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View Full Version : Life Well this sucks


The Bad Guy
06-30-2010, 02:59 PM
My wife and I have been looking for building lots for about a year now. We found one on Monday, completely flat and completely cleared in the town we want to live in. It was reasonably priced, which shocked me because lots go in this area for close to 50-60 grand for small lots.

So we submit our offer, which was 100 above asking price. Seller calls our agent to tell her that our offer is the one he wants to accept, however there's a problem.

He just sold the house on the other side of the land 2 months ago. He told the people who bought the house that they could also buy the land next to their house before he listed it, but they declined. However, in the original contract they got right of first refusal so he had to ask them again if they wanted the land.

This time, they accepted.

I'm beyond pissed. I understand about the contract, but if they refused 2 weeks ago before he listed the land, doesn't that constitute right of first refusal?

Anyway, it sucks because it was in our price range, and most of the lots in this area aren't.

Just had to vent.

Dicky McElephant
06-30-2010, 03:04 PM
I would assume that it them turning it down the first time.....it would be first refusal.

I'm not a lawyer though.

Frazod
06-30-2010, 03:06 PM
When they turned it down initially did they sign anything, or just verbally communicate their intentions?

vailpass
06-30-2010, 03:07 PM
I would assume that it them turning it down the first time.....it would be first refusal.

I'm not a lawyer though.

Right of first refusal is not activated until the seller has come to terms with a potential buyer. The holder of the right of first refusal then has the opportunity to purchase the same property at the same terms that were agreed upon between seller and potential buyer.

DaFace
06-30-2010, 03:07 PM
Right of first refusal is not activated until the seller has come to terms with a potential buyer. The holder of the right of first refusal then has the opportunity to purchase the same property at the same terms that were agreed upon between seller and potential buyer.

Yup.

Monty
06-30-2010, 03:08 PM
Right of first refusal is not activated until the seller has come to terms with a potential buyer. The holder of the right of first refusal then has the opportunity to purchase the same property at the same terms that were agreed upon between seller and potential buyer.

This.

It sucks, but I'm sure another, better property will come along. :)

vailpass
06-30-2010, 03:10 PM
Sorry to hear it BadGuy. Now you know what to ask before you bid.

The Bad Guy
06-30-2010, 03:17 PM
Sorry to hear it BadGuy. Now you know what to ask before you bid.

Thanks. Yep, I will make sure to ask about all this. My agent said this was a pretty unique sitaution so hopefully I never come across this again.

bevischief
06-30-2010, 05:27 PM
Have you talked with Chad?...

The Bad Guy
06-30-2010, 05:48 PM
Have you talked with Chad?...

If Chad lived in PA, then I would have talked to him.

Fish
06-30-2010, 05:56 PM
Why don't you just burn down their house?

MIAdragon
06-30-2010, 06:01 PM
Thanks. Yep, I will make sure to ask about all this. My agent said this was a pretty unique sitaution so hopefully I never come across this again.

Id wait and hope something falls through with their financing, you never know.

Ceej
06-30-2010, 06:03 PM
Mr. Plow will have an extra lot next to his trailer for you in Hutchinson, Kansas! :)


But, in all seriousness, that sounds shitty. Sorry.

milkman
06-30-2010, 07:04 PM
I'm really disappointed in you BG.

I'd have already tainted their water supply with anti-freeze.

RedNFeisty
06-30-2010, 07:48 PM
Right of first refusal is not activated until the seller has come to terms with a potential buyer. The holder of the right of first refusal then has the opportunity to purchase the same property at the same terms that were agreed upon between seller and potential buyer.

Talk to the property owner, if the owners of the house do not want to pay what you are willing to pay, you may be in the clear. Or like someone else mentioned maybe the financing will fall through, you know that whole debit to income ratio.

Valiant
06-30-2010, 08:22 PM
Talk to the property owner, if the owners of the house do not want to pay what you are willing to pay, you may be in the clear. Or like someone else mentioned maybe the financing will fall through, you know that whole debit to income ratio.

Yeah, do they have to pay what you were offering??

