1st Right Of Refusal
I currently have a house rented that I plan on listing for sale through a realtor. My tenants lease is up Jan.15th but I have (by word of mouth)told him he could roll it over for one more month until Feb. 15. to give him more time to find a new place to live.
The realtor sent me a "exemption from tenant's right of first refusal" letter to send to the tenant. It basically says that since the house is listed with this real estate agency, the provisions of the Baltimore Code granting a "right of first refusal" for the purchas of the property, do not apply. The tenant may negotiate for purchase of the property on the same basis as other possible buyers.
My question is this: am I supposed to send this letter to the tenant or do I send him a regular "1st right of refusal letter", give him 30 days and then list the house and send the letter from the realtor? Also, if I send a "1st right of refusal" letter 1.) where can I find a copy of it and, 2.)can the realtor list the house simultaneously?
Thanks in advance!
Not sure why you want to list thru a realtor, as this is CREI, but ok! I'm not sure a verbal will hold up in court, but if you did tell the tennant you would do that, then you should hold your end of the bargan. At least give them the option again verbally. You can do all the legal things you want, but remember, if you plan to do this investing thing for a while, your reputation could get messed up doing things like that. Guess it's something you have to weigh in your mind. Also, put yourself in the tennants shoes. They may be counting on you keeping your word. Not sure if this helps. But, you did ask...Good luck
Quote:
On 2003-12-29 15:18, tanyikaj wrote:
I currently have a house rented that I plan on listing for sale through a realtor. My tenants lease is up Jan.15th but I have (by word of mouth)told him he could roll it over for one more month until Feb. 15. to give him more time to find a new place to live.
The realtor sent me a "exemption from tenant's right of first refusal" letter to send to the tenant. It basically says that since the house is listed with this real estate agency, the provisions of the Baltimore Code granting a "right of first refusal" for the purchas of the property, do not apply. The tenant may negotiate for purchase of the property on the same basis as other possible buyers.
My question is this: am I supposed to send this letter to the tenant or do I send him a regular "1st right of refusal letter", give him 30 days and then list the house and send the letter from the realtor? Also, if I send a "1st right of refusal" letter 1.) where can I find a copy of it and, 2.)can the realtor list the house simultaneously?
Thanks in advance!
"Not sure why you want to list thru a realtor, as this is CREI"
What? Creative real estate investors do not use Realtors?
Wrong.
_________________
Gregg Fous
Investor/Developer
"Developers Make it Happen"[ Edited by GFous on Date 01/01/2004 ]
Let me clarify. My issue is not with the one month rollover. The issue is with the first right of refusal. What type should I send based on the info I gave in the first message?
What exactly is a Right of First Refusal?
Normally in a situation where an association will have the first right to buy a property at the price a ready, willing, and able buyer is ready to purchase it at.
Not very common in private deals - because normally a seller would not sell that option to someone - it makes it very difficult to get serious offers because you must disclose thie First Right to your buyer - and he is not going to want to go through an offer and due dillignece just so your other buyer can excercise his option
[addsig]
Gfous,
If you want to use a quote, please use the whole thing before you feel compelled to slam someone elses opinoins. I thought this board was for people to post their opinions to help each other learn. And instead of dogging someones response, as a courtesy, please explain why you disagree. That would be far more helpful to those of us who may have made a mistake. I don't believe I said CREI don't use Realtors, that was your assumption. Please remember, these posts sometimes come across a bit brass because we are using only words that don't display much feeling. I didnt say that we dont use Realtors, I just stated I wasn't sure why we should in that situation. Thanks and Happy New Year.
Quote:
On 2003-12-29 18:12, GFous wrote:
"Not sure why you want to list thru a realtor, as this is CREI"
What? Creative real estate investors do not use Realtors?
Wrong.
_________________
Gregg Fous
Investor/Developer
"Developers Make it Happen"
<font size=-1>[ Edited by GFous on Date 01/01/2004 ]</font>
pejames-
My apologies if you are offended, this was not my intention. I am not in the habit of slamming posts or making quick judgement. Sorry.
