The Right of First Refusal Form [Form 1.7] is an agreement between the Buyer and the Seller. It is not an amendment to a sale agreement, nor is it a back up offer. Rather, the right of first refusal is a way for the Buyer to pay to ensure they are the accepted offer on a deal. After the Buyer pays the Seller some amount of money and the parties agree to the terms of the right of first refusal, any time the Seller has an offer or counteroffer that they wish to accept (as in, completely accept right that second, not an offer that they would accept after a few more rounds of negotiations), the Seller has to first send a redacted copy of the offer over to the Buyer. The Buyer gets a 5 day period to “accept” the offer and inform the Seller that the Buyer is invoking the right of first refusal. If the Buyer invokes the right; the Buyer and the Seller are under contract on the terms of the redacted offer; the Buyer is treated as agreeing to all the waivers, purchase prices, contingencies, and addendums by reference (the form states “If the Buyer exercises this right of first refusal, the parties agree to sell the property to the Buyer for $100.00 more than the offer. The Buyer may modify the method of payment and loan program provisions and attendant timelines if different from the offer, but otherwise shall agree to identical terms as written in the offer.”). Buyer can pay in a conventional loan (rather than all cash), or can pay with cash (rather than using a loan), but otherwise the terms are the same.
If a Seller is uncomfortable with the Buyer being able to supplant incoming bona fide offers from third-party buyers; Seller should not accept the Right of First Refusal.