PITFALLS IN EXERCISING A RIGHT OF FIRST REFUSAL
Tiekiedraai Eiendomme (Pty) Ltd v Shell South Africa Marketing (Pty) Ltd and Others (1206/2016)  ZASCA 41 (28 March 2018)
In essence a right of first refusal in the hands of a tenant has two components: there is an undertaking by the landlord not to sell the property to a third party without giving the tenant the right of first refusal; and the landlord is obliged to offer the property for sale to the tenant at the price and on equal terms to that offered to the third party. Including a right of first refusal in a lease usually involves the obligation that all the detail of the third party’s offer be made known to the tenant, otherwise he is not able to exercise his rights. This judgment supports this logic and illustrates how things can go wrong if the third party’s full offer has not been presented to the tenant.
STBB’s STSMA REFERENCE GUIDE
In this, the fifty-first set of notes for your STSMA Reference Guide, Prescribed Management Rule 30 is discussed.
Prescribed Management Rule 30
(N.B. Print in landscape)