Right of First Refusal

A contractual provision giving its holder the first opportunity to purchase something, like real estate, on the same terms offered by a third party buyer if the owner decides to sell, allowing the holder to match or pass on the deal before the owner can sell to the other buyer.

For example, a commercial tenant could negotiate a right of first refusal clause in their lease to buy the property from the landlord if another buyer makes an offer the landlord wants to accept.