|Re: marketing question / right of first refusal||<– Date –> <– Thread –>|
|From: Dave and Diane (daveanddeeverizon.net)|
|Date: Fri, 20 Jul 2007 04:56:38 -0700 (PDT)|
Hi Raines, and fellow coho-ers,Raines, in answering a question from Leah Schindler you wrote the following:
On 19 Jul 2007 06:41:40 -0700, Raines Cohen wrote:
* The seller has incentive to market widely and get the best offer, and won't have to deal with the integration of the buyer with the community. The community has incentive to hide prospective units for sale and NOT communicate to the people who have reached out to the community (i.e. waiting/interest lists) and who can be the best prospects / most into community. While the long term results are not a given (many people simply buying a condo have turned into greatcommunity participants), the mismatch seems at odds with best practices.
How do you see it that the community has an incentive to hide prospective
units for sales and not communicate to the people who have visited thecommunity? At JP cohousing we have Right of First Refusal but we definitely see it in our interests to keep in touch with the people who have inquired about us and we are in the process of setting up the waiting list process. We are hoping to have quite a number of people on the waiting list eventually so that when a unit comes up for sale we can readily find a buyer who can
match seller's asking price. My own experience with doing the traditional "real estate process" forcohousing is that it doesn't work in terms of getting a sale "in the moment."
See our ROFR test from the Master Deed below: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -16. Right of First Refusal. Except for the first conveyance of any Unit by the Declarant, the Association shall have a right of first refusal with respect to the transfer of any Unit, which shall be exercisable as a means of insuring owner-occupancy of a Unit and to insure the continuance of the mission of the Condominium set forth herein and in the Declaration, but only upon the terms and conditions set forth herein. Moreover, such right shall not be exercised so as to restrict alienation, conveyance, sale, leasing, purchase, ownership or occupancy of units because of race, creed, color, national origin, sex, age or sexual orientation. A transfer by will or intestate succession shall not be covered by this Section, nor shall a transfer by a Unit Owner to a spouse, domestic partner, parent, child, grandchild, sibling, first cousin, niece, nephew, aunt, or uncle, provided that said persons have completed the Jamaica Plain Cohousing Clearness Process.
Whenever a Unit Owner shall desire to sell, dispose of or otherwise convey a Unit, the Unit Owner shall provide written notice to the Managing Board of the Association containing the exact terms and conditions which the Unit Owner has received from another purchaser, and/or is willing to accept. The Association shall thereafter have thirty (30) days to exercise the option or notify the Unit Owner of its intention to waive the right of first refusal. Such Unit Owner shall be prohibited from transferring the Unit unless and until the thirty (30) day period has elapsed without exercise of this option by the Association as set forth below.
If, after the Association has waived its right of first refusal, the proposed transfer does not occur for any reason and the Unit Owner shall desire to sell the Unit at a lower price or on more favorable terms, the Unit Owner shall notify the Board as set forth above; in which case the Association shall have five (5) business days to exercise its right of first refusal and notify the Unit Owner of its decision (unless the original 30 day period above ends later, in which case the original deadline apples). This paragraph's shortened notice provisions shall only apply within six (6) months of the original notice of intent to sell.
If the Unit Owner has not identified the prospective buyer in the initial notification to the Association (i.e., has provided the Association with a price they are willing to accept), or the prospective buyer has changed since the original notification, the Unit Owner must identify the prospective buyer prior to the sale or transfer of the Unit. If the Association at that time has waived or has let lapse its right of first refusal, they shall have five (5) business days to re-exercise its right of first refusal and notify the Unit Owner of its decision (unless the original 30 day period above ends later, in which case the original deadline apples). This paragraph's shortened notice provisions shall only apply within six (6) months of the original notice of intent to sell.
The Association shall exercise the option by providing the Unit Owner with written notice of the Association's intent to exercise the option (which option may be assigned to a substitute buyer who will be an owner-occupant), at the same price and under the same terms and conditions contained in the written notice or upon such other terms and conditions as may be agreed to between such Unit Owner and the Association; whereupon the Association (or its substitute buyer) shall enter into a purchase and sale agreement to purchase of the Unit in accordance with the prevailing practice and time standards in the Boston Metropolitan area for the purchase of residential real estate.
In carrying out their right of first refusal, the Association shall follow the Waiting List Policy as written in Article XVI of the Bylaws. If the Unit Owner follows the Waiting List Policy and completes a sale or the Association exercises its Right of First Refusal, the the Unit Owner shall pay a Transfer Fee to the Associaiton pursuant to Paragraph 17 of this Master Deed.
Any potential buyer must read and acknowledge in writing their understanding of and agreement to the Master Deed, Bylaws, Rules and Regulations and other appropriate documents. A buyer must also attend an orientation process to be determined by the Condominium Association.
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