Poundkey
Recycles dryer sheets
Need some legal advice please
In 1992 my sister and I each inherited half of a small family farm in Iowa. We have a tenant farmer that lives on the place and have a signed legal farming agreement between the three of us which includes (the way I read it) a first right of refusal clause.
Just recently my sister has decided to convert her acres into Vodka and I just received a certified letter reading:
"In pursuant of adhering to the guidelines of a farm operating agreement entered into the year 1992, I hereby give official notice of my intention to sell my portion of the farm located in Harrison county Iowa. This person (my name) and this person (tenant farmers name) have first option to purchase. I request a response by certified mail within 30 days of this notice."
My question is.....doesn't first right of refusal mean that she has to have an offer to buy and then the tenant farmer and I each have the option to buy at the offered price?
Here is the exact wording on the agreement:
No Farm Owner or the Tenant shall dispose of or encumber any part of the Farm Land subject to this Agreement, except under the following conditions:
In 1992 my sister and I each inherited half of a small family farm in Iowa. We have a tenant farmer that lives on the place and have a signed legal farming agreement between the three of us which includes (the way I read it) a first right of refusal clause.
Just recently my sister has decided to convert her acres into Vodka and I just received a certified letter reading:
"In pursuant of adhering to the guidelines of a farm operating agreement entered into the year 1992, I hereby give official notice of my intention to sell my portion of the farm located in Harrison county Iowa. This person (my name) and this person (tenant farmers name) have first option to purchase. I request a response by certified mail within 30 days of this notice."
My question is.....doesn't first right of refusal mean that she has to have an offer to buy and then the tenant farmer and I each have the option to buy at the offered price?
Here is the exact wording on the agreement:
No Farm Owner or the Tenant shall dispose of or encumber any part of the Farm Land subject to this Agreement, except under the following conditions:
- The party desiring to dispose of or encumber his or her interest in the Farm Land must obtain the written consent of all the other Farm Owners and the Tenant.
- In the absence of such written consent, no Farm Owner or the Tenant shall encumber or dispose of any part of his or her interest in the Farm Land subject to this Agreement, now owned or hereafter acquired by them without first giving written notice to the remaining Farmer Owners and the Tenant of their intention to sell an interest in said Farm Land. The remaining Farm Owners have the first right of refusal to buy said Farm Land within thirty (30) days of the mailing of the Notice at a purchase price no higher than the fair market value of the land. If the remaining Farm Owners and/or the Tenant do not indicate in writing that they intend to exercise the option to purchase within the time described in the previous sentence, the Farm Owner may sell his/her interest on the open market. If sold on the open market the Buyer shall not be bound by this Farm Operating Agreement unless the Buyer elects to be bound by the terms of this agreement.
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