Which party is known to have the right in a Right of First Refusal?

A Right of First Refusal is a contractual right that allows a specific party to have the first opportunity to purchase a property before the owner sells it to another buyer. In real estate transactions, it is often granted to tenants, which allows them to purchase the property they are renting before the owner considers offers from other potential buyers.

In this context, the tenant is in a position to accept or decline the purchase of the property, thereby having the right to make a decision prior to the property being offered to other parties. This right can offer the tenant security and the potential for continuity in their living situation, as they can choose to buy the property they are already occupying.

Other parties, such as the seller, lender, or buyer, do not typically hold this right within the context of a Right of First Refusal. Each of those parties has different rights and responsibilities in a real estate transaction; the seller owns the property and initiates the sale, the lender provides financing and may have conditions related to the mortgage, and the buyer is the potential future owner of the property. However, it is the tenant who benefits from the Right of First Refusal.