I'll throw in a little backstory.
Year 2007
Farmer owns 5 parcels of land. On one parcel of land he has a few barns and a 2 bedroom house. He leases this out to his sister who only uses the house. Under the lease agreement, upon death of the owner the sister has an option to buy the land and all buildings for $1. (There is no time frame in which she can exercise the option listed on the lease agreement)
Year 2018
Farmer wants a new barn. He gets a loan out against two parcels of land he owns, one being the one his sister currently resides on, the other in which him and his wife live on.
Year 2019
Farmer unexpectedly passes. Farmers wife now inherits the 5 parcels of land and remaining properties. She now owes the bank the remaining loan for barn he built in 2018. Again, the lien is against the land in which she lives on, and the land her sister-in-law lives on.
Questions:
Is the sister still able to buy the property for $1 if there is a lien against it? If so, does she also take on the debt of the lien? And this question might vary from state to state (PA), how long is she able to exercise her option to buy-in?
Also the sister's lease of the property has to have an end date. It could be something like 99 year or n years renewable at initial terms, but there has to be an end date to that lease.
both of those things could have an impact.
Only thing written in the lease is that upon his death the Lessee has the option to buy the land for $1. No one can act on his behalf.
Also the sister's lease of the property has to have an end date. It could be something like 99 year or n years renewable at initial terms, but there has to be an end date to that lease.
The way the lease goes it says in the contract.. " lease commences on this date, June 5th, 2007, and continuing as long as Lessee wants to lease the Premises according to the terms of this agreement."
Nothing is mentioned about an liens against the property. At the time of the of the lease everything was free and clear. He only took out a loan against it 2 years ago.