Re: right of first refusal
From: David Pierce (dpiercepobox.com)
Date: Wed, 4 Aug 2010 13:20:23 -0700 (PDT)
I need a "tutorial" on this. What's to stop someone from offering the home at an inflated price to the select ones, and when they turn it down they put it on the market briefly at that price, and if (when) it does not sell, lower the price to something more likely to sell. (Sellers typically lower their prices in a buyers' market anyway). Are we really talking about a covenant or agreement that restricts the offering price? Or is the right of first refusal mostly vacuous because of pricing strategies (including but not limited to the one described here) that can easily circumvent it?
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At 12:54 PM 8/4/2010, Kristen Simmons wrote:

Historically, the right of first refusal has been used to discriminate
against prospective buyers, although I understand that this is not exactly
the intent of cohousing communities. Other owners can band together to buy a
unit instead of letting it be sold to a person of color, a single woman,
etc., as well as people who might be perceived to be less community
oriented. This is my understanding, based on limited research. Others
probably know a lot more.

FHA and VA Loans will not guarantee mortgages where the the condo docs
include the right of first refusal. This language is condo docs will limit
the mortgage options of potential buyers.
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