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Loren
Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 34047
Experience:  30 years of real estate practice experience.
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When selling commercial property to a renter of said

Customer Question

When selling commercial property to a renter of said property is there any way that say the renter is approached by a potential buyer of the property (thinking that the renter is the owner) and wants to purchase the property at X amount of dollars. Then the renter offers to purchase the property at a much lower price from landlord and then turns around and resales the property at a much higher price, can the original owner put a time stipulation that property cannot be sold within a certain timeline without sharing any profit margin with original owner?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Loren replied 1 year ago.

Good morning. I am Loren, a licensed attorney, and I look forward to assisting you.

Expert:  Loren replied 1 year ago.

Yes, it is possible to provide for the buyer to be required to share the profit with the seller if the property is resold within a certain period of time.

Expert:  Loren replied 1 year ago.

I have included a similar provision in certain transactions. It is not common, but it is, otherwise, completely enforceable.

Expert:  Loren replied 1 year ago.

You may need to include the provision as a deed restriction to prevent the doctrine of merger from causing problems, but it is a viable term of the sale.

Expert:  Loren replied 1 year ago.

Did you have further questions? Have I answered your question?

Expert:  Loren replied 1 year ago.

If you have no further questions please remember to rate my service so that I am credited by JA for answering your question and also so that I may close the question. Thanks.