Not Every Transfer Triggers A Tenant's Right of First Refusal to Purchase

This is a tale of hard work rewarded in the face of a perilous right of first refusal to purchase.

Salvatore (Sam) Caruso, a 72 year- old semi-retiree working a few days a week, had amassed a nest egg for his family over his years in the hairdressing business. He owned a building on Jane Street, in Toronto, in which his salon was located. He owned another small commercial building on Lakeshore Road in Mississauga. These two buildings had been purchased as investments to see Caruso and his family through his retirement. Jose-Maria Tavares Enterprises Ltd. was Caruso's tenant at the Lakeshore property since 1985, operating a restaurant known as "The Great Canadian Pizza Company". Caruso had purchased the Lakeshore property in 1974.

The lease between Caruso and Tavares included a right of first refusal to purchase in favour of Tavares. The right of first refusal stated that it would be triggered if Caruso received a bona fide offer to purchase the property that Caruso was prepared to accept. 

Read the full article here: Not Every Transfer Triggers a Tenant ROFR to Purchase- January 20-2005