First time post, been lurking around for a while. REALLY need some help with this one. :banghead
I have a deal in place to purchase a manufacturing company with a ten year opiton (term of the lease) on the RE. We have been negotiating and working on this deal for six months. Finally getting contracts wrapped up and now the Seller, after never mentioning it, insists on a minimum on the RE option. We had only discussed the term of the option and that we had ninety days to exercise it after providing written notification. We had not yet finalized if one or three appraisals would be used, but point is, minimum price was never discussed.
Seller is basically looking for an insurance policy in case the value of the property plummets and I go to exercise as is my right. As far as my group is concerned, he has basically taken the free and clear option we negotiated way back when and tied our hands. It is no longer an option in the spirit it was originally intended. Plus, setting a minimum now simply cannot factor in future economic and political issues - exactly what he is trying to avoid.
Does anyone of you RE Mavens have an idea or suggestion on how to approach this issue? Do you know of any way to satisfy seller’s concern without a straight minimum but somehow make it palatable to both parties? I need to figure out a way to get the Seller to make the first move and at least back to the table.
Neither party is talking now and for all intent, the deal is dead. We are talking about six months and thousands in legal fees; seems like a terrible waste to me. :flush
Your input and time is appreciated. Thank you.