Rights of First Offer, First Refusal in Real Estate

Rights of first refusal and rights of first offer are frequently used in commercial real estate transactions, establishing rights to acquire property from a seller before it hits the market.  The practical effect of these tools is often to exert downward pressure on the price of the property and hamper development of a third-party market.  Rights of first refusal can help hasten a deal among buyers and sellers or landlords and tenants, thereby reducing costs, or they can be a costly waste of time. There are many subtle differences between rights of first refusal and rights of first offer, each with subtle tradeoffs for counter-parties that must be considered in context of a particular transaction.  This program will provide you with a practical guide to drafting rights of first refusal and rights of first offer in real estate.

Schedule:

•    How rights of first refusal and rights of first offer work in real estate transactions
•    Real-world costs, tradeoffs and risks of each type of right – and drafting tips and traps
•    Best circumstances in which these mechanisms are used in property acquisitions, sales, and leasing
•    How rights of refusal depress prices &limiting third party interest in the property – and how to mitigate
•    Practical strategies for buyers and sellers, landlords and tenants when negotiating these rights