|
Post by kl9 on Nov 25, 2021 16:54:23 GMT -6
Hypothetical: you own land that you know your neighbor would like to purchase one day if given the opportunity. What price would you charge them in order for them to receive a right of first refusal on your property, if you even would? Honest opinions please
|
|
|
Post by caveman on Nov 25, 2021 17:18:36 GMT -6
Handshake agreement is the best I would do. If in the future things get ugly between you and the neighbor and you have the agreement they could make a mess for you when it's time to sell.
Or make it stupid lucrative for you. $10k a year and goes up $5k a year. ... whatever numbers work for you.
|
|
|
Post by MoBuckChaser on Nov 25, 2021 17:44:51 GMT -6
Hypothetical: you own land that you know your neighbor would like to purchase one day if given the opportunity. What price would you charge them in order for them to receive a right of first refusal on your property, if you even would? Honest opinions please I have never screwed with right of first refusal with anyone when it comes to a land sale or purchase. To much shit can change and why would you want to open yourself up to possible litigation down the road if things don’t go as planned.
|
|
|
Post by kl9 on Nov 25, 2021 17:48:38 GMT -6
Hypothetical: you own land that you know your neighbor would like to purchase one day if given the opportunity. What price would you charge them in order for them to receive a right of first refusal on your property, if you even would? Honest opinions please I have never screwed with right of first refusal with anyone when it comes to a land sale or purchase. To much shit can change and why would you want to open yourself up to possible litigation down the road if things don’t go as planned. Is there a price you would put on such risk/inconvenience? I think Caveman’s suggestion is quite steep, but I think there’s a reasonable number some people might consider, no?
|
|
|
Post by Foggy on Nov 25, 2021 17:48:58 GMT -6
Without more terms and conditions....it would be pretty hard for a prospective buyer to pay much money for the first right of refusal. The other thing is that it could serve to limit (or expand) the effort you put into selling it. Seems to me there could be harm done either way. I think the cost of the legal fees and $500 is about the most that many folks would buy into a deal like that ? Each situation could be lots different. Dunno???
Edit: I wonder if legally you would have to disclose such an agreement to a prospective offer on your land......which would be a colossal waste of time for the new buyers. If I were a buyer I might run from such a deal and you would get hurt as you dont now have a full offer.
|
|
|
Post by kooch on Nov 25, 2021 17:50:15 GMT -6
The guy that bought my place asked for something like this a couple years ago. I just told him, “If I ever sell I’ll let you know first. You can make an offer. Make it a good enough one and I won’t have to look elsewhere. “.
He did.
|
|
|
Post by MoBuckChaser on Nov 25, 2021 17:57:16 GMT -6
I have never screwed with right of first refusal with anyone when it comes to a land sale or purchase. To much shit can change and why would you want to open yourself up to possible litigation down the road if things don’t go as planned. Is there a price you would put on such risk/inconvenience? I think Caveman’s suggestion is quite steep, but I think there’s a reasonable number some people might consider, no? A price? Let me give you an example of what land litigation can cost for the smallest things. I once challenged a farmer on whether he had a verbal lease on a piece of land I purchased at an auction. I said he didn’t have a verbal lease on said land because the owner had been dead for 3 years prior to the auction sale of the land after a bought it. So I leased it out to another farmer and the first farmer sued me for $25k thinking I would just pay them $10-15k and walk away. I countered sued him and his attorney tying them both up in court proceedings and depositions for almost 2 years. It cost me over $45k in legal fees to make him pay $25k in legal fees for 80acres of hay ground that he got not one dollar out of me when we got done. You want to take the chance of meeting me and my lawyer? Just Sayin.
