Right of First Refusal in California Leases. It must be set forth in the contract and even then only arises if the owner decides to sell. But if the owner decides to sell and gets a bona fide offer from a 3rd party, the right becomes an option. The Right holder must match the 3rd party bona fide offer–you can’t negotiate and keep your option. Litigation can arise when the Seller has 3rd party insert conditions in an effort to frustrate the right. The right is often null and void if the tenant is in default.
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