Any real estate attorneys here? Looking for a little free advice on a land purchase going sour.

[schmalts]

Was purchasing an additional acreage that adjoins my land. The old guy next door contacted me and wanted to sell me 28.5 acres. I wrote a legal offer to purchase, he accepted. I assisted him by contacting the title company, survey company, the DNR for retracting it from MFL, and paid an attorney to write the offer. Then the other neighbor has a fit and says he has first rights to it because of something written 5 years ago when he bought some from the guy. The old guy wants to get out of the deal because he thinks the other guy has to buy it. I informed the old guy there is a legal process for right of first refusals and that if this guy wants anything other than the same amount of land and at least the same price he is not obligated to take it. I have not seen the actual wording of the FROR but he delivered it to the attorney that wrote my offer. Unfortunately this attorney has no time for any of this and keeps saying i should come and sit down and he will look at it after multiple times being informed I live 3 hours away. Yes this is a small redneck town and I know I may have to get an attorney where I live. I am about ready to throw in the towel and tell the old guy he owes me for my attorney fees to date and return my earnest money and walk away. Legally I can sue him for breach of contract because he should not have signed and taken my earnest money it in the first place, but I am not going there. I want to make sure this other guy who in the past told me he only wanted a 10 acre strip doesn't snowball the old guy into thinking he has a gun to his head.

 

[Werty]

You need to pay for some legal advice, if you have the money to buy land, then you can't afford not to do it legal. Good luck

 

[turbobrick]

If I wanted the land, I'd have made the 3 hour drive ASAP, sounds like a simple first step to take.

 

[schmalts]

You need to pay for some legal advice, if you have the money to buy land, then you can't afford not to do it legal. Good luck

It's legal on my end. I had a legal real estate offer to purchase drafted by an attorney. The illegal activities may happen on the other end. Why cant the attorney talk on the phone?

 

[AvidIndoorsman]

Why cant the attorney talk on the phone?

Been there, sorry man. I imagine it’s because they think if you are there in person it will take longer, therefore more billable hours.

I also don’t understand why some banks still only accept faxes.

 

[Trial153]

I dont even know where to start...
First we have to establish that RORF is in fact binding. Meaning it had to be a signed convent between two of the three parties. The RORF had to be established before the third party laid an offer.
The owner of the asset is only obligated to make the same offer that was established by the third party.
if the RORF contract isnt fulfilled the first party, may sue. However here is the catch. The suit would be for damages and in most cases of real property that's hard to establish.
Lastly you cant confuse ROFR with a ROFO. If in fact an ROFO was established then the real property owner was contaculaly obligated to negotiate with the first party before any third party offer was established.

Now I typed this on my phone...so it probably is full of typos and makes no sense.

 

[Dinkshooter]

My buddy thought he had a right of first refusal with an old NJ farmer, he worked his balz off helping the old codger take care of the place, etc. When it came down to the dance he found out there was an earlier one. He moved to MT then, best thing that ever happened to him.

 

[Rzrbck918]

I’m not an attorney but I do buy and sell a lot of real estate. Your understanding of right of first refusal is correct. Same land same money. If he agrees you can up your offer if desired. I would strongly consider getting another attorney that will take your case seriously. Also, call the other neighbor and find out if he wants it all or just the 10 acres. Maybe you both end up with something you want. If that doesn’t work give him a good deal on a Leupold BX-4 or something. Sorry for the hassle and good luck.

 

[schmalts]

I’m not an attorney but I do buy and sell a lot of real estate. Your understanding of right of first refusal is correct. Same land same money. If he agrees you can up your offer if desired. I would strongly consider getting another attorney that will take your case seriously. Also, call the other neighbor and find out if he wants it all or just the 10 acres. Maybe you both end up with something you want. If that doesn’t work give him a good deal on a Leupold BX-4 or something. Sorry for the hassle and good luck.

If he only wants 10 acres, the 10 he wants would make the remainder not attached to mine so thats a no go. Im going sit tight and see what happens. Not going to be crushed if things don't go my way. It's a "nice to have" purchase, not a necessity

 

[NEWHunter]

I’m not an attorney but I work with them a lot and in different states - all remotely. No reason this attorney shouldn’t be able to do business over the phone. If it means that much to you and you’ve got the dough I’d get somebody else. First though, I’d want to get a look at that right of first refusal myself. It will likely give you a good idea where you stand. If it was drawn up by an attorney that will tell you something. If it was drawn up on the back of an envelope that will tell you something as well. Good luck - those legal morasses are never fun, unless you’re the attorney.

 

[bts09]

If he only wants 10 acres, the 10 he wants would make the remainder not attached to mine so thats a no go. Im going sit tight and see what happens. Not going to be crushed if things don't go my way. It's a "nice to have" purchase, not a necessity

Yeah, but the point is, if he only wants ten acres, he doesn't have the option to exercise a ROFR--even if he has a valid ROFR, he's got to match your offer, and that means identical property, identical money, identical terms of sale.

