What is the first right of refusal in Boston real estate? When you’re buying a home, no matter if you’re a first-time buyer or someone who a Boston real estate investor, you may find different clauses that will affect and define just how you can and can’t purchase a Boston downtown condo for sale
In today’s Boston Real Estate Blog post I’ll discuss the concept of first right of refusal
What is the Right of First Refusal clause in Boston real estate?
This a clause that gives any interested Boston condo buyer the ability to put an offer on a property that a seller is selling on the market.
If someone else were to show an interest in the property by putting their own offer in, the original interested buyer holds the right to buy the property over the second potential buyer or retract their interest and allow the seller to consider other options.
The first right of refusal can take place before a downtown Boston condo is listed for sale or after it is already on the market. Before the seller is allowed to accept other offers they have to give time to whoever they’re in the first right of refusal agreement to put an offer in for the home.
This usually has a time frame of somewhere between 24-72 hours.
After this time is up, or the buyer has declined interest, then the seller is free to do what they want with the property.
If you want to create an agreement for the first right of the refusal between you and another party, it would be best to have lawyers present as you’re going to want to outline things like the time limit on the first right of refusal as well as the sale price of the property in future. A right of first refusal is a part of an offer to purchase agreement or could be a separate agreement altogether.
This first right of refusal is a great way for a seller to find themselves an interested buyer as soon as they want to sell their property. If you find a buyer before listing you should also be able to save money on fees. You could use those savings for whatever makes sense.
For buyers, they get to be the first ones to put an offer in for their dream property without the worry of whether or not someone else is going to swoop in and steal the sale with a better offer. Hopefully, you now have a much better understanding of how a right of first refusal works in real estate.