My question involves real estate located in the State of: Pennsylvania.
When we purchased our first home a few years ago, the seller also owned a small piece of land adjacent to the property. In retospect we should have negotiated an all out purchase, but it was not for sale at the time and we had this put in our contract: "Buyer has the right to first refusal/purchase of seller adjacent lot before conveyed to any other party."
I have searched online about right of first refusal and am still a little unclear on how it is applied. However, after re-reading our contract and seeing the full wording, I am even more unclear on how it works in our specific instance.
This is an issue now because the sellers are looking to sell the property next door. The realtor got in contact with us and is going to send some paperwork on the property, the listing agreemet that will go into effect in December if we do not purchase it, and something she wants me to sign if we're interested. That last part is where I'm pretty uneasy so I want to get a good understanding of what our rights are. The way she explained it is that we have this first bite at the apple, but if we choose not to pursue it then it will go on the open market and we will have no rights beyond that of a normal offeror. Based on the wording in our contract, would that be a correct interpretation?
Also, are our rights only to purchase the property at asking price or can we get an agent and negotiate the price? If we negotiate, what happens to our rights if the seller does not accept our offer?