"Right of first refusal" is the provision contained in an instrument requiring the owner of the property to offer another person the first opportunity to purchase or lease the property.
The holder of the "right of first refusal" has no right to buy or lease the property unless and until the property owner offers the same for sale or lease to others or entertains an offer to purchase or lease the property from others.
The "right of first refusal" may also be granted in connection with any other form of conveyance of the property other than a sale or a lease (mortgages\deeds of trust, options to purchase, contracts for deed, etc.).
Any "right of first refusal" as shown by the public records as affecting the title of the land to be insured must be made a matter of an appropriate title exception in Schedule B. The title commitment must also contain a requirement in connection with the proper waivers or releases to be executed by those upon whom the right was granted.
Effective in 2005, a holder of a right of first refusal in a condominium project cannot require a payment to release the right. See Property Code Section 5.014.