Tenant's right of first refusal to purchase
A right of first refusal lets you match a bona fide offer before the landlord sells the unit to someone else. Rare in residential leases, tenant-friendly when present, and can be worth real money in appreciating markets.
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What it actually means
A right of first refusal (ROFR) means that if the landlord gets a serious offer to sell the property, they must first offer it to you on the same terms. You have a set window (usually 15–30 days) to match; if you decline, they can sell to the outside buyer.
ROFRs are unusual in standard residential leases but common in condos, single-family rentals, and lease-to-own arrangements. The clause should specify the notice period, how you have to respond, and what happens if the outside deal changes materially after you decline.
What it looks like in a lease
"During the Term, if Landlord receives a bona fide offer to purchase the Premises that Landlord intends to accept, Landlord shall deliver a copy of such offer to Tenant. Tenant shall have thirty (30) days to elect to purchase the Premises on the same terms."
What to watch for
- Response window (15 days is tight; 30+ is fair)
- What counts as a 'bona fide offer' — should be a signed offer, not a verbal indication
- Whether material changes to the outside offer re-trigger your ROFR
- Whether the ROFR survives sale (usually not) or expires with the lease
- Whether the ROFR is recorded (a recorded ROFR is much stronger)
How to negotiate it
If you might want to buy the unit, ask for the ROFR to be recorded with the county recorder. That way a future buyer's title search picks it up and the landlord can't quietly ignore it.
When it crosses into a red flag
- Response window under 10 days
- Landlord can 'satisfy' the ROFR by offering the property at any price, even inflated ones
- ROFR waived on any transfer to an 'affiliate' or family member — a common workaround
Frequently asked questions
Do I have to buy at market value if they trigger the ROFR?
No — you match the terms of the actual outside offer, whatever they are. If the outside offer is above market, you pay above market; if it's below, you get a bargain. That's why the ROFR should specify the offer must be bona fide (real, arms-length).
Want to know how this works in your specific state? Read the Breaking a lease early guide, or pick your state from the guide index.
Related clauses
General information, not legal advice. Clauses are interpreted differently across states and courts. For a binding interpretation of your specific lease, consult a licensed attorney in your state.
