Is an oral right of first refusal to a friend enforceable?
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Anonymous
| A friend’s elderly, childless aunt lived in her home that is now on the real estate market for over $2 million. This woman suffered a fall and is now in a nursing home, likely for the rest of her life. Over the years, a man from town frequently visited her at her home, did yard work, small repairs, delivered groceries and talked with her for long periods of time. The woman has made a will and as far as we know, this man is not mentioned. He said to my friend (the niece) when he saw the for sale sign that he has a “right of first refusal” made with the aunt and it is not in writing but she has said so over the years and in front of many different people. He said he does not intend to buy the house but this right has value and the family should come up with a money price so he will “relinquish” his right in writing. He said his right of first refusal can slow down any possible sale. It sounds like extortion. What can my friend do? |
Anonymous
|
No oral agreement is ever enforceable. Legal is legal. And legal always has to be in writing.
(I'm not even reading your story) |
Anonymous
This is not true. Lots of oral agreements are enforceable. But there is likely a statute of frauds issue here. |
Anonymous
|
An oral agreement can be enforceable. However, when my Mom died my Italian Neighbors son was getting married. She wanted house for son. Said please give me right of first refusal when you get top bid I can pay cash. All Oral but we knew her since kids. When I did realtor listing I told agent my neighbor kid wanted it. He said sure. If they top highest offer I will charge you only 1 perent. You only house free and clear and they are paying cash. Just cut me check for my time but your lawyer does settlement. I am not involved.
I said fine. Turns out we had a bidding war. My agent was only charging us 3.5 percent. We went to neighbor and said you can have it at 2.5 percent less than top price if you want. She then asked what top bid was, she almost fell down. She then said but I can do cash. I said we have cash, as is, no inspection right now and guy can give us 10 percent down today but checking with you first. Turns out she wanted it for $50K below list price and offer was $35k above list price. She said no very quickly. I thought we were honest. |
Anonymous
This. This depends on the state, but see this: https://www.schlamstone.com/blogs/commercial/2015-08-13-right-of-first-refusal-to-purchase-real-estate-subject-to-statute-of-frauds |
Anonymous
| Should the family tell the realtor there is a potential ROFR or ignore it? This man could cause a real problem if he threatens to sue. |
Anonymous
| Has anyone asked the aunt about this? |
Anonymous
No, the family is trying to keep her stress down. No one is telling this man where she is in case he tries to get her to sign something. |
Anonymous
| If he doesn't want it, isn't that a refusal? Why would he get money for that? |
Anonymous
| I’d threaten him with an elder abuse counter claim if he tries anything. |
Anonymous
| Tell him that he's a fraud and you are reporting him to the police. |
Anonymous
You need to let the staff know he is an unwelcomed visitor. If she is still independent you may not be able to have him banned, but start a conversation about what they can do. |
Anonymous
This x1000. Plus the house has been on the market for 24 hours. He obviously saw the for sale sign. He has made no offer. Even if he did have a right of first refusal, if he submitted no offer and paid no funds then he’s exercised his bogus right of first refusal anyway! |
Anonymous
DP. Agree. |
Anonymous
I thought the right of first refusal (albeit bogus) is triggered when there is an offer, not when it goes on the market. |