Legal Question in Real Estate Law in Texas

Who's right of first refusal is superior

I was one of three sibling beneficiaries of a trust created in 1995. My sibling was the trustee. A lease was signed by a business to rent a building belonging to the trust in 1996. In 1998 their was an amendment to the lease

extending the lease and the business was given a right of first refusal (ROFR) to purchase the property. This ROFR was not filed with the county clerk. The trust was terminated in 2001 and the trust assets were distributed to the 3 siblings. The trustee sibling ended up with the building and the lease. I got another building. As part of the settlement papers both myself and my sibling were given ROFR on the other ones building. These ROFR were filed with the county clerk. My sibling decided to sell their building. My sibling's attorney sent me a copy of the contract and notified me of my ROFR. I gave notice in a timely maner and exercised my ROFR. When I went to the title co. to replace the ernest money, the closer told me she could take my ernest money, but would just have to give it back because when I sign the new contract that will give the business the right to execute their ROFR. Whose ROFR is superior. I feel like my ROFR flows from the trust into the settlement papers ROFR.


Asked on 11/03/06, 7:55 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Who's right of first refusal is superior

If what you say is true, it is possible that your ROFR is superior. Have the escrow officer run the sequence of events through their legal department. If they come to the same conclusion, it may be necessary to "quiet title" to the property to eliminate the cloud on title that the 1st ROFR poses. Be sure you contact a real estate attorney if you need help since this is a very specialized problem.

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Answered on 11/04/06, 9:23 am


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