Question

The Bernharts have been leasing a property for the past three years. The owner of the property decides he wants to sell. He offers the Bernharts the first opportunity to purchase the property. This is an example of a

A) Leasehold interest
B) Right of first refusal
C) Option agreement
D) Land contract

Answer 1

The Bernharts being offered the first chance to purchase the property they have been leasing is an example of a 'Right of first refusal,' a contractual right based on their property rights.

Step-by-step explanation:

The Bernharts being offered the first chance to purchase the property they have been leasing is an example of a 'Right of first refusal,' a contractual right based on their property rights.When the owner of a property offers the Bernharts the first opportunity to purchase the property, this is known as a Right of first refusal.

This concept is one of the contractual rights that are based on property rights, allowing individuals or firms who own the property to enter into agreements with others regarding its use, hence providing a legal recourse in the case of noncompliance. The right of first refusal is a contractual right that enables the Bernharts to buy the property before the owner can sell it to someone else, which guarantees them a chance to procure the property they have been leasing.