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  1. #1
    Join Date
    Jun 2012
    Posts
    1

    Default Cannot Close Due to Unresolved Right of First Refusal

    My question involves real estate located in the State of: AL

    In 2002 my elderly father sold a house to a lady I'll call 'Jane Doe'. The house sits on a 1/2 acre lot (lot #40). Dad also owns the adjoining 1/2 acre lot #41 which is just bare land (no house). At the closing, Jane Doe's attorney had my father agree to a right of first refusal on the adjoining lot #41.

    In 2007 Jane Doe was foreclosed on, and has absolutely disappeared. In 2010 my father passed away, I'm the sole beneficiary of his estate. I recently found a buyer for the lot #41 property. The deal was halted though, because the prospective buyer's attorney informed him (the buyer of lot #41) that while doing a title search, he discovered that there is a poorly written right of first refusal "without a time limit" attached to the deed on lot #41 and he has been refused title insurance.

    I had (wrongly) assumed the fact that Jane Doe had been foreclosed on, and it had been 10 years since the right of first refusal was agreed to, that the right of first refusal was null and void. The prospective buyer's attorney told me that if I'm unable to locate Jane Doe that I will need to hire an attorney and file suit ( I can't remember the name of the suit) and that a notice will be placed in the local newspaper for a period of 4 weeks. Then I'd have to go to court and ask the judge to remove the right of first refusal.

    Input anyone?

    What is this type of suit called, it's name?

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,671

    Default Re: Cannot Close Due to Unresolved Right of First Refusal

    You can either find Jane Doe (or her heirs) to get her to decline the purchase, or you can file a "quiet title" action to resolve the issue.

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