Any options?

One tenant has a right of first refusal. I forwarded a registered letter to all 5 commercial retail tenants advising them that I am selling the property and if they were interested, they must contact me withing 10 days. No one did. Now that I have a contract the one tenant has decided he wants the right of first refusal that is in his contract and has 30 days to respond. Is their any way out?
In Selling Property - Asked by Frank D. - Oct 22, 2011
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Answer(s)

Carl S.
Broker/Agent
Bluffton, SC

Frank - it is time to talk to your attorney - you should have read the contract they had with you before you sent your letter - good luck!

Oct 22, 2011
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Tai N.
Broker/Agent
City Of Industry, CA

I agree with Carl below, consult with a commercial real estate attorney.

Oct 26, 2011
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Jay Z.
Broker/Agent
Phoenix, AZ

It's a good lesson. No more "right of first refusals" in your future realty dealings.
There is a good chance that you can "call his bluff ". The tenant probably can not get a loan to buy your property. You could ask your real buyer if she can wait 30 days while you deal with this tenant. Tell the buyer that you will reward her for her patience.
If you really want to get the tenant to remove his right, you have to buy it back from him. That's not hard to do. Most tenants will accept cash to release their "right of refusal". Be generous and this problem can be solved with money.

Oct 27, 2011
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

talk with an attorney but typically the tenants right should be clearly spelled out in the contract/lease along with milestones/ performance targets that must be met (ie: able to fund within x days, etc....). Good luck with your transacton

Dec 25, 2011
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George M.
Owner/Investor
Rahway, NJ

Right of First Refusal
The right of first refusal, also known as the "last look" provision, gives the holder the right to review all other offers on a business or share of a business. The holder of the right can buy the business simply by matching the highest offer on the table. Businesses partners often grant each other the right of first approval. In those cases, when a partner wants out of the business, the remaining partners can prevent a newcomer they do not know from buying a stake in the firm.

Oct 5, 2012
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