What is the significance of the "right of first refusal"?

The right of first refusal is a significant legal concept in real estate that grants an existing tenant or an interested party the opportunity to purchase a property before the owner offers it to other potential buyers. This means that if the property owner decides to sell, the tenant has the first chance to match any offer made by third parties or to negotiate a purchase. This right protects the tenant’s interests and investment in the property, potentially preventing displacement and offering them the opportunity to become a homeowner.

The other options do not accurately describe the essence of the right of first refusal. While landlords may adjust rental terms and tenants have various rights and protections, these do not pertain to the unique opportunity provided by the right of first refusal to buy the property. The focus of this concept is distinctly on sales opportunities rather than rental adjustments or tenancy rights alone.