ORION REAL ESTATE
630 First Street South
Waite Park, MN 56387
320.251.1177

Q:  I signed a lease on a building and wanted an option to buy.  The agent suggested a right of first refusal instead.  What is the difference?

A:  Many people think an option to buy and a right of first refusal are the same. They’re not. An option to buy is a provision in the lease which sets a predetermined price and allows you to buy the property and compels the owner to sell the property at that price during the term of the lease. A right of first refusal gives you first chance to buy the property, if and only if, the seller decides to sell it.  He would need to offer the property to you before anyone else. In either case, you typically would need to be in full compliance with all the terms and conditions of the lease before you would have these rights.


If you have questions about buying or selling a business or other commercial real estate, please don’t hesitate to contact us at any time. 

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