An "option to buy" gives someone the "irrevocable right" to purchase a property for a specific price during a certain period of time. A "right of first refusal" is similar, but it gives someone (such as a tenant or neighbor) the chance to buy the property at the same price and terms offered by someone else.
These are questions that the above text answers:
1. What is an "option to buy" in real estate?
2. What does it mean to have an "irrevocable right" in a real estate transaction?
3. How does a "right of first refusal" differ from an "option to buy"?
4. Who typically has the opportunity to exercise a "right of first refusal"?
5. What is the purpose of a "right of first refusal" in a real estate transaction?
6. What are the conditions for exercising an "option to buy"?
7. Can the price of a property be negotiated in an "option to buy" agreement?
8. How long does an "option to buy" typically last?
9. Can a "right of first refusal" be transferred to another party?
10. What happens if the holder of a "right of first refusal" declines to purchase the property?