In posting something on the Corner on the new Scottish law that would give crofting ‘communities’ new rights to purchase the land on which they live, I commented that there didn’t seem to be anything wrong with part of it – giving the crofters the right of first refusal when the land comes up for sale.

One reader disagrees:

“Agreeing to a right of first refusal is a huge “give” in negotiations. The reason is that if …[the] asset [is] subject to a right of first refusal… the universe of potential buyers of the asset [is decreased] — many won’t want to spend the time and money required to negotiate a deal… only to have it taken away by the holder of the right of first refusal. By decreasing the universe of buyers, you decrease…liquidity and quite possibly the market price of [the] asset.”

I think he’s right.