• A Right of First Refusal Clause

    Insider recommends a right of first refusal clause in your leases to prevent Landmark Infrastructure or a competitor from suddenly becoming your landlord.  Here’s a pretty thorough right of first refusal clause which Insider inherited in a billboard lease assigned to his company.

    Right of First Refusal:  If, during the term of the Lease Agreement (including any extensions or renewals thereof), or within 90 days after termination of this Lease agreement, Lessor shall make or receive an offer to lease, license, convey, grant an easement, sell, or otherwise alienate all or any portion of the Property (an “Offer”), Lessor grants Lessee a right of first refusal (“ROFR”) to enter into a new relationship with Lessor at the same price and on the same terms as contained in the Offer.  Lessor shall deliver to lessee (in the manner set forth in paragraph 11 of the Lease Agreement) a copy of the Offer within five (5 ) days of Lessor’s receipt of the same.  Lessee shall have thirty (30) days to exercise its ROFR by providing notice to Lessor within the ROFR period.  In the event Lessee does not timely exercise it ROFR, the ROFR shall be deemed not exercised; provided, however, if Lessor does not lease, license, convey, grant an easement, sell or otherwise alienate the Property to the purchaser identified in the Offer, or if the terms of the Offer should change prior to closing, the ROFR period shall automatically renew and Lessor shall deliver a copy of the Offer as amended or any new Offer to Lessee to begin the new ROFR period.

    What do you think of right of first refusal clauses in leases?  Let Insider know using the form below.

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