As a property owner in Texas, you want to ensure that your assets are protected and passed on to your loved ones according to your wishes. One way to accomplish this is by including a right of first refusal in your estate plan.
What is a right of first refusal and why include it in your estate plan?
A right of first refusal is a legal agreement that gives an individual or group the right to purchase a specific piece of property before the owner can sell it to another party. Essentially, it's a preemptive right that allows the person with the right of first refusal to purchase the property if the owner decides to sell. When the owner expresses an intention to sell, the individual who holds the right of first refusal must elect to either purchase the property or decline to purchase it and allow the owner to sell it to an another outside the agreement. A.G.E. Inc., vs. Buford, 105 S.W.3d 667 (Tex.App.—Austin 2003, pet. denied).
Including a right of first refusal in your estate plan can help protect your property and ensure that it stays within your family. For example, if you own a vacation lake house that you want to keep in the family, you can include a right of first refusal in your estate plan to ensure that your spouse, children or other family members have the opportunity to purchase the property before it is sold to someone outside of the family.
How do you create a right of first refusal in your Texas estate plan?
To create a right of first refusal in your Texas estate plan, you will need a document that outlines the terms of the agreement and identifies the individual or individuals who have the right of first refusal. The document will then need to be signed by all parties involved and notarized.
It is important to note that a right of first refusal may be subject to certain limitations or conditions, such as a time limit for exercising the right or a requirement to match the highest offer from another party. Therefore, it is important to work with an experienced attorney to ensure that the right of first refusal is properly drafted and legally enforceable.
Including a right of first refusal in your Texas estate plan can help protect your property and ensure that it stays within your family. By working with an attorney who specializes in estate planning, you can create a legally binding agreement that outlines the terms of the right of first refusal and ensures that your wishes are carried out.
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