tenant option to purchase????? HELP!!!!?

Question

I have a friend who has a commercial property bequeath to him.I believe the tenant has a option to purchase clause in the lease but my friend 1.dosen't want to sell the property and 2. the set price is Below fair market value....very below....3.there is also a addition lot that he wants to sell also with the building if it has to sell because if he's "stuck
' with the very small lot, It really won't do any service to him and become not as valuable.My question is does he have to sell the property or can he renew the lease with a current fair market value and inclued the small lot?

Answer 1

the first thing he should do is speak to a lawyer and show him the lease and whatever other information he may have.

based on what you are saying most likely your friend will be stuck. if the tenant has an option to purchase, regardless of the terms if they excersie the option it must be honored, that is the purpose of a lease and it does pass down to the new owner regardeless of how they took ownership.

good luck

Answer 2

This really should be addressed with an attorney, but I believe, unless spelled out clearly in the language of the contract, the lease expired when the lessor passed away. One of the benefits to a lease with option to purchase is the lock-in value at for purchase... again, the most important advise would be to consult an attorney or Realtor familiar with commercial and or lease- agreements