right of first refusal

[Marusko]

what's it worth? we've had land offered to us to buy but lost it due to rofr. want to talk to landlords about getting one in place.

[katoe]

We always put right of last refusal in the lease. Farmers in our area expect that the renter will have that option. Farmers around here always look at it as away to give the renter that option for all the land improvements he or her has done. I think in the future its important to have that option in a lease as non farming children start inheriting land. We are lucky to have all landlords that farmed and rented land themselves so are always in agreement . Some people and im sure is quite common with other farmers and landlords dont feel the need to even have a lease but it sure is when a landlord passes away. Anyway my 2 cents worth.

[blackpowder]

If you can get it, great.

[Old Cowzilla]

In this area it's also another method of bidding up the price of land. Renter wins bid and flips a week later. Lawyers love the extra work and so called winning bidders are left in the dark for 30 days. All provides lots of coffee talk chatter for a few weeks

[beaverdam]

Are you speaking about a rofr, to match a competing rental offer at the end of a cash rental agreement?(land to rented again for another term.)

or are you thinking of a rofr to match a purchase offer at the end of a cash rental agreement?

How do most posters here view the landlord's right to sell land, before a cash rent agreement term has ended?(say 1yr remaining on a 3yr rental lease?)

Is it fair for the landlord to sell his land, (with 1 rental year left),,, if there is a rofr clause to purchase?

Most rental contracts here, have a No Sublet clause, if you rent it, you farm it.

[Partners]

Many renters here have lost the land they farmed for yrs..
That was the 30 dollar an acre yrs.

[blackpowder]

I think both are good. Anything for a little edge. If honored.
I don't know how many in this area do it. I don't have any myself. I've had landlords refuse it. Half mine don't want to see a piece of paper. I've had landlords walk from a signed document anyway.
The market gets more competitive every year if you can believe it. I can see more formal leases done as the generations roll over.

[seldomseen]

I have never signed a rental agreement.
Just a verbal agreement with landlord and a mutual agreement to give one each other one year’s notice if we wanted any changes.
Ended up buying all the rented and never needed a right of first refusal.
Worked for me and I am sure when I become landlord it will be the same way.

[Marusko]

Are you speaking about a rofr, to match a competing rental offer at the end of a cash rental agreement?(land to rented again for another term.)

or are you thinking of a rofr to match a purchase offer at the end of a cash rental agreement?

How do most posters here view the landlord's right to sell land, before a cash rent agreement term has ended?(say 1yr remaining on a 3yr rental lease?)

Is it fair for the landlord to sell his land, (with 1 rental year left),,, if there is a rofr clause to purchase?

Most rental contracts here, have a No Sublet clause, if you rent it, you farm it.

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.

[Marusko]

In this area it's also another method of bidding up the price of land. Renter wins bid and flips a week later. Lawyers love the extra work and so called winning bidders are left in the dark for 30 days. All provides lots of coffee talk chatter for a few weeks

and a good way to spoil future land deals with the neighbours. have seen that here too.

[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.