Real Estate Tip – Know Your Rights: First Negotiation & First Offer
Know Your Rights: First Negotiation & First Offer
Recently, we looked at a tenant’s option to purchase and the right of first refusal when purchasing commercial rental space. There are two additional ways for tenants to further preserve their right to buy the leased premises in the future:
• Right of first negotiation
• Right of first offer
The right of first negotiation does not assure a right to purchase, but it does require that the landlord attempt to negotiate a sale with the tenant before making deals with third parties. The right of first offer allows a tenant to make the first offer and prevents the landlord from selling to someone else at a lower price.
Fast-paced verbal negotiations with similar names can cause confusion that carries over into written documents. These four techniques require precise thinking and drafting, so brokers and lawyers must be certain to use specific language when drafting contracts for landlords and tenants.
Today’s real estate tip is brought to you by Rick Smith, a member of Bernstein Shur’s Real Estate Practice Group. Stay tuned for more useful tips for real estate professionals.
For more information on rights of first negotiation and first offer, contact Rick at email@example.com or 603 623-8700 ext. 8829 or 207 774-1200.