Nevada Real Estate Practice Exam

A "right of first refusal" is a contractual agreement that grants a specified party the priority to purchase a property before the owner can sell it to anyone else. This means that if the property owner decides to sell, the party with the right of first refusal must be given the first chance to buy the property, often at the same price and terms offered by any potential buyers. This right protects the interests of the holder, allowing them access to the property under certain conditions before it can be sold to another party.

In contrast, the other options do not accurately reflect the nature of a right of first refusal. The option that suggests the seller has the ability to refuse any offers misinterprets the contract's intent, which focuses on giving preference to the specified party rather than outright refusal to engage with offers. Similarly, the notion of allowing a buyer to match the highest offer is a different concept often linked to bidding scenarios, rather than the priority access provided by the right of first refusal. Lastly, the suggestion that it grants the seller the right to cancel any sale does not align with the definition of this right, as the right of first refusal is concerned with giving the buyer the opportunity to purchase before other sales are considered.