What does the “right of first refusal” signify in a real estate context?

The "right of first refusal" in real estate signifies a contractual agreement that grants a specific party the opportunity to purchase a property before it is offered to others. This means that if the property owner decides to sell, they must first present the offer to the holder of the right of first refusal. If the holder chooses not to purchase, then the owner can proceed to sell the property to another interested party. This arrangement provides advantageous leverage to the holder, often allowing them to secure a desired property without competition.

This concept is particularly useful in situations where someone has an interest in a property, and it helps ensure they have the first chance to acquire it, potentially preventing unwanted sales to third parties.