What is the "right of first refusal" in real estate?

The right of first refusal is a contractual agreement that grants one party the option to purchase a property before the owner can sell it to someone else. This means that if the property owner decides to sell, they must first offer it to the individual or entity that holds this right, usually at a specified price or under certain conditions. If the holder of the right declines the offer or fails to respond within a certain period, the property owner is then free to sell the property to other buyers.

This concept is important in real estate transactions as it provides an opportunity for interested parties to secure a property before it enters the open market, potentially allowing them to make a purchase under preferred terms. The existence of this right can also impact property value and marketability since buyers may see it as a chance to retain control over potential future sales of the property.

The other options describe different legal and contractual concepts that do not pertain directly to the right of first refusal. For instance, denying access to property or claiming use of land without ownership focuses on different aspects of property rights and land use. An agreement to share property profits pertains to financial arrangements rather than the specific purchasing opportunities associated with the right of first refusal.