It Depends on the Agreement
Contract rights can be subject to assignment provisions, restrictions, consent requirements and other limitations. A right should not be assumed transferable merely because it has economic value to someone else.
Why Transferability Matters to Last Shot
Transferability could fundamentally change the usefulness of a future purchase opportunity. Someone might acquire an LRR because they genuinely hope to own a particular property, then later have different plans. If the agreement permits a transfer, another interested person could potentially value the opportunity.
The Last Shot Secondary-Market Idea
Last Shot is exploring whether qualifying LRR agreements could be made easier to list and transfer through a marketplace. This is a proposed model, not a claim that every LRR is transferable or that an active secondary market already exists.
What Could Happen When the Property Goes Up for Sale?
One question we are particularly interested in is whether demand for an LRR changes after the underlying property enters the market. A future opportunity that once seemed remote could become more immediate. Whether that produces higher prices or more trading is unknown.
Could an LRR Increase in Value?
Possibly, but there is no established Last Shot market from which to make that conclusion. The value someone places on a contractual right could rise, fall or remain limited depending on the property, agreement, timing, market conditions and demand.
Could Someone Buy an LRR Without Intending to Buy the Property?
Last Shot is interested in whether some participants might value the contractual opportunity itself even if they do not currently intend to purchase the underlying property. That could involve far less capital than buying the real estate, but the holder would not own the property, a fractional interest in it, its rent or its appreciation.
Could the Property Owner Participate in Later Transfers?
One marketplace feature under consideration would allow the underlying property owner to receive a portion of qualifying later transfers. The percentage, fees and legal structure have not been determined.
Frequently Asked Questions
Can a ROFR be assigned?
Sometimes, but it depends on the agreement and applicable law. Assignment should not be assumed.
Can a Right of First Refusal be sold?
A transfer may be possible in some circumstances if the right is assignable, but the governing documents and law matter.
Can a Last Right of Refusal be transferred?
That depends on how the particular LRR is drafted and applicable law. Last Shot is exploring agreements intended to support appropriate transfers.
What happens to a Right of Refusal when a property is sold?
That depends on the right's terms, whether it was properly triggered or exercised, and applicable law.
How much is a Right of Refusal worth?
There is no universal price. Last Shot is exploring whether competitive bidding and a marketplace could help reveal demand for specific future purchase opportunities.
Can contractual property rights increase in value?
Market participants can value contractual rights differently over time, but Last Shot does not assume or promise that an LRR will appreciate.