Cohousing-L Mailing List: Re: right of first refusal

[Diana Carroll (dianaecarroll]

That's one of many reasons we decided NOT to include such a covenant.
(Before we were even aware of the mortgage issue.)

On Wed, Aug 4, 2010 at 4:20 PM, David Pierce <dpierce [at] pobox.com> wrote:
>
> 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?
> _______________________________________
>
> 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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