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The Right of First Refusal Agreement (Real Estate) is a crucial document in Canadian property transactions that provides a potential buyer with priority rights to purchase a property before it can be sold to others. This agreement is commonly used in commercial and residential real estate when a party has a strategic interest in a property but is not ready to purchase immediately. It protects the right holder's future interests while allowing the property owner to maintain ownership and eventually sell at market value. The agreement must comply with Canadian federal and provincial property laws, including the Property Law Act and Real Estate and Business Brokers Act. It typically includes specific provisions for offer notification, response timeframes, pricing mechanisms, and transaction procedures. This document is particularly valuable in development projects, family property arrangements, and commercial leasing situations where future property acquisition rights need to be secured.

1. Parties: Identifies and provides full legal details of all parties to the agreement, including the property owner (grantor) and the party receiving the right of first refusal (grantee)

2. Background: Provides context for the agreement, including the current ownership status of the property and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Grant of Right of First Refusal: Explicitly states the right being granted and its scope, including any limitations or conditions

5. Property Description: Detailed description of the subject property, including legal description and current status

6. Term: Specifies the duration of the right of first refusal and any renewal provisions

7. Notice Requirements: Details the process for notifying the grantee of any third-party offers and the required content of such notices

8. Exercise of Right: Outlines the procedure and timeframe for exercising the right of first refusal

9. Purchase Price and Terms: Specifies how the purchase price will be determined and the basic terms of purchase if the right is exercised

10. Transfer Process: Details the process for completing the property transfer if the right is exercised

11. Termination: Circumstances under which the agreement may be terminated and the process for termination

12. Assignment: Whether and under what conditions the right of first refusal may be assigned to another party

13. Notices: Specifies how formal notices under the agreement must be given

14. Governing Law: Specifies that Canadian law governs the agreement and identifies the applicable jurisdiction

15. General Provisions: Standard contract provisions including entire agreement, amendments, severability, and counterparts