Can I maintain the rights to the cell tower lease I have but sell the land under it?

Question

We currently have a lease with a cell tower company and have a tower on our 96 acre farm. We are selling the property but dont want to lose our lease with the cell tower company.
Should I sub divide or is there a way to maintain my lease.

Answer 1

The simple answer is yes.

Real property (real estate) is technically a bundle of rights. The right to occupy a building. The right to build. The right to otherwise use the land (farm, graze, park vehicles). The right to mine. The right to the airspace above the land. A utility company that has an easement to run the water, gas and electric services across the property is an example of a right that has been somehow separated or otherwise conveyed independent of the same of the land. Likely your property came with easements if it is in a city. Rights given up sometime before you by the owner at that time.

You can sell or otherwise make available to others a subset of the full bundle. This is exactly what happens when you agree to lease some space yet retain the other rights that you hold. Someone has the right to occupy, to receive the benefits of quiet enjoyment yet you still own the airspace, you own the structure, etc.

On a more practical level any time you sell anything less than the full bundle you might find that buyers are not interested or that they will not pay much. Hence being able to legally do so is not the same as being able to receive economic value (cash) when you transfer a limited set of rights or retain specific rights.

Is there a market for what you want to do? How will you find a willing buyer? It could be as simple as listing it with the MLS through an agent or it might be very difficult.

In some cases the party with the most interest in limited use or a purchase where you retain some sort of interest will be the neighbor. They might not need the full bundle of rights for the property to be of significant value to them. Check with the neighbors to see what sort of interest they might have.

You might find that you do not need to subdivide at all. In that case you would get a lease from the new owner and sublease to the phone company. Create an option to renew your lease so that you can extend later if you find the phone company wants to extend.

Note I invest in the UK where many properties are 'sold' as a leasehold (up to 999 years). The concept is not well understand in the residential market in the US. The US commercial market would have no problems understanding how to do what you are asking as it happens all the time.

Answer 2

Wow, that can be a pretty legal problem you have, first of all, no you cannot lease something you do not own!! If you sell the land, you cannot own it therefor you cannot lease it away!!! Now careful.... unless both parties in the lease (or it's written in the lease) agree to transferring the lease to the new owner or cancelling the lease and creating a new one with the proposed new owner of the land, your stuck with owning the land the lease covers (not just the tower itself). Also, depending on you're laws from wherever you are. Your best bet is to speak to the company who leased the land from you and let them know your intentions. Secondly make sure your Broker or Agent who is helping you sell the land is VERY KNOWLEDGEABLE in the laws that your working with here. Other then that I'd stay away from an expensive lawyer, and look a paralegal for a small sit down and shoot questions at them if you start to question any third parties intentions.

Answer 3

Just like you buy land but not convey the mineral rights you could specify in your contract that you have the right to keep and maintain the cell tower and even retain the right to inspect or repair said tower. You may limit the number of interested buyers but it can be done.

Answer 4

sell everything including the lease to whoever buys the land. Show the the paperwork and give them a deal on it that wouldnt lose you too much money and would look good to them. That would save you the trouble of subdividing and surveying and all.

Answer 5

Keep the mineral rights and you keep the cell tower lease. I've sold my grocery store and sub-division and kept my mineral rights which I am currently collecting about $160.00 a month.

Answer 6

subdivide. the sale is subject to existing leases. the lease for the tower will ride with the contract. the lessee retains the lease, you lose the rent, and the buyer obtains the lease and the rent.

Answer 7

Can you do that without subdividing the property? How can you sell a lease that would be on another's property?

Answer 8

Sweetie, you cannot lease anything on property which you do not own.
I know these towers are lucrative, therefore you will have to subdivide in order to keep it.

Answer 9

once the land is sold the owner of said land can bring in a dozer if they desire. You have to own the land underneath.

Answer 10

sub divide or you will loose money!