There are many many ways to be creative in investing in real estate, and I would have to say that most of them can be aided by a good agent. Whether you are buying or selling. The operative word here is "good".
I
Gfous,
Apology accepted, I know it is sometimes hard to express in just text. I also agree with you in that GOOD is the key to the whole thing with Realtors. I assure you, I am not against working with them, I also have a couple that I work withand they are "Good". I feel that I have to keep all avenues open to assure my success in CREI. BTW, I am learning a great deal from your posts too! Thank you for sharing you knowledge with us here.
Quote:I currently have a house rented that I plan on listing for sale through a realtor.
The realtor sent me a "exemption from tenant's right of first refusal" letter to send to the tenant. It basically says that since the house is listed with this real estate agency, the provisions of the Baltimore Code granting a "right of first refusal" for the purchas of the property, do not apply. The tenant may negotiate for purchase of the property on the same basis as other possible buyers.
My question is this: am I supposed to send this letter to the tenant or do I send him a regular "1st right of refusal letter", give him 30 days and then list the house and send the letter from the realtor? Also, if I send a "1st right of refusal" letter 1.) where can I find a copy of it and, 2.)can the realtor list the house simultaneously? tanyikaj,
Since your tenant only has about 45 days left on his lease (including the holdover period), you might be better off giving your tenant a termination letter now. List the property after the tenant has vacated, and you have had a chance to clean and make the minor repairs that will show the property in its best light.
I am not aware of any provision in your state's landlord-tenant laws requiring a right of first refusal.
It may be that your real estate agent is citing some provision of your local county or municipal landlord tenant law which specifies your requirement to give your tenant a right of first refusal. If so, then you also need to know just what this "right" entails. You need to know whether you must simply offer to sell the property to your tenant before you list the property to sell on the open market, or, must you give your tenant the right to match or exceed any acceptable offer before you enter into a contract for sale with another party.
Apparently, your real estate agent is suggesting that you send a letter to your tenant (to sign and send back to you) which waives his right of first refusal. I am only guessing here, because we have not seen a copy of the letter and do not know your local ordinance.
I suspect that the agent is drafting the letter rather than resorting to some legal form. Furthermore, I suspect that the agent is trying to protect her commission in the event the tenant buys the property.
Instead of going through all this and only guessing that the tenant may agree to waive his right of first refusal, I suggest you just tell the tenant that you are planning to put the property on the market when the lease expires and give the tenant a chance to buy from you before your listing agreement goes into effect. The "right of first refusal" may not be in force after the tenant vacates the property.
Dave T.
Here I am all set to pontificate and you gave the right and correct answer.
Go over to the tenant and say to him. Hi thanks for being a good tenant. Because you are such a lovely person. I wish you to know that I am going to sell this house as soon as I throw you and your family into the middle of the street. However. Would you like to buy this property and just go on living here? If yes nod your head if no wave your head.
And take it from there. Work it out, make a deal or terminate his interest and confirm his onward and outward progress to the street. There was not that fun. Just what Dave said.
If he decides not to buy. You might if you like to play games have him sign a statement to the fact that he is moving, he hates the house and wants nothing more to do with any of you. Whatever.
Tis done and on you go to even better occasions.
Lucius
It sounds as though their is a real estate law/code in your state or locality that automatically gives a "right of first refusal" to the tenants. The code may allow a 60 or 90 day period where the tenant has the "right" to make the purchase over and above any other buyer. If that is the case the exemption letter serves only to protect your real estate agent's commission and makes sure that another buyer can step in right away and not have to wait for the right of first refusal period to be up. It doesn't sound like this is the eviction letter. Is there anything on there that states when your tanant has to move?
First of all, talk to your agent, ask what the letter is and what it's purpose is. Then tell the Realtor that your tenant will be staying until Feb. 15th. They can call the tenant and make arrangements to show the house at a convenient time or perhaps you want to tell the Realtor not to start showing it until the tenants are gone. You call the shots. You're the seller!