In the world of real estate, the term ‘right of first refusal’ refers to a clause in a lease that gives an interested buyer the right to make the first offer on a property when a seller lists it on the market. It’s often used by tenants who lease a property. If and when the property is listed on the market, the tenant would have the right to put in an offer first.
An ROFR doesn’t mean the potential buyer has to make an offer; they can ultimately decide not to bother, at which point the owner could offer the property to anyone else on the open market.