New Launch - India Real Estate Report 2026.

What is a First Right of Refusal?

First Right of Refusal A first right of refusal is a contractual right allowing a person or entity to match an offer before a property is sold to another buyer.

How Does It Work?

  • Owner receives a third-party offer.
  • Holder is notified of the offer.
  • Opportunity to match the terms.
  • Sale proceeds based on the response.

Why Is It Used?

  • Protects strategic interests.
  • Preserves ownership opportunities.
  • Reduces acquisition uncertainty.
  • Provides negotiation advantages.

A first right of refusal gives a party priority to purchase a property before others. It helps secure future acquisition opportunities under agreed conditions.

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