Rights of first refusal – tips and traps

Pre-emption rights, also known as rights of first refusal, allow the grantee to acquire land, or a lease, but unlike an option, a pre-emption right is not exercisable unless and until the grantor decides to sell the relevant land (or to take whatever other action in relation to that land triggers the possible exercise of the rights).

This webinar looks at the tricky issues relating to these rights, and warns of the traps that exist, including:

• When does a pre-emption right take effect as an interest in land?
• Triggering the possible exercise of a pre-emption right
• What kind of “disposal” triggers the possible exercise of the pre-emption right?
• When does the grantor wish/intend/propose to make the disposal?
• How long does the grantee have in which to exercise the pre-emption right?
• What price must the grantee pay?
• What is the grantor’s position after the exercise period ends without the pre-emption right being exercised?
• Protecting the pre-emption right
• The rule against perpetuities and pre-emption rights