limited circumstances. Here’s what you need to know.
What is a Right of First Refusal?
In real estate, a right of first refusal is something you’ll find in a lease or rental agreement. It gives a party the right to buy a property before the seller negotiates any other deals regarding the property.
If you have a clause like this in your rental or lease agreement and the person who owns the property wants to sell it, you have the option to put in an offer that the owner has to consider before all other offers. (With this type of clause, the person who owns the home has to notify you that it’s going up for sale.)
If you end up declining to purchase the property, the owner can then negotiate with other people who are interested in buying it.
When is a Right of First Refusal Used?
Usually, a right of first refusal clause comes into play between a landlord and tenant, when the landlord wants to sell the property. However, it can also happen when a family member wants to buy the home or when you’re dealing with a homeowners association or condo board; in this case, the board can vet prospective buyers before a homeowner can accept an offer.
Are You Selling or Buying a Home in Aspen?
If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
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