People become owners of real estate in many different ways. Sometimes, you have an interest in a property that you don’t own or cannot currently purchase. That doesn’t mean you don’t want to invest in the property.
For example, if you started leasing a house, you may hope to eventually upgrade from a renter to an owner when you can qualify for a mortgage. You may invest in the property assuming you will eventually be the owner.
Perhaps your parent has a house that you would like to buy after they die. You may even help you parent with bills or maintenance now because you want to buy the property later. Asking for someone to extend the first right of refusal to you for a piece of real estate might mean that you could eventually purchase it in the future.
How the first right of refusal works
Maybe your landlord has decided to retire and will now sell the property where you have lived for a decade. If you have the first right of refusal written into your lease, they have to offer you the opportunity to purchase the property at the listing price or its fair market value before they list it on the open market.
If you have an interest in real estate owned by a family member, they could also include the first right of refusal in their will. That way, the executor has to give you the option to purchase it before they sell it to anyone else.
Understanding that there are many contractual ways to protect your interest in real property in Connecticut can help you negotiate good terms in your lease or even ask a loved one to consider you when they plan their estate.