Right of First Refusal

[Dale Sr]

What is the name of your state? PA

I’m considering purchasing a piece of RE. The seller is requiring a right of first refusal clause be included so they could have a chance to repurchase the property in the future should I choose to resell it.

What effect would this clause have on my ability to subdivide this property into multiple lots if I wanted to do so in the future?

 

[adjusterjack]

Depends on the EXACT wording of the clause.

If you don't want the clause to affect your ability to subdivide the property into multiple lots you'd better write the clause so it doesn't.

Have a lawyer review it and draft it to protect your interests.

Avoid any ambiguity that will have to be adjudicated later at an astronomical cost in lawyer fees.

 

[Dale Sr]

astronomical cost in lawyer fees.

Oh the drama….

 

[LdiJ]

Oh the drama….

It is not so much the "drama" as the potential for problems down the road. There is obviously a reason why the seller wants a right of first refusal. Most likely that reason has something to do with the seller not wanting the property to be changed in some way. It is possible that subdivision is exactly what the seller is hoping to stop by putting the right of first refusal clause into the sale.

Personally, I wouldn't buy a property that had a right of first refusal clause built into the sale. However, it is up to you whether or not you want to take that risk, however I certainly would not do it without having my own attorney on board to make sure that any right of first refusal clause wouldn't stop me from doing anything that I wanted to do.

 

[Dale Sr]

Thanks for the “I don’t know”.

 

[LdiJ]

That for the “I don’t know”.

Huh?

 

[quincy]

What is the name of your state? PA

I’m considering purchasing a piece of RE. The seller is requiring a right of first refusal clause be included so they could have a chance to repurchase the property in the future should I choose to resell it.

What effect would this clause have on my ability to subdivide this property into multiple lots if I wanted to do so in the future?

The right of first refusal is likely to prevent your ability to subdivide the property in the future, but the wording of the clause would need to be analyzed to better determine this - and analyzing legal agreements falls outside the scope of this forum.

I suggest you either decline to purchase the property with that condition in the agreement or work with an experienced real estate attorney to protect your ownership rights should you wish to alter the property in the future.

I, personally, would not sign a purchase agreement with a right of first refusal clause in it.

 

[zddoodah]

What effect would this clause have on my ability to subdivide this property into multiple lots if I wanted to do so in the future?

Right of first refusal can be written in NUMEROUS different ways that may have numerous different effects. Since you have told us only that this is a hypothetical situation at this point, there is no way for anyone here to tell you anything more or better than what "adjusterjack" told you.

 

[Dale Sr]

Right of first refusal can be written in NUMEROUS different ways that may have numerous different effects. Since you have told us only that this is a hypothetical situation at this point, there is no way for anyone here to tell you anything more or better than what "adjusterjack" told you.

And since it hasn't been written yet, I cannot provide the language. All I can tell you is that I am considering buying a piece of land and the seller had indicated that they will want a "Right of First Refusal" included as part of the deal. I'm not looking to learn every legal nuance to such a clause. I was only looking to have my original question answered.

It is clear that no-one here can answer that question (for the reasons many have stated) so as far as I am concerned the thread can be closed and filed under "WE DON"T KNOW".

 

[Zigner]

And since it hasn't been written yet, I cannot provide the language. All I can tell you is that I am considering buying a piece of land and the seller had indicated that they will want a "Right of First Refusal" included as part of the deal. I'm not looking to learn every legal nuance to such a clause. I was only looking to have my original question answered.

It is clear that no-one here can answer that question (for the reasons many have stated) so as far as I am concerned the thread can be closed and filed under "WE DON"T KNOW".

You will get the same answer ANYWHERE. You have an idea of the question, but without the underlying matter (the wording of the RoFR) being known, there is no way anyone can answer.

 

[quincy]

And since it hasn't been written yet, I cannot provide the language. All I can tell you is that I am considering buying a piece of land and the seller had indicated that they will want a "Right of First Refusal" included as part of the deal. I'm not looking to learn every legal nuance to such a clause. I was only looking to have my original question answered.

It is clear that no-one here can answer that question (for the reasons many have stated) so as far as I am concerned the thread can be closed and filed under "WE DON"T KNOW".

I have notified the moderator that you want your thread closed. I am sorry we cannot give you a definitive answer to your question. We just don’t have the necessary information to advise you any differently than we have.

If you have your heart set on this particular piece of property, and if the seller of the property is adamant about having a “right of first refusal” clause in any purchase agreement, I recommend you sit down with a real estate attorney to review the seller’s proposed clause prior to signing any agreement. The attorney review can at least provide you with a list of the problems you could face in the future with the clause as written. I don’t recommend going into the sale blindly.

Good luck with whatever you decide to do.

 

[Dale Sr]

You will get the same answer ANYWHERE. You have an idea of the question, but without the underlying matter (the wording of the RoFR) being known, there is no way anyone can answer.

Exactly, and since here is someplace, no-one here knows, as I said.

Thanks for confirming.