XIII.30. 2. What Triggers A Right Of First Refusal?

• Jurisdiction: New York

2. What Triggers a Right of First Refusal?

A right of first refusal is triggered when the grantor agrees to sell or can be bound to sell the property. Normally, this happens when the grantor enters a contract to sell the property. Some courts have ruled the right is triggered upon the grantor making an offer to sell the property that gives a third party the power to create a contract by accepting the offer.

When the grantor wishes to sell the property, it may negotiate a contract with the third party. It may enter into a contract of sale with the third party so long as that contract provides that it is subject to a right of first refusal and if that right is exercised...