My fist big real estate deal! Is it enforceable?

[Dan Wells]

Hi Guys im looking to get into commercial real estate, this deal has been one of the hardest I think I will encounter, long story short someone that does not need to sell!

I got a Right of First refusal on the property for 450k similar properties are listed and have sold in the 850k range its a rare opportunity and properties do not come up often like this on the freeway at this location. Hence why I've been trying so hard.

Is a ROFR bulletproof? ive invested a ton of time, and the term is 4 years, I don't want to worry . Was done by an attorney and everything. 

BUT can it be fought in court? 

[Jay Hinrichs]

Originally posted by @Ned Carey:

@Jay Hinrichs makes a great point. Having it on record will scare away most title companies and stop another deal dead. 

I had a memorandum of contract recorded and it saved my my biggest deal ever. I got word another buyer was trying to get a deal I had under contract. I quickly recorded the memorandum and immediately called the title company.  I could here the frustration in his voice as the attorney said he wouldn't go any further with the deal.

 I just went through this on a big land bank deal we have here in Oregon..  long story short but the owner of the land we have the option on for 4.4 million.. got an offer for 8 million.. and calls me and says hey I need you to sign a quit claim deed removing your option from title.. well that would have wiped out 1.2 million I have in the property.. the buyer is a big player in this market.. but we held firm and the buyer dropped out.. But this was a 30 page lease option agreement written and recorded by top flight attorneys here in Oregon.. so it did have some meat and teeth..  the buyer still could have closed if they wanted to leave that exception on title .. then try to litigate to remove us.. thankfully he did not go that far.  I am going to let the dust settle then after the first of the year go back to this buyer and see if I can put the deal together at the 8 million.. our strike price is 4.4 as we sit today.. the seller wanted to just boot us.. and keep the whole 8 million..  :)