right of first refusal

[dfarms11]

I was thinking of ROFR to purchase. hadn't thought of one oriented to renting but that's a good idea too.

landlord can sell land that's under a rental agreement, but the gentlemanly thing to do (if no bad blood) is offer it to the renters first, and if sold to someone else, I believe by law the renter's right to lease the land from the new owner continues for the rest of the term.

I'd really like to know this for sure. I've heard it can go either way. Not certain which is true.

[Rinker]

I was thinking of ROFR to purchase. hadn't thought of one oriented to renting but that's a good idea too.

landlord can sell land that's under a rental agreement, but the gentlemanly thing to do (if no bad blood) is offer it to the renters first, and if sold to someone else, I believe by law the renter's right to lease the land from the new owner continues for the rest of the term.

That's correct, the lease is maintained. A new lease is signed by owner and renter for the rest of the duration of the original lease. The only legal way out is for the renter and new owner to write up a termination of the lease agreement. We just went through this process a few months back.

[poorboy]

It would be a poor land owner who would ever put a right of first refusal in a contract as it does not let the land owner sell to friends or family for values below current market price.

You legally can not roll the land to your heirs, without letting the “first refusal” guy have a chance to buy it at that price.

Most land owners don’t even realize the problem. Same as land owners who provide a lease with an option to extend it. The only reason a renter would extend a lease is if rents are the same or higher. Again bad deal for the land owner.