First Right Of Refusal
Has anyone ever heard of "buying" a 'first right of refusal to purchase a certain property' that is not currently on the market, but may come on the selling market at a future date? (Example: such as farm land on the outskirts of a major developing area.) I thank all of you in advance for any comments or advice to this posting.
In my understanding, a first right of refusal is the opportunity for a buyer to buy the note the seller creates (if he's the note holder) if the seller decides that he wants to sell it at a discount. For example, if the seller of a property sells using seller financing and holds a note worth 100k, but in 1-2 years he just wants all his cash so he discounts the note to 80k to sell to an investor. If you as a buyer have first right of refusal you could buy that note (your note) outright for 80k. Make sense? Hope that didn't muddy the waters to much.
Andy