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Real Estate - Grantor reserves rights so long as...

Just want to run this by you all to glean some ideas to see jeffm02/14/19
So grantor is retaining ownership of the leased premises? Is jstalin02/14/19
Access easements are part of the leased premises already. S jeffm02/14/19
I don't know where you are, but you can't split a parcel int jstalin02/14/19
Thanks. Should be ok here. jeffm02/14/19
Can't help but picture "Professor Jeff" in the conference ro 2tierreality02/14/19
You can mirror the existing easement and then retain that as 2tierreality02/14/19
The tower is a golden goose. Am I missing something, but wh 2ski02/15/19
The reason is because that little piece of land is in the mi jeffm02/15/19
Way out of my comfort area, but would you want to include so jd4hire02/15/19
That is an interesting point. I don't know that such a circ jeffm02/15/19
You could consider going the other way with it. Deed off the jorgedeclaro02/15/19
That's what buyer proposes, but I don't like it. To me, own jeffm02/15/19
You’re not going to be able to keep the fee unless you sho jorgedeclaro02/17/19
What about a profit a prendre to avoid the illegal subdivion khlanyane02/23/19
jeffm (Feb 14, 2019 - 9:30 am)

Just want to run this by you all to glean some ideas to see if I want to tweak what I have in mind.

Grantor is selling 560 acres of land. On a small strip less than 1/4 acre, there is a cell phone tower. The cell phone carrier has a written lease with Grantor. The lease has a primary term of 5 years and may be renewed, at Tenant's/carrier's sole option, for numerous successive 5-year terms - totalling a possible 50 years.

Grantor is selling the 560 acres subject to the lease, with the intent that Grantor will retain all lease revenues.

The language I intend will look something like this: "Grantor reserves the leased premises, including all easements appurtenant thereto, to Grantor and Grantor's heirs, successors and assigns for so long as the lease and all renewals and extensions thereof, whether under the current lease or any amendment thereto, remains in effect. During such time, Grantor shall have all executory rights pertaining to the lease; however, such executory rights shall be limited to leasing the reserved property only for the placement and maintenance of data transmission and broadcasting equipment."

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jstalin (Feb 14, 2019 - 10:29 am)

So grantor is retaining ownership of the leased premises? Isn't that splitting the parcel?

It doen't sound like the buyer would be granting any sort of easement for the cell phone tower company to actually access the tower.

Why not just create an easement to be retained by the seller that includes lease and access rights?

I don't have any experience here, but I feel like your language isn't covering all the bases.

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jeffm (Feb 14, 2019 - 10:55 am)

Access easements are part of the leased premises already. Seller is landlord. Seller is retaining the leased premises.

Yes, it splits the parcel "so long as..." This language is designed to merge ownership into the Buyer once the property is no longer used for the cell phone tower.

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jstalin (Feb 14, 2019 - 1:43 pm)

I don't know where you are, but you can't split a parcel into less than 40 acres in Michigan without local government approval.

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jeffm (Feb 14, 2019 - 3:43 pm)

Thanks. Should be ok here.

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2tierreality (Feb 14, 2019 - 7:15 pm)

Can't help but picture "Professor Jeff" in the conference room explaining this to the Buyer's counsel, whilst holding the proverbial bundle of sticks.

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2tierreality (Feb 14, 2019 - 7:11 pm)

You can mirror the existing easement and then retain that as part of the sale. In theory this could even be sold to a third party by your client, should he choose to do so later on.

Apparently some people do this and then do a 1031 exchange, treating it as a real estate interest.

https://www.landmarkdividend.com/cell-lease-overview/cell-lease-1031-exchange/

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2ski (Feb 15, 2019 - 2:43 pm)

The tower is a golden goose. Am I missing something, but why could you not sell 559 3/4 acres? Negotiate a permanent access easement and boom, done.

Seems complicated selling with attached lease. What happens if lease gets bought by new carrier? Old lease stops, then land owner pounces and claims lease terminated, now it becomes adverse possession situation. yes?, very sticky.

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jeffm (Feb 15, 2019 - 5:58 pm)

The reason is because that little piece of land is in the middle of much larger, rectangular tracts being purchased. The buyer wants the little piece to merge whenever its tower days are over. Seller is perfectly fine with that.

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jd4hire (Feb 15, 2019 - 3:57 pm)

Way out of my comfort area, but would you want to include some protection (beyond right to recourse under tortious interference of contractual relations) to ensure that carrier doesn't renew, land merges and buyer than leases tower to carrier for less money?

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jeffm (Feb 15, 2019 - 5:59 pm)

That is an interesting point. I don't know that such a circumventing deal could amount to tortious interference in the first place, meaning nothing would prevent buyer from making such an effort if he's inclined.

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jorgedeclaro (Feb 15, 2019 - 4:50 pm)

You could consider going the other way with it. Deed off the property in its entirety but have the buyer grant back a non-revocable license for entry and maintenance as well as an assignment of rents for revenues and leases for the Tower.

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jeffm (Feb 15, 2019 - 6:00 pm)

That's what buyer proposes, but I don't like it. To me, owning the fee is more logically consistent with being a landlord. I feel more safe with the fee.

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jorgedeclaro (Feb 17, 2019 - 1:37 pm)

You’re not going to be able to keep the fee unless you short plat it or create an illegal subdivision. Do you have a legal description for the part of the property with the tower?

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khlanyane (Feb 23, 2019 - 11:05 am)

What about a profit a prendre to avoid the illegal subdivion issue and to provide stronger rights than a license?

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