The right of first refusal typically applies to a property that is how?

The right of first refusal is a contractual agreement often associated with properties that are not currently for sale. This right gives a specific party the opportunity to purchase the property before the owner can sell it to anyone else. Essentially, it allows the holder of the right to respond to any future sales attempts by the owner, giving them a preference in the transaction.

In the context of real estate, this right is commonly utilized in rental agreements or in instances where an owner wants to give particular individuals, such as tenants or family members, the chance to buy the property first when the owner decides to sell. Thus, since the property is not on the market at the moment, the right of first refusal serves as a safeguard for potential buyers to act before the property becomes available to the general public.

Properties that are under construction, listed with a realtor, or have been sold recently are typically not in a position to be subject to the right of first refusal because those situations imply that the property is actively involved in the sales process or has just completed a sale, which does not align with the essence of this right.