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Right of first refual

My father in law recently expressed interest in selling us his home, if we would rent it back to him. This would let him get his equity out of the property to retire on, and we would get a decent price on real estate to use as a rental property in the future. We are buying and holding rental property already for retirement, and plan to add doors as we can.

My father in law rented his home for 15 years, and then purchased it from the previous owner with owner financing and a right of first refusal for that previous owner and their heirs. He has called the previous owner to ask if they'd be interested, and they asked to see the contract.

We've not written any contract, we've only briefly discussed a potential price and that he would want to continue to live in the home, etc.

If we wrote him an offer and included a right of first refusal for him to purchase it back if it was sold, potentially for the original sale price plus closing costs, and included a clause that he could continue to rent indefinitely as long as he was not behind on payments/destroying property... would that be acceptable considering the current right of first refusal he has with the previous owner?

Obviously these are unfavorable terms for that previous owner, but they really are the terms under which he is willing to sell, and they would be terms we'd fully expect to abide by.

The other side of this is if it will affect financing in anyway, us having these terms in place, I understand the previous owner would need to revoke their right of first refusal if they chose to before financing can happen.

I also assume that if we write that contract, and they review it and accept, he is compelled legally to move forward with the sale?

We're obviously reaching for a way to make this work, and I understand you should not try and discourage the ROFR holder, but again, these are the terms the seller wants and ones we would accept.

He just wants his equity out so he can retire and to stay in his home.

Thanks for any advice!

submitted by /u/Few-Mathematician741
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source https://www.reddit.com/r/RealEstate/comments/1ayog8q/right_of_first_refual/
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