In need of QUICK deal advice

[Jude Hughes]

Well BP, I'm in a pickle.

I stated the year by submitting an offer on a 1913 local historic home I viewed a few days before New Years. It has been converted to commercial, and my plan is to use the first floor as my office, and the second as three separate office rentals. The area is really changing, with Urban Renewal funds sparking revitalization and new construction (like 5 story modern condos). Here's how the deal went south:

I viewed the home, and was informed that the cell tower in the rear was on a separate lot, and that the seller planned to keep the rents. When the lease expires in 2-3 years, the plot would revert back to the current owner of the home (me, hopefully). It rents for $800 p/m.

I offered on the property, 20% down, seller carry on the rest at 4.75 with 20 year amortization. A little back and forth and we settled out and proceeded. Next, the title report came in. The report showed that the lots were not divided, and I would be purchasing the land the tower was on as well as the building, and therefore responsible for the taxes on both. Next, the cell tower lease agreement came in, which states the lease runs with the land, and with 10 years remaining. I confirmed with title, and they explained that they informed the sellers agent of the situation. We called the sellers agent, no answer. 2 days before the inspection, we called again and asked if we should postpone or cancel the inspection. He was unaware of the cell tower situation, and we explained it to him, specifically stating the land was coming along with the deal, and the lease runs with the land. Therefore, the rents would come to me, not his seller. He said he would let her know. We reminded him to call back if there was an issue and we needed to terminate. Well, no call and we performed the inspection. About 20k more than expected in repairs, but now we have the cell tower, making the deal more attractive. We call title to set the closing appointment, and find that the seller still wants the rents. We call the agent, and he states they are drawing up terms with a lawyer for me to sign allowing her to keep the rents from the tower. Closing is supposed to be this Friday.

I like the property, and I want the property. I also liked the idea of cell tower rents now or in 3 years, or the removal of the tower so I can build a maintenance shop in its place. I also feel misled, where they dodged calls until after the inspection, and am feeling a bit cut out while they have a lawyer draw up some nonsence contrary to their signed lease with the tower company, and for many more years than they disclosed.

I have had moments where I want to terminate, to moments where I want to go for lis pendens/ specific performance.

What would you do?

[Charlie Fitzgerald]

I'd either get my attorney to compel them to complete the sale of the parcel including the cell tower in accordance with its terms of transfer with the sale, or I would cancel and walk and file an action for recovery of costs and breach of contract and bad faith dealing.