 

[squirrel]

You need two things a more responsive attorney, (or a car to go three hours) and more factual info. If you think you are a RE expert just cross the state line and you will be humbled, so any advice from outside your state is suspect. (as is what follows here) In most cases a ROFR is recorded with the deed and viewable as a public document in your county clerks office. It can be ANYTHING they agreed to and signed and had recorded. Although in most cases it would work as some above have indicated.

The point being if you don't have a copy of the ROFR in your possession you are not in the game yet, let alone on a path to win.

And you almost certainly should get your earnest money (barring some weird state law) back if the ROFR is exercised I do not believe you will have any damages due unless the time line of the ROFR has been exceeded which opens up some possibilities.

All these things should be dealt with in the various contracts if you dig deep enough.

 

[VikingsGuy]

I dont even know where to start...
First we have to establish that RORF is in fact binding. Meaning it had to be a signed convent between two of the three parties. The RORF had to be established before the third party laid an offer.
The owner of the asset is only obligated to make the same offer that was established by the third party.
if the RORF contract isnt fulfilled the first party, may sue. However here is the catch. The suit would be for damages and in most cases of real property that's hard to establish.
Lastly you cant confuse ROFR with a ROFO. If in fact an ROFO was established then the real property owner was contaculaly obligated to negotiate with the first party before any third party offer was established.

Now I typed this on my phone...so it probably is full of typos and makes no sense.

Plus, depending on notice provisions under WI law (and am not a WI lawyer) a subsequent good faith purchaser (you) may still trump the ROFR guy if he did not provide public notice prior to your binding purchase agreement. Then his only legal claim is his against seller for breach of ROFR money damages, but he has no rights to the land.

And all of these angles are why you need a local lawyer.

 

[VikingsGuy]

While based on TX law here is a decent primer on the topic. https://assets.recenter.tamu.edu/documents/articles/1907.pdf

 

[schmalts]

Plus, depending on notice provisions under WI law (and am not a WI lawyer) a subsequent good faith purchaser (you) may still trump the ROFR guy if he did not provide public notice prior to your binding purchase agreement. Then his only legal claim is his against seller for breach of ROFR money damages, but he has no rights to the land.

And all of these angles are why you need a local lawyer.

The Local Lawyer is half the problem. This guy who wrote my offer to purchase ALSO wrote the land contract that I finally got a copy of that states the ROFR is included... what a mess. I do not know if there was separate papers for the ROFR or if it is just written in the land contract. A title search might need to be done or as someone stated looking at the records. Here is the wording in the land contract "Vender to provide the purchaser the ROFR on the SE SE of section blah blah blah.. for the period of 10 years commencing on the closing date of---------. That's all it says. The 10 years time is still active. No time for how long he has to accept or refuse. Meeting with attorney monday. I just want my freaking earnest $$ back

 

[VikingsGuy]

The Local Lawyer is half the problem. This guy who wrote my offer to purchase ALSO wrote the land contract that I finally got a copy of that states the ROFR is included... what a mess. I do not know if there was separate papers for the ROFR or if it is just written in the land contract. A title search might need to be done or as someone stated looking at the records. Here is the wording in the land contract "Vender to provide the purchaser the ROFR on the SE SE of section blah blah blah.. for the period of 10 years commencing on the closing date of---------. That's all it says. The 10 years time is still active. No time for how long he has to accept or refuse. Meeting with attorney monday. I just want my freaking earnest $$ back

If Wisconsin law provides (some state do and some states don't) that a later unknowing buyer (you) prevails over an earlier right holder (the guy with the ROFR) who failed to register the ROFR with the county prior to your purchase agreement (which a title search should confirm or deny) then you win no matter what the ROFR says. It could also change whether or not in WI a binding purchase agreement is sufficient to trigger this rule or if the title must have passed at close prior to you becoming aware. If you are saying the lawyer you are talking to Monday is also the lawyer who wrote the ROFR, it may be worth talking to a different lawyer.

 

[JohnCushman]

You don't have to worry about his ROFR if you shoot him

 

[hank4elk]

You need to go to local courthouse & do a title search 1st. It will show the whole recorded enchilada.

 

[Buffs35]

What has been recorded? What does the rofr state? Everyone is different. Might depend if you are deemed to have actual, constructive or inquiry notice. You may have bona fide purchaser status.

You need a lawyer, call your local bar association for a few referrals.

 

[VikingsGuy]

From a lay perspective looks like WI is a "race/notice" state which means first bona fide good faith "conveyance" recorded wins. Not sure if a mere purchase agreement would be determined sufficient to be a conveyance under WI law, but if it was me I would take my fully signed purchase agreement (hopefully he signed your "offer") and other documents I have signed by seller and be at the country record office 5 minutes before they open on Monday and record it/them against the property of interest, just in case. Can't hurt, can only help. And if the ROFR guy has the brains he should be doing the same. Recordation is usually really cheap.