2022 Rights of First Offer, First Refusal in Real Estate

Recording available after original program date, 12/7/2022

Rights of first refusal and rights of first offer are frequently used in commercial real estate transactions, establishing rights to acquire property from a seller before it hits the market.  The practical effect of these tools is often to exert downward pressure on the price of the property and hamper development of a third-party market.  Rights of first refusal can help hasten a deal among buyers and sellers or landlords and tenants, thereby reducing costs, or they can be a costly waste of time. There are many subtle differences between rights of first refusal and rights of first offer, each with subtle tradeoffs for counter-parties that must be considered in context of a particular transaction.  This program will provide you with a practical guide to drafting rights of first refusal and rights of first offer in real estate.

•    How rights of first refusal and rights of first offer work in real estate transactions
•    Real-world costs, tradeoffs and risks of each type of right – and drafting tips and traps
•    Best circumstances in which these mechanisms are used in property acquisitions, sales, and leasing
•    How rights of refusal depress prices &limiting third party interest in the property – and how to mitigate
•    Practical strategies for buyers and sellers, landlords and tenants when negotiating these rights

Note: This material qualifies for self-study credit only. Pursuant to Regulation 15.04.5, a lawyer may receive up to six hours of self-study credit in a reporting year. Self-study programs do not qualify for ethics, elimination of bias or Kansas credit.