Opinion ID: 1723768
Heading Depth: 1
Heading Rank: 1

Heading: The Right of First Refusal.

Text: Although the lease refers to Riley's right as an option, his interest is more accurately referred to as a right of first refusal or, occasionally, as a preemption. Unlike an option, a preemption does not give the preemptioner the power to compel an unwilling owner to sell. A preemption merely requires the owner, when and if he decides to sell, to offer the property first to the person entitled to the preemption. Once the owner decides to sell the property, the preemption ripens into an option. The preemptioner may then elect to buy the land. If the preemptioner decides not to buy, then the owner may sell to anyone. Knepper v. Monticello State Bank, 450 N.W.2d 833, 836-37 (Iowa 1990) (citations omitted); accord Trecker v. Langel, 298 N.W.2d 289, 290-91 (Iowa 1980). See generally Wanda Ellen Wakefield, Annotation, Construction and Effect of Options to Purchase at Specified Price and at Price Offered by Third Person, Included in Same Instrument, 22 A.L.R.4th 1293 (1983).