Good evening, first off it's been awhile since I've been on here, with that being said I've got a question concerning a potential farmland purchase. I've come across a piece of property that is 175 acres with roughly 60 acres in pasture, the remaining land is a mixture of hardwood timber and 9 yr old planted pines. It does have a 1.5 acre pond and two creeks that run through the property. The property has a cell tower on it that the owners have sold the rights to the tower to a 3rd party company, this is where things get interesting. In the contract with the company that has the rights to the tower it states that they have the right to move there easement at any time and anywhere they chose on the property. After learning this I'm being informed that it isn't likely this land wouldn't be able to be built on. They owners have tried to resolve this issue but haven't had luck. At this point it looks like they are considering selling it at a reduced rate since it is only farmland. I have a interest in it because of the price point and I need more land for pasture. My question is would it be a drawback to buy it knowing it's only farmland from an investment standpoint? Have any of y'all ever ran into this before? It's looks like it's possible to get it for around 1500/acre. Thoughts and input would be much appreciated.
Purchasing farmland
- Thread starter Sd1030
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If the tower company chose a site for a tower, then built a tower and hung a bunch of stuff on it, doesn't seem likely that they would decide to move the tower later on. The wording "the right to move there easement at any time and anywhere they chose on the property" seems odd to me. Have you read the actual contract?
Yes I've read it and just to be clear it doesn't say that exactly but it does indicate that they have that right. The title search company that they lawyers office representing the sellers uses brought this to light. Also this cell company didn't built this tower they are a third party company that bought out the rights the land owners had.
bird dog
Well-known member
So if they moved the easement, would the easement acreage stay the same? They can't just add more acreage to the easement if they want to can they?
If you want it for just grazing and timber rights, well it is what it is. Its similar to property that has no access to water or electricity.
If you want it for just grazing and timber rights, well it is what it is. Its similar to property that has no access to water or electricity.
Guess you got a good point on the whole increasing the acreage. It's not clear but it does indicate that it can be moved. I'm in the process of trying to get another lawyer to review the contract. At this point I just want it for farming but I just wanna make sure I've covered all my bases.
blacksnake
Well-known member
I think if a new cell tower was to be built in the future it would be built on land with a high elevation.
So if someone was to build a house just don't do it on the highest points.
So if someone was to build a house just don't do it on the highest points.
I have a communication tower on a farm I own. It was there when I purchased it. The original company went bankrupt. Nobody came and claimed the tower as an asset, so I started leasing it. It's my understanding that companies in both cell towers and radio towers fold all the time. You might end up the owner of a tower. Blessing and a curse.
Bigfoot said:
We get $4,800 a year from a billboard company that leases a spot on our farm. I'd like a cell tower company to show an interest.
TennesseeTuxedo said:
We have cell towers on adjacent farms at two different locations. We just lucked out I guess. The one farm gets $18K/year, not sure about the other. On the flip side, if company goes bankrupt,or somehow you end up with ownership of tower, it is my understanding that you are responsible for maintenance of tower. (i.e. those blinking lights burn out from time to time) Plus, one must consider the cost of DEconstruction of such facilities if it is not in original contract that someone else has to do that. Could quickly get into the wallet to bring one of those cell towers down.
VaCowman said:
You are correct here, and the guy that climbs mine is 79 years old..........So i need to be looking for somebody.
There are companies that will buy your lease to. Say like your at 5K a year, they will give you 75K for all future payments. Not a good deal in my opinion, but you get a some of money, that you can do something with, instead a little all along.
$1500 per acre in today's market is worth some risk. For what it's worth, a Texas Power provider went around leasing up the mineral rights to a lot of property back in the 1960's for sub-soiling, open mining Lignite Coal. They are very big and still provide a lot of power to their service areas. Had a couple of caveats in the contract including having to stay a certain distance (300 yards) from a dwelling, and having to be on and off a location in a fixed amount of time, like if they were digging adjacent to your house and the noise and dust would really be a problem, you wouldn't have to put up with it forever.
It deterred me from making a purchase I really wanted. Most all of that land where I was looking, is untouched and this is 2020.
Your first question might be, why would they move an existing tower. Also, if they did, why would they set it on top of someone's home when they could set it 100 yards from the dwelling? People aren't animals!.....usually.
It deterred me from making a purchase I really wanted. Most all of that land where I was looking, is untouched and this is 2020.
Your first question might be, why would they move an existing tower. Also, if they did, why would they set it on top of someone's home when they could set it 100 yards from the dwelling? People aren't animals!.....usually.
