Replies to This Discussion

Permalink Reply by Nate on April 8, 2011 at 4:20pm

Anyone can make you an offer on a lease as long as they can fulfill their obligations in one way or another. What this clause does is gives whoever leases you,  CHK for example, another 3 years or however many years discussed in the "right ot renew" phase for free essentially. Because most people wouldn't want to lease you while this cloud is over your leases head because chk will just match whatever you are offered most likely. I personally think it's a bullshit clause used by shysters.  They just had this guy leased for 5 or 10 years and didn't do anything, now they want to have the first right to match anyone else that comes in and want's to do something. Use it or lose it buddy!!

Permalink Reply by Bill anders on April 14, 2011 at 2:40pm

that lease is a joke, CHK took em to the bank

 

Permalink Reply by Brian Hawk on November 5, 2011 at 11:07am

I have a lease with a Preferential Right to Renew clause also. Did you get a 3rd party offer? If so, did your lessee match? If you pursued this option, I'd be interested in your experience and any light you could shed on the process.

Permalink Reply by Lisa Johnston on November 6, 2011 at 1:17pm

Can you explain exactly how the preferential right to renew works for the property owner? We have one on our lease and I want to be sure I understand. Thanks!

Permalink Reply by Brian Hawk on November 7, 2011 at 8:24pm

It depends upon the wording of the clause in your lease. Anyone's response without knowledge of the specific wording in your lease would be worthless generalization and/or speculation (not unlike what was posted here previously).  Some allow the lessee to match any offer a property owner receives for a certain amount of time after the lease expires. Others allow the property owner to negotiate a new lease with a third party during the primary term of the lease and, if the lessee is not willing to match the offer the lease is terminated freeing the property owner to accept the better terms. The clause in my lease is a combination of these two.

Permalink Reply by Lisa Johnston on November 8, 2011 at 5:37am

Thanks Brian. My lease states "if anytime during the primary lease , lessor receives an acceptable offer from a third party to lease the leasehold, Lessor shall provide in writing the particulars of said offer to lessee. They shall have 30 days from receipt to match said offer as to all terms and conditions." Does this means I can legally seek other offers or am I reading it wrong?

Permalink Reply by Brian Hawk on November 8, 2011 at 9:18pm

That's my understanding but it might be wise to have a lawyer review your lease in its entirety to make sure. I'm not sure how willing a 3rd party might be to offer a lease knowing the lessee has the right to match. Two questions, did you post only a portion of the clause? Was this originally a lease with Anschutz now held by Chesapeake?

Permalink Reply by Lisa Johnston on November 9, 2011 at 11:01am

Brian, it is not the complete clause. It states in full the following: "If at any time during the primary term hereof, or within 1 year from expiration, cancellation or termination of this lease, Lessor receives an acceptable, bona fide third party offer to lease the leasehold, in whole or part, Lessor shall promptly provide the Lessee, in writing of all the verifiable particulars of such offer. Lessee shall have 30 days from the receipt thereof to advise Lessor in writing of irs agreement to match said 3rd part offer as to all terms and consideration; immediately thereafter, Lessor and Lessee shall take all cooperstive steps necessary to effectuate the consummation of said transaction and the survival of said transaction through statutorily mandated right of cancellation thereof. Any lease or option to lease the leasehold, in whole or part, granted by Lessor in contravention of the purpose of this paragraph shall be deemed null and void." This is the complete paragraph. It is indeed from Anschutz corporation. Let me know. I appreciate all your help in decifering.

Permalink Reply by Brian Hawk on November 9, 2011 at 11:37pm

I believe this clause allows you to accept an offer from another party. I also believe that you would have to provide to your current lessee a copy of the signed/notarized lease. But beware, this new offer/lease will be matched "in all terms and consideration" so make sure the new offer/lease contains any and all modifications you may have made to the original Anschutz lease. I would also recommend that you include in the new lease another "Preferential Right to Renew" clause. ;) Now the disclaimer: I'm not a lawyer so this is just my opinion. I am not providing any legal advice nor am I acting as an attorney for you or any user of this web site. Users of this web site should consult with their own lawyer for legal advice.

Permalink Reply by Lisa Johnston on November 10, 2011 at 4:17am

Will do Brian. Thanks so much.

Permalink Reply by Brian Hawk on November 10, 2011 at 6:43am

You're welcome and good luck. Check your "Friends" list. If you're willing, I'd like to be kept updated on your progress with respect to your pursuit of a fair market lease. I'll reciprocate of course.