Pasture Lease & Land Auction Advise

[Stocker Steve]

I have four years remaining on a written lease with a semi retired land owner. He had a major head injury this winter and is now in therapy. An aggressive relative is urging him to subdivide the ranch into four parts and then sell them all in a land auction. The pasture I have leased is about 50% of two of the pieces and a small portion of a third. Subdivided land goes pretty high here because it is usually purchased for a hobby farm or a hunting cabin.

Any suggestions on my options here?

 

[TNfamilyfarm]

I would make a point to talk with the owner, his wife, and or family and state your desires. "I would like the oppertunity to purchase X amt of land if you ever deside to sell it" or "would you consider holding onto X amt of land and letting me lease it"

 

[Jogeephus]

You are in a tight situation. What is financially best for the landowner is on the opposite end for you. I'd talk to him and tell him you would love to buy it but you couldn't compete with the auction block. Some folks are not driven by money and would rather take less for the land knowing it will stay together and not be busted up. But sometimes you don't have a choice. Good luck.

 

[dyates]

How was the contracted worded? If was written correctly, a percentage of past years improvements (fence work, lime, etc.)may be due to you in the event of a breeched contract. Certainly, if the next four years have been prepayed, that money would have to be returned to you.
It may also be possible to prove that you have made financial decisions based on the contract. If you lose money because the contract has been breeched, you should receive compensation. Talk to a lawyer. Depending on the landowner, you may have to file a lien against the farm that would be paid from sale of the farm.
Chances are, you won't get anything. As everyone else said, hopefully you find a peaceful solution with the landowner.

 

[Stocker Steve]

Initially this lease was a win for everyone. I have applied MIG, as well as making a number of other improvements, which the owner, the cattle and I have been pleased with.
The owner lives very simply so I think the issue now is keeping the land in agriculture vs. maximizing the inheritance of folks who have moved to the city. I will have to see if the owner is willing to talk through this.

 

[Jogeephus]

Steve, this may not apply but you might think about this. My neighbor quietly sold his land to the farmer who works the place. The deal was, my neighbor financed the sale and gets lifetime use of the house until he and his wife both die. This has worked out real well for him and his wife both. They still get to live there and get to do about whatever they want on the place plus they get some additional income to their social security.

 

[Texas PaPaw]

Steve

Get your lease filed in the deed records at the county clerk/recorders office. This should make any purchase of the property subject to your lease. If you have a valid lease, a sale of the property should not terminate your lease and the new owner will have to live with it. If it is filed with the county, the lease will be made known in the title search before the closing of the sale. It could also give you ammunition to negotiate a lease buyout payment to you in return for your relinquishing the lease prior to its expiration. I'm no attorney, but suggest you contact one in order to protect your interest.

Bottom line-you made a longterm deal that the owner must live with or make a buyout deal that you will agree with. Sounds like you hold all the cards in this deal and the owner (& relatives) need to be reminded of the terms of the lease.

 

[TexasBred]

If you have a good attorney friend ask him to look over the lease. Depending on how it's worded it may be totally worthless. Does it contain a legal description of the land in question? Does it bind his heirs and/or assigns ? Then again you may have something to stand on but I would want to know by exact position before I "alerted" any of his kids.