What does right of first refusal mean?

Question

What does right of first refusal mean?

Answer 1

Right of First Refusal to Purchase Real Estate

Purchaser desires to obtain a right of first refusal or first option to purchase certain real estate owned by seller and seller agrees to grant purchaser the exclusive and irrevocable right of first refusal and first option to purchase. Other provisions of the document include: exercise of first option, terms of purchase.

If this is the correct definition, then it's in your favor to sign which protects you and allows you first place in the bidding for the property.  If you don't sign, i believe another buyer could come right behind you and purchase the property and you wouldn't have any recourse at that time.  I don't know if you have gone past your escrow close date.  If yes, they might be pushing you to sign just to hold the deal together.

Don't get caught up in the jargon that they won't give you back your money.  If they don't do their part, you will have the opportunity to get your money back.  Builders want your business so it's not just black and white, there's a lot of grey in there.  

What might be happening is that they might have received a better offer and this protects them if you don't close on the deal.  They get to pass it over to the next person.  If you feel that the loan is going to close and that there's not problem with you getting the deal to close, then I'd sign just to ensure the property is given to you as first priority.  

I hope this helped.

Good luck.

Answer 2

a person pays you a fee to have the right to buy your home 1st or not to should you want to sell it