Walters v. Sporer

In 1998, the Laus bought land from Walters, who financed the purchase. An attorney, chosen by Walters, drafted the documents. The deed of trust included a right of first refusal that ended once the financing was paid. At closing, the warranty deed stated: “No sale ... shall be consummated without giving at least 30 days written notice of the terms to Grantor. Grantor shall have the right to buy the lot on the same terms.” In 2007, the Laus finished paying on the note. Walters executed a deed of reconveyance. Around 2013, the Laus decided to sell the land with their trailer home and contacted a real estate agent, who told Walters about the listing. Walters did not mention his right of first refusal. The Laus entered a purchase agreement with Sporer. Neither that agreement nor the Laus’ affidavit regarding debts, liens, and adverse claims mentioned the right of first refusal. The Laus conveyed the property to the Sporers by warranty deed, which was recorded. Walters sued. The court granted the Laus and the Sporers summary judgment, holding that the deed, which was not signed by the Laus, did not satisfy the statute of frauds, Neb. Rev. Stat. 36-105. The Nebraska Supreme Court reversed, holding that a right of first refusal in a deed is an enforceable agreement under the statute of frauds upon the acceptance of the deed. View "Walters v. Sporer" on Justia Law