Massachusetts Real Estate License Practice Test

What is the primary purpose of a First Right of Refusal?

1. To allow sellers to avoid listing properties

2. To give sellers time to improve their property

3. To grant buyers priority in purchasing the property

4. To restrict access to the property

The correct answer is: To grant buyers priority in purchasing the property

A First Right of Refusal serves as a legal agreement in which a potential buyer is given the opportunity to purchase a property before the seller considers offers from other buyers. This type of arrangement ensures that the buyer has priority to buy the property, providing them with the chance to match any offer the seller may receive or to decide whether they want to proceed with a purchase before the seller can engage with other potential buyers. By granting buyers this priority, the First Right of Refusal can be an enticing feature for someone seriously interested in a property, as it effectively protects their interest in potentially making a purchase. This arrangement is particularly useful in competitive real estate markets, where multiple interested parties may be vying for the same property. The other options do not accurately capture the essence of a First Right of Refusal. It does not primarily serve to help sellers avoid listing properties, improve their current property, or restrict access; rather, it focuses on granting specific purchasing rights to interested buyers.