What is the term for a clause in a lease that allows a tenant the first opportunity to purchase the property?

The term that describes a clause in a lease allowing a tenant the first opportunity to purchase the property is known as the Right of First Refusal. This clause provides the tenant with the ability to match any offer that the landlord receives from a potential buyer, ensuring that the tenant has the option to purchase the property before it is sold to someone else. This protects the tenant's interest and can be an important factor in their long-term planning, especially if they have made the property their home and wish to continue living there under ownership.

The Right of First Refusal is particularly valuable because it gives tenants leverage in negotiations and a sense of security in their living situation. When landlords include this clause, it can encourage tenants to invest in the property, knowing they have a chance to purchase it if they choose to do so.

Other terms mentioned, such as Purchase Option, Lease Purchase Agreement, and Tenant Buyout Clause, refer to different arrangements and do not convey the same concept. A Purchase Option typically means the tenant has an option to buy but may not have the first opportunity to do so. A Lease Purchase Agreement usually involves a commitment to purchase at the end of the lease term, whereas a Tenant Buyout Clause typically refers to a provision allowing a landlord to buy