What is a "right of first refusal" in Texas?

A "right of first refusal" in Texas is a contractual provision that grants a party the option to purchase a property before the owner sells it to others. This right essentially allows the holder to have the first opportunity to buy the property under the terms specified in the agreement, typically matching any offers made by third parties.

The significance of this right lies in its ability to protect the interests of the party holding it, often giving them leverage in negotiations and ensuring they have the first chance at acquiring the property. This can be particularly advantageous in competitive real estate markets.

Options that describe a right to purchase property after a certain period or as a requirement for tenants to be offered property first do not accurately encapsulate the nature of a right of first refusal. Additionally, a right to refuse sale without compensation lacks the purchasing aspect inherent in the correct definition of the right of first refusal, which is focused on allowing an initial opportunity to buy before external transactions take place.