Severing wind Rights after contract is signed.

[Lone_Wolf]

I have a friend who is in the middle of purchasing some property. It's a family owned piece of property with 5 parties involved. Two parties own 25% and the other three parties split the remaining 50%. One of the parties who owns 25% is buying out the others in partnership with his son. The contract to purchase the property has been signed by all parties. Closing date is soon approaching. The four parties that are being bought out get news of a wind farm getting developed in the area, and all of sudden want to severe and retain 50% of the wind rights. They are already maintaining 75% of the mineral rights. Since the contract has already been signed, shouldn't this be a done deal? Seems like they're asking for a bit much.

[WBT]

I'd take the position it's too late if the contract has already been signed. There's no way I'd ever consider a purchasing a property that might have a wind farm placed on it.

[HUNTNETIME]

They should not be able to change ANYTHING regarding the sale now. Wind rights? Jesus Christ. What has this world come to?

[Lone_Wolf]

But what if they refuse to close? Everybody has to sign at closing, and I think that's the hangup right now.

[SmTx]

But what if they refuse to close?

sue em

[Lone_Wolf]

You wouldn’t think a matter between family would have to come to that point 🙁

[Stuck]

I would think they could back out of the contract and renegotiate. But price per acre would need to come down and I would want 50.1% of wind rights. Good luck collecting anything on you 49.9%.

[Stan R]

I would make them close and then charge them any legal fees involved.

[BTLowry]

I first read it as they had closed and thought they are just SOL

Then I reread that it was just under contract so probably they can cancel and renegotiate

But if I was concerned in the least I would consult a real estate attorney ASAP

[brokeno]

Sounds like a done deal to me.

[dfkoon]

Offer to renegotiate. Offer them 10% of what you did of the selling price for the wind rights.

[Huntingfool]

You can walk away from a real estate contract until everything has been satisfied - appraisal, survey, etc. If they are through the option period they cannot back out or change the contract legally.

If it were me I would be trotting down to a real estate attorneys office - is a realtor involved? If so they should be also giving advice

[Lone_Wolf]

No realtor, but the same attorney has done work for all parties involved. What’s the option period?

[Lone_Wolf]

Offer to renegotiate. Offer them 10% of what you did of the selling price for the wind rights.

This won’t happen

[Zjesse22]

It will get messy depending on which way they go I don’t think it will be good