Posted by John Merchant on December 12, 2006 at 14:13:12:
If you’re selling a ROFR, then of course you’d expect to honor if it claim is made on it within the stated time frame and as per its terms.
To make sure a doc is NOT recorded, the signer simply makes sure it’s not notarized, as then, no county recorder anywhere will record it.
For sure, a recorded ROFR, just as any other recorded claim on a property ought to be real imopediment to clear title and title co. would most likely demand full release at time of any conveyance by its giver.
I am currently selling a home (“Home”) and also own an adjacent parcel (“Land”) that the Buyer would like Right of First Refusal because he can not afford to buy both properties at this time. After the sale of the Home I will own the Land free and clear and would like to hold on to it for long-term investment.
I would like to offer this Land for collateral on future deals or even obtain an LOC now using the Land as collateral. Will the ROFR be an issue to lenders for current or future collateralization of this Land? I have read that a ROFR is merely a personal agreement and not a covenant or incumberance on the land but I wanted other opinions.