Yes, you can sell your property even if it has an existing cell tower lease. However, there are several important considerations and potential implications to keep in mind when selling property with an active cell tower lease:
- Lease Agreement Transfer: The existing cell tower lease remains in effect even if the property changes ownership. This means that the new property owner will inherit the terms and obligations of the lease agreement. The cell tower company continues to operate the tower on the property, and they will continue to make lease payments to the new property owner.
- Lease Valuation: The presence of a cell tower lease can add value to the property, which may be factored into the property’s sale price. The lease income can be an attractive feature for potential buyers, especially if it provides a reliable source of income.
- Lease Assignment Approval: Some cell tower lease agreements include clauses that require the cell tower company’s approval for a change in property ownership. This approval process typically involves a review of the new property owner’s qualifications and financial stability. It’s essential to check the lease agreement for any such provisions.
- Negotiation Opportunity: The sale of a property with an existing cell tower lease can be an opportunity to negotiate lease terms with the cell tower company. The buyer may seek to amend the lease agreement, which could impact the property’s sale price and terms.
- Due Diligence: Both the seller and the buyer should conduct thorough due diligence to review the terms and conditions of the cell tower lease, including the lease rate, remaining lease term, and any additional obligations. Legal and financial experts can assist with this process.
- Tax Implications: The sale of a property with an active cell tower lease may have tax implications, including capital gains tax. Consult with a tax advisor to understand the tax implications specific to your situation.
- Lease Termination Rights: Some lease agreements include provisions that allow the cell tower company to terminate the lease with notice or under specific conditions. These termination rights can affect the property’s value and the buyer’s confidence in the lease income.
- Lease Renewal and Extension: The new property owner may have the opportunity to negotiate lease renewals or extensions with the cell tower company as the existing lease approaches its expiration date. This can provide additional income security.
When selling property with an existing cell tower lease, it’s crucial to work with experienced real estate professionals, legal advisors, and telecommunications experts who can help navigate the complexities of the transaction and ensure that both parties are aware of their rights and responsibilities under the lease agreement. Additionally, thorough due diligence and clear communication with potential buyers are essential to a successful sale.
