Re: Right of first refusal and waiting lists
From: Joani Blank (joaniswansway.com)
Date: Thu, 23 Sep 2004 23:37:41 -0700 (PDT)
I know of only one community where everyone has agreed that if they are selling their unit, it will go to to the first person on the community's waiting list waiting for that size unit, all of whom have completed an orientation and have been prequalified for a mortgage. However most communities simply keep a list of people who have requested to be notified in the event of a resale, and when notified, they can simply get into the running to buy the unit. A seller has the right to sell to the highest bidder (or the lowest if he or she is a friend or relative) , or to the household they think would fit into the community best. Or not, if there are other considerations.

I believe that even if the community has a right of first refusal, the unit can be sold to someone else IF the community cannot meet the price offered by the other party, though I assume in many cases, the seller would choose to sell to the community at a somewhat lower price if the other offer came from someone who the seller thought would not be a good community member.

Not all cohousing communities have the right of first refusal to buy a unit in the community when it comes up for sale. Neither of the two I've lived in, for instance, have such a right.

Though where I've lived we've all been involved in introducing prospective to the whole community, sometimes even with showing a unit for sale if the owner is not available. Most of us have signed a voluntary participation agreement that states that we will not sell (or rent) our units to anyone who doesn't want to/intend to "participate," and most owners wouldn't want to sell to anyone like that anyway, but yes, legally and technically an owner of a private home can see to anyone he or she wants to though in most states one cannot legally discriminate against people of a particular "class" such as people with or without kids, or people of color, or people under or over a certain age....

If I've misled anyone here, someone please correct my errors.....


Hello,

        In putting together our condo docs, we like many other communities
will have a right of first refusal, whereby the homeowners' association
can match an offer on a unit a member household is selling.  The question
has come up, however, with how to square that with the idea of having a
waiting list, which we have now during the development phase and probably
will have after move-in as well.  One reason to maintain a waiting list is
to have potential buyers who have gone through our "clearness" process and
have self-selected as interested and willing to become cohousers in our
community.

        The question -- Suppose a household wants to sell their unit.  The
household that's #1 on the waiting list offers $300,000 for it, the
household #2 on the list offers $310,000, and an external buyer offers
$325,000.  Assuming you have a right of first refusal and a waiting list,
who gets the right to buy the unit and for how much?  Assume the seller
had put the unit on the market for $330,000 but is willing to negotiate on
the price.

        Thank you very much.  I'm looking forward to seeing some of you on
the Massachusetts Cohousing Tour on October 2!

Regards,
David Heimann
JP Cohousing


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Joani Blank
510-834-7399
Cell: 510-387-1315
joani [at] swansway.com
www.joaniblank.com

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