Definition: A contractual right to receive an opportunity to buy or lease on specified terms before the owner completes a covered transaction with someone else.
Example
Before accepting a third party's qualifying offer, an owner gives the right holder the opportunity required by their agreement.
Keep the distinction clear
This differs from a purchase option that can be exercised according to its own terms. The triggering event, notice, and response period depend on the contract.
Related terms
Option Contract · Contract · Sale Contract
Keep studying
References: California DRE: glossary
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