first right of refusal has me frazzled

i live in wisconsin.i purchased a home with property 8 weeks ago. last week i received a letter from the neighbors lawyer stating he has first right of refusal. the neighbor owns a campground next to my property and would like access to my 7 acre pond which was part of the property i purchased. i understand he got screwed by the seller as well as i did since neither the seller nor his real estate agent mentioned that there was a right of first refusal on this property. the bank missed it on the title report and here i sit with a home that doesn't seem like it will become mine. of course i am still making payments for the loan on my purchase that really isn't going to be mine. now what do i do? can i sue the real estate agent? i will sue the seller, but doesn't sound as though he has much.!! is there any hope that this property will still become mine in the end?? help!!

[HomeGuru]

If there is nothing recorded on title with respect to the first right of refusal then the neighbor must sue the Seller.

It was on the title, however the seller failed to mention that little bit of info to us and his real estate agent took his (the sellers) word for it that the campground was no longer interested in this property. Does the real estate agent have the responsibility to tell us and more importantly, check to make sure it has been signed off the register of deeds?? I am assuming I will sue the seller and in return he will sue the real estate agent who worked for him?? What a mess!!!!! Thank you for replying!!
ljsskidz

[HomeGuru]

Then how come escrow did not notify you of the recorded encumbrance?

That is a very good question!! I am hoping that you are asking why the bank missed it on the title report. The answer I got was on the "quickie" copy the bank gets before the full report,( the one they base the loan on), I was told that usually something like the first right of refusal is on the second page or right there listed with the liens. Mine was on the first page listed where the selling transactions are."a" bought it from "B", "B and C" have a first right of refusal, and "B" sold it to "D" which is me!!Now that the title company was in the process of taking care of the title, they noticed the error on the banks part and the sellers part. The one thing I really need to know in this mixed up mess, is who can I legally go after?? The realitor and seller both knew of the first right of refusal. How did they think they could sell this to anyone and not take care of that part?? How come it seems like everyone is saying no one had any legal responsibility?? I would have put a higher offer on the property if i knew it was up for grabs by someone else first. Thank you for being so patient with me. I am explaining this the best I can!!
ljsskidz

[HomeGuru]

You have recourse against the Seller and the real estate agent for the Seller and he escrow company. Where is your agent? If you had an agent, your agent may also be liable. The escrow officer should have explained the contents of the title report to you and had you sign the report. The attorney for the bank should have also reviewed the title report and raised a red flag with the option agreement on title.