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  • right of first refusal

    Hello,

    Just wondering if anyone can explain this topic? I have a
    piece of land which has this first refusal bit in it, 30 days.
    Does that mean they can just say I want it in 30 days, or do
    they have to come up with the cash?

    If I sell the property to someone else, can the refusal people
    get it back?

    The refusal bit also includes pricing info, such that I can only
    sell for the purchase price plus improvements. They were
    complaining about the price. Now that I told them I was thinking
    of taking another offer, they are more interested. He
    wants to send a $500 down payment, which I dont think I should
    accept. I basically want all the money at once or nothing.

    The deed doesnt seem to have any specifics on what constitutes
    refusal.

    Oh, the other offer includes me being able to continue to live
    here, rent-free

    Any thoughts would be helpful,

    -Greg


  • #2
    right of first refusal

    [email protected] (Greg Hassan) wrote in message
    news:<[email protected]>. ..
    Hello, Just wondering if anyone can explain this topic? I have a piece of land which has this first refusal bit in it, 30 days. Does that mean they can just say I want it in 30 days, or do they have to come up with the cash?
    A right of first refusal means you have to inform the holder of the
    RFR of the existence of the other offer, and you have to inform the
    potential buyer that someone holds a RFR, at least 30 days _before_
    your independent offer can be accepted and become a binding contract.

    If the RFR holder decides within that time that _he_ wants to buy the
    property for the agreed terms, then that's it. If he doesn't, you're
    free to close the deal with the other buyer.

    They don't have to come up with the cash within the 30 days -- but of
    course, neither would the other buyer. They just have to say "yes"
    within 30 days (the default answer, if they say nothing, is "no, I
    don't want it"). Then they have to come up with the money in
    whatever amount of time was agreed.
    If I sell the property to someone else, can the refusal people get it back?
    No, if you jump thru the right hoops first. The RFR has to be
    exercised (or the time to act allowed to lapse) _before_ the other
    deal can be closed.
    The refusal bit also includes pricing info, such that I can only sell for the purchase price plus improvements.
    That's unusual. The more common form is, they have to match the
    other offer.

    BTW, has it even occurred to you you might benefit from hiring an atty
    to help you in this? There's a passel of money at stake, sounds
    like.
    They were complaining about the price. Now that I told them I was thinking of taking another offer, they are more interested. He wants to send a $500 down payment, which I dont think I should accept. I basically want all the money at once or nothing.
    What did the agreement say about this? If nothing, IMO they would
    have the usual commercially reasonable time to come up with financing
    and/or full payment before closing on the deal. What they have to do
    within the 30 days is reach a definite agreement to buy for your set
    price.
    The deed doesnt seem to have any specifics on what constitutes refusal.
    Simple failure to reach an agreement constitutes refusal, assuming you
    make them the necessary offer which they then have a right to accept
    or ignore.
    Oh, the other offer includes me being able to continue to live here, rent-free
    You've already said that the RFR is not pegged to the terms of hte
    other offer. So this is irrelevant, except of course to your desire
    to accept the indept. offer.
    Any thoughts would be helpful, -Greg
    Just this: GET A LAWYER. You have no grasp of even the most basic
    concepts you're dealing with. You need someone who knows what he's
    doing to act on your behalf in this negotiation or you will likely get
    the short end of the stick.

    --
    This posting is for discussion purposes, not professional advice.
    Anything you post on this Newsgroup is public information.
    I am not your lawyer, and you are not my client in any specific legal
    matter.
    For confidential professional advice, consult a lawyer in a private
    communication.

    Mike Jacobs
    LAW OFFICE OF W. MICHAEL JACOBS
    10440 Little Patuxent Pkwy #300
    Columbia, MD 21044
    (tel) 410-740-5685 (fax) 410-740-4300

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