Now Accepting New Clients!

A right of first refusal, or option to purchase, must be exercised during a lease term

The court held that the trial court did not err by granting summary disposition for the defendants-bank and buyer in the plaintiffs-lessees' action to enforce a right of first refusal to purchase the leased property. The bank initiated foreclosure proceedings on the property. The lease was later amended and the amendment included a right of first refusal to purchase the property. The bank purchased the property at a sheriff's sale, and then sold it to defendant-Verstraete, who tried to evict plaintiffs. The trial court held that he was not a bona fide purchaser because he had notice of plaintiffs' lease with the prior owner, and was bound by the terms of the lease. Plaintiffs sued, alleging the bank breached the lease by failing to provide them with notice of any purchase offer to allow them to exercise their right of first refusal. The trial court found that there was "nothing in the express terms of the lease preventing the bank from selling the property" during the original lease term, and that the claims against Verstraete "were based on the flawed premise that the sale of the property to him by" the bank violated the right of first refusal. On appeal, the court held that the lease only granted plaintiffs "an option to purchase the 'residence during the lease term period,'" and did not "restrict the owner's right to sell" the property, or "give plaintiffs an interest in the land under which they could deny the sale of the property to others." Further, "the lease provides that it 'if the Lessee fails to exercise his or her option within lease term, the Option to Purchase shall lapse.' Plaintiffs allegedly only attempted to exercise the option to purchase months after the property was sold to" Verstraete, and the right of first refusal "states that this right only exists 'during the extended (but not the original) term,' which at all times relevant was not yet in effect." By "specifying that the right does not arise during the original term of the lease, the contract clearly evidences an intent that no such right exists or should be implied." The court rejected plaintiffs' claim that "where the lease states, 'OWNER has option to market and sell at end of lease term,' it indicates that owners may not market or sell the property before the end of" the original lease term. "Again, there is no language prohibiting the owner from selling the property prior to this time." Affirmed. 

Basic responsibilities of an executor

Originally posted on 01/11/2017 The emotional toils of dealing with the death of a loved one can be considerably difficult. Nevertheless, perseverance is paramount; especially if you are appointed to be an executor to one’s...

What you need to compliment your will

Originally posted on 02/08/2017 Making end-of-life plans usually end with a will, but they shouldn't. Some believe that simply having a will is enough. However, this post will briefly explain how having other estate planning...

The benefits of home health care providers

Originally posted on 03/22/2017 As we get older or suffer an injury, we need a little extra help. Home health care providers or caregivers can provide the assistance needed to handle your or your loved one's health and safety...

What to know about bail conditions

Originally posted on 03/06/2017 If you have been arrested and are being held on the suspicion that you have committed a particular crime, chances are that the only thing you are thinking about is getting out of jail as soon as possible and...

College students and estate planning

Originally posted on 12/16/2016 With college semesters starting up in Michigan, it may not be so easy to get college students to think responsibly. This time can be especially tough with the need of moving back to school and getting...

Three reasons to put a power of attorney in place

Originally posted on 11/08/2016 While no one wants to think of the unfortunate possibility of being incapacitated or of a time when we can't handle our own affairs, this circumstance is a real possibility. If something happens and this...

How to approach parents about estate planning

Originally posted on 12/09/2016 Family forms a strong foundation for many people's first and most intimate community. It is important to strengthen these first relationships so even uncommon questions become natural. For those...

PROBATE 44: Petition for Mental Health Treatment

Michigan’s Mental Health Code governs the civil admission and discharge procedures for a person with a mental illness. Specifically, MCL 330.1434 sets forth the procedure and content requirements for a petition for mental health treatment.

Should you get your criminal record expunged?

Originally posted on 04/12/2017 If you have been convicted of a crime, have served your sentence, and have followed all court recommendations, you should be able to put your past behind you and move on with life. Moving forward is critical...

Choosing the right executor for an estate

Originally posted on 05/28/2017 When people are thinking about planning their estate, they often think about trying to minimize the estate tax, keeping their will updated, and keeping items out of probate court; however, there is another...

Understanding how the Miranda warning works

Originally posted on 11/25/2016 Michigan residents who have seen television police shows or movies involving law enforcement have no doubt watched many dramatic scenes with officers quoting something to the effect of, "You have the...

Don't let a bad decision, unfair contract, or a messy divorce get in the way of a promising future!
Contact the experienced team at Aldrich Legal Services today to schedule your free initial
and secure reliable and trustworthy representation today!
Get the Help You Need From a Team You Can Truly Count On: (734) 404-3000