Net lease glossary
Right of First Refusal (ROFR)
A tenant's right to match a third-party offer to buy the property before the landlord can sell to that buyer.
A right of first refusal gives the tenant the option to buy the property on the same terms as a bona fide third-party offer the landlord intends to accept. The tenant usually has a set number of days to respond. ROFRs can slow sales and discourage bidders, who may not want to spend diligence money on a deal the tenant can take. Sellers should confirm whether the ROFR applies to every sale or only the first, and what notices are required.