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    Property Law Legal Research Blog

    Alistair D. Edwards

    Recent Posts

    PROPERTY: Stranger-to-the-Deed Rule Did Not Invalidate Right of First Refusal

    Posted by Alistair D. Edwards on Wed, Sep 9, 2015 @ 10:09 AM

    The Lawletter Vol 40 No 7

    Alistair Edwards, Senior Attorney, National Legal Research Group

         Under the stranger-to-the-deed rule, a deed with a reservation or exception by the grantor in favor of a third party, a so-called stranger to the deed, does not create a valid interest in favor of that third party. For example, a reservation in a deed purporting to create a life estate in a third party (a stranger) may very well be ineffective. Many jurisdictions still adhere to some form of the stranger-to-the-deed rule.

         What happens, though, when a grantor gives a deed containing a right of first refusal in favor of a third party or parties? In other words, the grantor did not create a right of first refusal in himself but in favor of a stranger to the transaction. The effect of a right of first refusal, also called a preemptive right, is to bind the selling party to not sell without first giving the person holding the right the opportunity to purchase the real property at the price specified. But does the stranger-to-the-deed rule invalidate a right of first refusal given to the third party/stranger?

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    Topics: Alistair Edwards, property, right of first refusal, reservation, The Lawletter Vol 40 No 7, stranger-to-the-deed rule

    LANDLORD-TENANT: Apartment Tenant May Have Claim for Breach of Implied Warranty of Habitability Based on Another Tenant's Harassing Behavior

    Posted by Alistair D. Edwards on Mon, Jul 6, 2015 @ 15:07 PM

    The Lawletter Vol 40 No 5

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    Topics: property, Alistair D. Edwards, habitability, breach of implied warranty, landlord-tenant, The Lawletter Vol 40 No 5

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