What is a preferential acquisition right?

The preferential acquisition right is a legal or contractual right that gives a person or entity priority to purchase an asset or property before it is sold to third parties. Basically, if the owner decides to sell their property, the preferential acquistion right holder has the opportunity to match or beat any offer they have received from a third party.

This gives you the ability to purchase the asset on an equal footing with other interested buyers. If the holder of the preferential acquisition right decides not to exercise his right, then the sale can proceed with the interested third party.

Related concepts

• Property
• Purchase option clause
• Right of first refusal and withdrawal