Because of the unique nature of Cell Tower Leases and their connection to real estate, their existence on a parcel of land can modify the rules that run the buying and selling of property. Whether you have a building with a cell tower on the property, you may need to consider certain provisions when it comes time to sell the property.
Below are some situations you may find yourself in if you are selling a home with a cell tower, in addition to the likely options you will have in each situation.
First, when you sell land or a building, why would you want to keep the lease?
If you ask the question – when I invest the money you offer me for my Cell Tower Lease, can I get a similar income stream that I have now? And the answer is No, you better keep the lease. That is just because done properly, keeping the lease should have no real effect on the sale price of the building.
It is typical to distinguish a cell’s lease and future leasehold rights from the rest of the property.
In any case, this is what cell phone companies do on a daily basis when they lease property for a cell tower, in addition to what lease buyout companies do when buying cell leases and future lease rights. This is almost always done through a lease or easement so as not to break local laws that prevent parcels of land from being divided by deed. Check here!
You can maintain a cell tower lease for not only cell leases on buildings but also cell towers on open land.
Most significantly, the property owner makes sure they retain all the rights they require to: 1. remain the owner or landlord under the lease, and 2. ensure that they have the lease rights to the future communications facility for the parcel in question. Whether you’re not in the business of handling these kinds of transactions, it is simple to miss something.
An override usually arises when there is a request to extend or modify the lease and you discover that you do not have all the rights that the cell tower company desires. Otherwise, if at some point in the future you decide to sell the lease and the rights of the future lease, in addition to it turns out you don’t have all the rights the buyer wants.
You are in trouble in either case. You need to go back to the person you sold the balance of the property to get the necessary variations. They will usually want money in response, either part of the sales price or part of the rent. In addition to this can be a huge sum, as long as leases usually sell for 15-20 times annual rents.
To maintain a Cell Tower Lease, you must retain a package of rights similar to those a lease buyout company would obtain if it bought a cell tower lease as well as future lease rights.
This provides you great assurance that you have the rights you require as a landlord under the present lease or any amendments, and if you choose to sell the lease in the future.
The terms and conditions cannot be so one-sided in your favor that they affect the sale or sale price of the property. Standard documents from companies that purchase cell leases often have this defect. However, there is a happy medium where legitimate requirements on both sides of the equation can be met.
So to reply to the questions – if you have a cell tower on open land, or Cell Tower Leases on your building, you can sell the land or building as well as keep the lease. However, you have to do it very carefully. Click here for more information: https://towerleases.com/tips-for-hiring-consultants-to-get-you-the-best-cell-tower-lease-rates/