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Clauses Relating to Transfers of Venture interests - including Rights...

Orange California Clauses Relating to Transfers of Venture interests - including Rights of First Refusal

Name: Orange California Clauses Relating to Transfers of Venture interests - including Rights of First Refusal
Brand: US Legal Forms
Rating: 4.56 (470 reviews)

Category:

Partnerships - Drafting Joint Venture Agreements

State:

Multi-State

County:

Orange

Control #:

US-P0611-6AM

Format:

Instant download

Description

This form contains sample contract clauses related to Transfers of Venture Interests (Including Rights of First Refusal). Adapt to fit your circumstances. Available in Word format.

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FAQ

When discussing real estate, the term right of first refusal (ROFR), also called the first right of refusal, refers to the contractual right given to an interested party that allows them to be the first buyer to submit an offer on a specified property.

The right of first refusal is usually triggered when a third party offers to buy or lease the property owner's asset. Before the property owner accepts this offer, the property holder (the person with the right of first refusal) must be allowed to buy or lease the asset under the same terms offered by the third party.

A right of first refusal, different from a right of first offer, gives the right holder the option to match an offer already received by the seller. A right of first offer is said to favor the seller, while a right of first refusal favors the buyer.

People often talk about giving or getting a Right of First Refusal ("ROFR") in real estate transactions. But what is a ROFR? A simple definition might be: If the owner of the property decides to sell the property, then the person holding the ROFR gets the opportunity to buy the property on the same terms first.

With the right of first offer, a business partner or tenant is granted the right to make the first offer on a business or property. The seller is free to accept or reject the offer, and the seller is always free to return to the buyer if he can't get a better deal.

Most of us are familiar with the right of first refusal (ROFR) but not with the right of first offer (ROFO). Generally, a ROFR is advantageous to the purchaser and the ROFO is advantageous to the seller.

A right of first refusal (ROFR) is an option contract whereby the holder of the right has the future option to purchase property when the owner intends to sell it. The holder of the ROFR has the right to purchase the property prior to any other third party who seeks to purchase it.

The right of first refusal (ROFR) is a contractual right that can impact your business and future opportunities. Simply put, the ROFR gives the holder of the right the option to enter into a transaction before anyone else.

For example, a commercial tenant may prefer to lease a location; however, he may buy the premises if it meant that he would be evicted if the property sold to a new owner. In such a case, the tenant would negotiate to have a right of first refusal clause incorporated into his lease.

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Orange California Clauses Relating to Transfers of Venture interests - including Rights of First Refusal

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