I was wondering if anyone has a simple/generic form for a First Right of Refusal. We have just finished a beautiful rehab which happens to have crappy neighbors on one side. The owners of the “crappy” house are toying with the idea of selling and have agreed to sign a First Right of Refusal with us. I believe this will help us get rid of the rehab we just completed. I’m just not sure how to go about it as we have never done it. Any advice would be appreciated. Thanks!!
why not enter into a contract to purchase with a great out clause and long escrow period…
Or maybe something like:
Contingent upon Buyer’s agreement to purchase property. If Seller accepts another written offer, seller shall give notice to Buyer in writing to remove this contingency for the close of escrow. If Buyer fails to complete these actions within 72 hours after receipt of such notice, seller may immediately cancel the agreement.
This is not legal advice and you should always contact an attorney.
Thank you for the ideas. Sound like you’ve run into this kind of thing. The owners can’t seem to decide if they are ready to sell at all right now. (I contacted them out of the blue) They don’t want to sign any contract right now other than a First Right of Refusal. Although this isn’t the best option I think it will be better than nothing. At least we can tell our potential buyers that we are trying to get the neighbors house eventually. Any other thoughts?
A FROR is a contract to sell, it only helps you not the seller so I am a little canfussed.
I hope this doesn’t get posted twice but if so, sorry. My understanding of a FROR is that it is simply giving you the first chance to buy when/if the owner does decide to sell it’s not actually a contract to sell. Unless there is another name for it that I’m unaware of. Either way, this is all the owners are willing to do at this time. I know of other instances where people have done this, mostly with vacant land. I just don’t have to document I need. Does this make any more sense to you or anyone else reading this? And if so, anyone know where I could find the doc I need? Thanks!
What you want is a Right of First Refusal. Not a First Right of Refusal. I know it’s confusing because they are the same words in a different order with a different meaning. Michael Q is right (I’m pretty sure he meant it helps the seller not you) because you are using the words in the wrong order for what you are trying to accomplish. What you want (I think) is a contractual right granted by the owner that gives you the right, an option, to enter into a business transaction (the buying and selling of a house) with the owner before the owner is entitled to enter into that transaction with a third party. Right of First Refusal. You can easily find one on-line or write it up yourself. It’s not rocket science. (I’m not being a smart a**, … just want you to know that the contractual right language is simple.) Always check with your attorney. If he charges you, find a new attorney.
X Agent Dino
Thank-you! No wonder I was confused! I will call our atty on Monday. Thank goodness for these forums. It’s a great way to learn!