When selling land, granting a buyer the right of first refusal on additional property can be a valuable negotiating tool, but it’s also something many sellers are hesitant to consider. While past experiences and poorly written agreements have given these arrangements a bad reputation, a right of first refusal doesn’t have to be complicated.
When structured properly, a right of first refusal can help sellers close a deal while giving buyers an opportunity to purchase additional acreage down the road. Clear, well-drafted documentation is essential to protecting everyone involved. Rather than including a few vague sentences in the deed, using a separate, detailed agreement that clearly outlines the terms, responsibilities, and procedures can help prevent misunderstandings and costly disputes down the road.
In this video, Pat Porter of RecLand Realty shares what landowners should consider before granting a right of first refusal. With the right approach, it can be a practical part of a successful land transaction rather than a source of future disputes.
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