Legal Question in Real Estate Law in Iowa

Here is my situation. My husband and I signed a lease/rental agreement with our landlord that stated in the contract (word for word from our lease): "Tenant is being given first right of refusal in regards to any and all real estate offers that the landlord receives on this property. If the tenant so chooses to excercise this right, they will be given 10 days from the date of the other offer to present their own offer." We received noticed that the landlord received an offer on the property and she accepted that offer, however, she was giving us 10 days to put in our offer. Which we did on day 5 of our 10 days and she accepted our offer pending financing (which our offer letter reflects). We then went forward with our loan officer to abtain financing.

After 10 days was up for us to put in our offer (which we had already put our offer in). We receive a letter stating that our 10 days was up to abtain financing. However, that is not what lease agreement states. So, I explained that to the landlord, she acknowledged the error and we went forward with financing and received approval. I called to let her know and she then informs me that she is obligated to take the other offer because our 10 days was up, and when she accepted the other offer she wrote in the contract (to the other offer) that we had 10 days to receive financing NOT 10 days to make an offer (which is what our lease says).

She said that when she wrote the lease agreement up with us she meant for it to say that we had 10 days to abtain financing, but its not what she wrote. So, my question is..Do we have any legal rights in this situation? We do have first right of refusal and were not able to excercise that right, because she received and accepted a offer before giving us the chance to make an offer or to abtain financing.


Asked on 8/03/12, 7:41 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Based on the limited information you have provided, I would say your landlord is incorrect. The language you quoted would obligate you to make an offer within ten days, not purchase within ten days. The fact that the landlord "meant" something different that was contained in the agreement is probably not controlling, especially considering she wrote the document, or had someone write if for her. Contact a real estate attorney in your area to assist you.

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Answered on 8/07/12, 6:50 am


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