What Is Right of First Refusal?

By Matthew Frankel, CFP – Updated Nov 11, 2025 at 8:43 PM EST

Key Points

ROFR allows priority buying rights, key in real estate to secure strategic assets.
ROFR clauses vary in scope and duration, applicable to single or multiple assets.
Vici Properties uses ROFR to maintain dominance on the Las Vegas Strip.

Right of first refusal gives an individual, business, or other entity the right -- but not the obligation -- to buy an asset if its owner decides to sell it. There are many different applications of right of first refusal clauses and some important implications for investors, especially in the real estate sector. In this article, we’ll cover what the right of first refusal is, how it works, and how it applies to investing.

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst specializing in the real estate and financial sectors. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, Globe St, The National Desk, and other TV networks and publications for his real estate, financial, stock market, and investing expertise.

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Matt Frankel has positions in Vici Properties. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.