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Case Notes
Under Decades-Old Lease Terms, Postal Service Gets Property at Bargain Basement Price
A landowner who has become dissatisfied with the terms of a lease-with-option-to-buy contract is bound to carry through with the sale because the contract is not unconscionable, says the U.S. District Court for the Northern District of Ohio in U.S. Postal Service v. Americo Fisco Revocable Trust, 2016 U.S. Dist. LEXIS 117478 (N.D. Ohio, 8/31/16).
In 1965, the United States leased a property in Willoughby, OH, for an initial term of 20 years, with the option to renew for six five-year periods thereafter. The initial lease also contained a clause authorizing the United States to purchase the fee-simple title to the leased property at the end of the first lease term or at the end of any of the six five-year extension periods. The negotiated price of such purchase was set in the original lease at $300,000, and the United States could exercise the purchase option by giving the lessor at least one year's written notice that it intended to purchase the property.
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