|
|
|
Post by kl9 on Nov 25, 2021 17:58:57 GMT -6
Is there a price you would put on such risk/inconvenience? I think Caveman’s suggestion is quite steep, but I think there’s a reasonable number some people might consider, no? A price? Let me give you an example of what land litigation can cost for the smallest things. I once challenged a farmer on whether he had a verbal lease on a pice of land I purchased at an auction. I said he didn’t have a verbal lease on said land because the owner had been dead for 3 years prior to the auction sale of the land after a bought it. So I leased it out to another farmer and the first farmer sued me for $25l thinking I would just pay them $10-15k and walk away. I countered sued him and his attorney tying them both up in court proceedings and depositions for almost 2 years. It cost me over $45k in legal fees to make him pay $25k in legal fees for 80acres of hay ground that he got not one dollar out of me when we got done. You want to take the chance of meeting me and my lawyer? Just Sayin. I think that is a good example and you make a good point. However, I’m willing to take the risk
|
|
|
Post by MoBuckChaser on Nov 25, 2021 18:00:40 GMT -6
A price? Let me give you an example of what land litigation can cost for the smallest things. I once challenged a farmer on whether he had a verbal lease on a pice of land I purchased at an auction. I said he didn’t have a verbal lease on said land because the owner had been dead for 3 years prior to the auction sale of the land after a bought it. So I leased it out to another farmer and the first farmer sued me for $25l thinking I would just pay them $10-15k and walk away. I countered sued him and his attorney tying them both up in court proceedings and depositions for almost 2 years. It cost me over $45k in legal fees to make him pay $25k in legal fees for 80acres of hay ground that he got not one dollar out of me when we got done. You want to take the chance of meeting me and my lawyer? Just Sayin. I think that is a good example and you make a good point. However, I’m willing to take the risk Everyone gets an education sooner or later. Would not be a chance most lawyers would advise you to take. But have at it.
|
|
|
Post by kl9 on Nov 25, 2021 18:03:42 GMT -6
I think that is a good example and you make a good point. However, I’m willing to take the risk Everyone gets an education sooner or later. Would not be a chance most lawyers would advise you to take. But have at it. I’m hoping to, I just need to figure the price lol
|
|
|
Post by Reagan on Nov 25, 2021 19:10:56 GMT -6
I bought my first place with another guy I barely knew. His dad and my dad worked together forever. I knew his dad since I was a kid.
We bought it and split it into two parcels. He built a house and I left mine alone. We said in the beginning that of either wants to sell we will contact the other. Gentlemen’s agreement and nothing more.
When my current place came up, I talked to him about buying. He made an offer that was too low. I tacked $10,000 into his offer and we had a deal. I could have sold it for more. But I would have to deal with a realtor or make the two hour one way drive to show the place. There was value in getting a deal when I needed it.
Gentleman agreement can work. I wouldn’t promise anything more to anyone.
|
|
|
Post by benmnwi on Nov 25, 2021 19:55:15 GMT -6
How much do you expect to charge for the right of first refusal? I haven't heard of that before where money changes hands and a legal contract is signed. I don't see how that will make you more money in the long run than just offering the neighbor your land for $10k/ acre or an extremely high number.
If that guy has a lot of money I would not want to have any legal contract with him since legal fees could exceed the right of first refusal dollars very quickly. ive seen that where I work and it makes no difference if you are right or wrong if they are willing to spend more on legal fees than you.
|
|
|
Post by Bwoods11 on Nov 25, 2021 23:40:40 GMT -6
Just be careful on First Right of Refusal on either side…
I sold a farm to an attorney this fall, he described a colossal mess with FROR. It happened in Morris, MN and ended up costing many people $$$ and friendships. In a nutshell the farm was sold without knowing a Right had been signed . Couple years later they sued! I don’t know who won, but it was ugly !
|
|
|
Post by sd51555 on Nov 26, 2021 7:17:39 GMT -6
I wonder if title insurance would kick in, in a situation like that? I used to know an attorney for a title insurance outfit, but we lost contact a few years back.
|
|
|
Post by kl9 on Nov 26, 2021 7:29:30 GMT -6
I wonder if title insurance would kick in, in a situation like that? I used to know an attorney for a title insurance outfit, but we lost contact a few years back. I would certainly expect it to
|
|