If not have your wife bid higher seperately and jack the price up.. If they balk have her walk away and buy it at the cheaper price..

No idea if that will work though..

vailpass
06-30-2010, 08:51 PM
Yeah, do they have to pay what you were offering??

If not have your wife bid higher seperately and jack the price up.. If they balk have her walk away and buy it at the cheaper price..

No idea if that will work though..

That's a good way to get a visit from the police.

doomy3
06-30-2010, 09:40 PM
Yeah, stuff like this sucks. Basically, they had an option to buy in their original contract that didn't come into effect unless someone was ready to perform on a contract. Once you were ready to perform, they had a kick out option. Either they close on that lot right away and perform, or else they can sell it to you. I hate shit like that.

doomy3
06-30-2010, 09:42 PM
Yeah, do they have to pay what you were offering??

If not have your wife bid higher seperately and jack the price up.. If they balk have her walk away and buy it at the cheaper price..

No idea if that will work though..

Probably not. Typically, there is a price already agreed to in their contract. They have basically said they want the property, in kind of a contingency, and there would already be a selling price in that contract. It makes no difference what TBG was willing to spend at that point as the contract has already been agreed to in the option to buy.

Dayze
06-30-2010, 10:25 PM
Antifreeze......problem solved.

The Bad Guy
06-30-2010, 11:48 PM
Yeah, do they have to pay what you were offering??

If not have your wife bid higher seperately and jack the price up.. If they balk have her walk away and buy it at the cheaper price..

No idea if that will work though..

According to the seller's agent, they have to match my offer.

DaFace
06-30-2010, 11:53 PM
According to the seller's agent, they have to match my offer.

I don't know about your current context, but that's typically the way I've heard the phrase used. They have the right to jump in, but they have to match what the seller would get elsewhere. Otherwise, they might as well just buy it in the first place.

Lzen
07-01-2010, 09:05 AM
Have you talked with Chad?...

You called?

Omaha
07-01-2010, 09:13 AM
There's an empty lot next to my place. I really wish someone would build on it. The weeds from the lot are taking over my lawn. I assume you're not up for a huge commute from Omaha?

DJ's left nut
07-01-2010, 09:37 AM
Pretty standard practice w/ a right of first refusal in a down market.

The neighbors were just letting someone else set the market for them, now they'll buy it.

If you really want it, offer the neighbors a little bit of jack to 'buy them out' of their contract right. I don't know what kind of figures you're talking about, but it wouldn't hurt to see if you pay them off to keep them from exercising their option.

Most of the time a right of first refusal is a financial maneuver more than a pure land-grab.

Fat Elvis
07-01-2010, 09:58 AM
If you really wanted the land, you shouldn't have nickle and dimed on the offer. The neighbors intended to buy the land all along, but they wanted to see what the market would bear. That is why they put a right of first refusal in the contract. They could of paid asking price from the start, but they were smart about it. If the seller had accepted an offer for $5K below the asking price, then the neighbors would of gotten a really good deal. Since you only bid $100 over the asking price, they basically got the land for asking price.

Good luck in your search.

Simply Red
07-01-2010, 10:03 AM
Skip Towne, maybe? :p

Simply Red
07-01-2010, 10:04 AM
that does suck though, sorry that happened.

Demonpenz
07-01-2010, 12:11 PM
it will get squared away sounds like you worked hard enough

Sweet Daddy Hate
07-01-2010, 12:14 PM
The Deal Is Done!

Realbaddog
07-01-2010, 12:56 PM
My guess is that you wouldn't want them as neighbors next door anyway....... You will find a better deal.........keep looking.

Simply Red
07-01-2010, 12:57 PM
The Deal Is Done!

ROFL

The Bad Guy
07-01-2010, 01:37 PM
If you really wanted the land, you shouldn't have nickle and dimed on the offer. The neighbors intended to buy the land all along, but they wanted to see what the market would bear. That is why they put a right of first refusal in the contract. They could of paid asking price from the start, but they were smart about it. If the seller had accepted an offer for $5K below the asking price, then the neighbors would of gotten a really good deal. Since you only bid $100 over the asking price, they basically got the land for asking price.

