Thursday, August 28, 2008

query: right of first refusal versus quit claim deed

The right of first refusal is typically reserved by a seller who wishes to exercise some control over future ownership of the property. In order for clear title to pass the property must be offered to the party who retained the right of first refusal before conveying title to someone else.

We usually obtain a letter from the party waiving the right of first refusal and record the letter as an exhibit with the deed. There is not requirement to record the letter. You can simply hold it in your file, however, should a dispute arise at some later date, and the letter is lost, well....

Anyway, you could use a quit claim deed to permanently extinguish a right of first refusal, however, I don't see that a quit claim would be needed for a simple waiver.

Your attorney or title agent can work out the details based upon local custom and law.

No comments: