Law Office of Kimberly A. Abrams & Associates, P.A.
954-985-9715

Florida real estate transactions and the right of first refusal

Real estate contracts may include a right of first refusal provision. This provision allows the holder the opportunity to match purchase term agreement offered by a third party.

What to include: Two specific examples

A properly drafted provision must address a number of factors, including:

  • Define the property. The provision should apply to a specific piece of property. This can be particularly difficult if the property at issue is a small portion of a larger building, such as an office space within a multi-office building or a retail space within a mall. Ensure the language clearly defines the applicable property.
  • Have a specific trigger. The provision should also state what would trigger the right of refusal. Is an executed purchase contract required, or would a letter of intent suffice?

The sale of the property to the third-party can generally proceed if the offer is not met.

What could go wrong: Common disputes

Disputes often involve provisions that do not clearly state a trigger. Another example involves an offer that has a unique term, like the seller being able to secure financing.

Mitigate risks: Get legal counsel

It is important to discuss the full impact of this term. A right of first refusal provision generally has an adverse effect on the owner's future ability to sell the property. Issues can also arise involving the title. A preemptive right like the right of first refusal generally results in a burden on the title.

A failure to properly draft a right of first refusal provision can result in future issues. Mitigate this risk by seeking legal counsel experienced in Florida real estate transactions.

No Comments

Leave a comment
Comment Information

Schedule A Consultation With An Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Email Us For A Response
  • LOCATION

    Law Office of Kimberly A. Abrams & Associates, P.A.
    2699 Stirling Road, Suite A105
    Fort Lauderdale, FL 33312

    Phone: (954) 985-9715
    Fax: (954) 985-9745
    Map & Directions

Read Our Reviews on Google See Our Reviews on Facebook