Good luck in your search.

Nickel and diming in my area is offering well below asking price. My offer was the only one that came close and exceeded the price. While it was a nice lot that was immediately building ready, it would be sheer lunacy for me to offer a lot over asking price immediately. It has it's limitations though as it was only 1/5th of an acre and an odd shaped lot.

My dad's friends know the couple who bought the house had the chance to buy it for substancially less than I offered. They ended up paying more for it.

The Bad Guy
07-01-2010, 01:38 PM
Pretty standard practice w/ a right of first refusal in a down market.

The neighbors were just letting someone else set the market for them, now they'll buy it.

If you really want it, offer the neighbors a little bit of jack to 'buy them out' of their contract right. I don't know what kind of figures you're talking about, but it wouldn't hurt to see if you pay them off to keep them from exercising their option.

Most of the time a right of first refusal is a financial maneuver more than a pure land-grab.

They bought it to build a pool on. They have no interest in re-selling it.

DJ's left nut
07-01-2010, 01:44 PM
They bought it to build a pool on. They have no interest in re-selling it.

Ah.

Well that's just strange then. WTF were they doing when they had a chance to buy it cheap?

Sorry boss, that kinda sucks.

The Bad Guy
07-01-2010, 01:47 PM
Ah.

Well that's just strange then. WTF were they doing when they had a chance to buy it cheap?

Sorry boss, that kinda sucks.

They didn't think he'd get 30 for it. They called his bluff and lost.

I can at least take some comfort in that.

HemiEd
07-01-2010, 02:09 PM
Why don't you just burn down their house?

Maybe Skiptowne had already threatened this action.

vailpass
07-01-2010, 03:40 PM
They didn't think he'd get 30 for it. They called his bluff and lost.

I can at least take some comfort in that.

Tell the seller to call you if the deal falls through then wipe that property out of your mind. Go find the property out there that you two will like even more; the one that in the future will make you say "damn I'm glad we didn't buy that other piece of land."

teedubya
07-01-2010, 03:53 PM
Look at it like this... at least you don't have to live by these douchebags for 30 years.

The Bad Guy
07-01-2010, 05:35 PM
Tell the seller to call you if the deal falls through then wipe that property out of your mind. Go find the property out there that you two will like even more; the one that in the future will make you say "damn I'm glad we didn't buy that other piece of land."

Already done my friend. I told my agent to let me know if something falls through, if not, I'll come out on top.

My brother's friend's mom has a piece of land twice the size that i've inquired about. It's not on the market, and she offered it to my father in law last year for just 1k over what she paid according to the assessor's records I found, so hopefully she's desperate and motivated to sell now. Since I have cash on hand, that might be worth something to her.

The Bad Guy
07-01-2010, 05:35 PM
Look at it like this... at least you don't have to live by these douchebags for 30 years.

Excellent point.

RINGLEADER
07-01-2010, 05:52 PM
My wife and I have been looking for building lots for about a year now. We found one on Monday, completely flat and completely cleared in the town we want to live in. It was reasonably priced, which shocked me because lots go in this area for close to 50-60 grand for small lots.

So we submit our offer, which was 100 above asking price. Seller calls our agent to tell her that our offer is the one he wants to accept, however there's a problem.

He just sold the house on the other side of the land 2 months ago. He told the people who bought the house that they could also buy the land next to their house before he listed it, but they declined. However, in the original contract they got right of first refusal so he had to ask them again if they wanted the land.

This time, they accepted.

I'm beyond pissed. I understand about the contract, but if they refused 2 weeks ago before he listed the land, doesn't that constitute right of first refusal?

Anyway, it sucks because it was in our price range, and most of the lots in this area aren't.

Just had to vent.

Depends on what their contract says obviously, but this sounds more like a first and last refusal. Then again, their rights may not manifest until a price is determined. I'm not an attorney but if this wasn't disclosed you may have a case against the seller, though I'm not sure what your damages would be.