What is a Cell Tower Right of First Refusal?
Many cell carriers and tower companies are including a Cell Tower Right of First Refusal in their standard lease agreements. Generally, a Cell Tower Right of First Refusal provision states that in the event the landowner receives an offer to purchase his or her property, the cell carrier or tower company has the right of first refusal to purchase the property on the same terms and conditions as the offer. To evaluate the impact of such language, a landowner needs to take many factors into consideration:
- Why is a Cell Tower Right of First Refusal clause in the Lease and what are the concerns of the cell carrier and tower company?
- What are my long-term and short-term goals for the property?
- Does the Cell Tower Right of First Refusal restrict my ability to sell my property or diminish value of my property?
- Is it reasonable for a cell carrier or tower company to have a Cell Tower Right of First Refusal on my property in the first place?
- How much time, if any, should the carrier or tower company have to match the offer to purchase the property?
- Are there specific circumstances in which the Cell Tower Right of First Refusal should or should not apply?
- If a Cell Tower Right of First Refusal is exercised, how quickly should the cell carrier or tower company close on the purchase?
At Cell Tower Attorney, we can help you evaluate each of these factors as well as answer other questions you may have about any other provisions of a cell tower lease. As we have negotiated hundreds of cell tower leases, we have seen many variations of the Cell Tower Right of First Refusal provision and understand how to negotiate lease language that addresses the carrier and tower company's concerns as well as protect the marketability and value of the landowner's property.
If you have been approached by a cell carrier or tower company to lease your property or have specific questions about your lease, please feel free to contact us.