Right of First Refusal gives a named party — often a sitting tenant, co-owner, or the original developer — the right to purchase a property on the same terms before the seller can sell to a third party. In off-plan contexts, some master developers retain ROFR over resales within a community to manage who buys into the development.
Why It Matters
- —Check the SPA for any ROFR clause before assuming you have an unrestricted resale market for your unit.
- —ROFR can slow down a resale, since the rights-holder must be given a window to respond before a sale to another buyer can close.
- —More common in master-planned communities and joint-venture developments than in single-tower new launches.