|Re: right of first refusal||<– Date –> <– Thread –>|
|From: Mabel Liang (mabeltwomeeps.com)|
|Date: Thu, 5 Aug 2010 11:46:27 -0700 (PDT)|
I'll have to ask... -- Mabel :-) Mabel Liang mabel [at] twomeeps.com Software Engineer turned Gardener ---------------------------- Original Message ---------------------------- Subject: Re: [C-L]_ right of first refusal From: "Diana Carroll" <dianaecarroll [at] gmail.com> Date: Thu, August 5, 2010 12:31 pm To: mabel [at] twomeeps.com "Cohousing-L" <cohousing-l [at] cohousing.org> -------------------------------------------------------------------------- > If you happen to know, who did your folks refinance with? > > Our experience has been that individual banks who handle their own > loans ("portfolio loans") rather than resell them to Fannie Mae are > more flexible. Unfortunately their rates are also not usually as > good. > > - Diana > > On Wed, Aug 4, 2010 at 11:38 PM, Mabel Liang <mabel [at] twomeeps.com> wrote: >> >> Here at Cornerstone Village Cohousing, Cambridge, MA >> http://www.cscoho.org >> , some folks have recently refinanced without any trouble. And we do >> have >> a right of first refusal in our documents. >> >> Our Master Deed includes language (see below) which means that the right >> of first refusal does not apply in the case of a foreclosure, etc. I >> don't know if that makes banks more comfortable. The entire Master Deed >> is at our web site, for anyone who wants to peruse it. >> >> In addition, we have language which says "1. the right to purchase is >> exercisable only as a means of insuring owner-occupancy of the Unit that >> is being sold, or for some other valid purpose that serves the best >> interest of the Association and its members;" plus "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 preference." >> >> Also, we have the right to assign our right to purchase, so in practice >> we >> would most likely have someone on our waiting list purchase the unit as >> opposed to the Association doing so. >> >> My interpretation of our current policy does not allow a bidding war >> once >> the owner has agreed on a price and conditions. There are those who >> either disagree or think it should be changed, saying that that's not >> how >> real estate deals work. I include our current policy below, as well. >> >> >> --------------- >> >From the Master Deed: >> >> The Association will not have this right of first refusal with respect >> to >> any lease, sale or transfer of a Unit in connection with a mortgage >> foreclosure (or the acceptance of a deed in lieu of the foreclosure) or >> with respect to any sale or transfer by the mortgage holder or other >> party >> who acquired the Unit in connection with the foreclosure or >> deed-in-lieu. >> Such right of first refusal shall not impair the rights of a First >> Mortgagee to: >> >> (i) foreclose or take title to a Unit >> pursuant to the remedies provided >> in its mortgage; or >> >> (ii) accept a deed (or assignment) in lieu of >> foreclosure in the event >> of default by a mortgagor; or >> >> (iii) sell or lease a Unit so acquired by the >> First Mortgagee; >> >> ---------------- >> >>> Cornerstone Cohousing >>> Unit Sale and Waiting List >>> Presented to General Meeting on March 20, 2004 by the Membership >>> Committee CONSENSED >>> >>> Rationale: >>> 1. To outline the procedure to be followed when a unit becomes >>> available for sale and the guidelines for the Waiting List. >>> 2. To support the seller in having her/his terms for the sale met. >>> 3. To facilitate the identification of interested buyers/ >>> prospective Cornerstoners who appear to be committed to the >>> Cornerstone vision. >>> 4. To follow the precepts we placed in the Master Deed. >>> >>> Guidelines: >>> 1. The seller or the seller's agent is to hand deliver a written >>> notice (not via e-mail) of intent to sell to the Chair, or Chair >>> designee, of the Cornerstone Managing Board and provide copies to >>> the board members (this can >>> be via e-mail). This notice is to include the price and terms and >>> any >>> other special >>> circumstances, in keeping with Cornerstone's bylaws. >>> 2. Within twenty-four hours the Chair of the Managing Board >>> acknowledges receipt of this notice of intent to sell and states the >>> time of receipt, which is the start of the 30-day review. >>> 3. Also within twenty-four hours the notice of intent to sell is >>> sent out by the Membership Committee to the Cornerstone community >>> and the Wait List. >>> This will include (a) contact person; (b) the respond-by date; (c) >>> that a prospective buyer must include evidence of ability to finance >>> (e.g., a pre-approval). >>> 4. Responses will be accepted through day 15 by the Membership >>> Committee. >>> 5. Days 16 to 18 will be used to prioritize the responses. >>> 6. Day 19 - 20 the first priority will be notified by the >>> Membership Committee. >>> 7. The first priority person has from Day 21 - 25 to sign a >>> purchase and sale agreement. >>> 8. The Membership Committee will work together with seller to >>> ensure that Waiting List members get to view the unit. >>> 9. If there are no viable responses to this outreach by Day 15, >>> later responses will be considered until Day 30 but will not delay >>> seller from selling unit on open market after day 30. (1) >>> >>> Notes: >>> 1. It is recommended that the seller (for her/his own benefit) not >>> sign an agreement with a realtor until the 30 days have transpired. >>> 2. The Master Deed states that units are not to be purchased solely >>> for investment purposes. >>> >>> Priorities for Use of Cornerstone's Right of First Refusal (2) 1. >>> The first priority would be a current owner of Cornerstone if one >>> wishes to purchase the unit for sale on the seller's terms and thus >>> vacate her/his own unit 2. The second priority would be Waitlist >>> Members who are current as of the start of the 30-day period, by >>> number. >>> 3. Interested parties not on the Wait List. >>> >>> Waiting List: >>> A person may be on the Cornerstone Waiting List by meeting the >>> following >>> requirements: >>> a. Expresses interest in Cornerstone and its Vision. >>> b. Attends a general meeting or a Community meal and other >>> functions as possible. >>> c. Pays $10.00 each year (after confirmation of continued interest) >>> to the Cornerstone Membership Committee. >>> d. As of the date of the establishment of this Waiting List, any >>> people known to have previously expressed interested in Cornerstone >>> up to this date, will be notified to determine their current >>> interest in being on the Waiting List. Those who respond back >>> within 30 days communicating their interest will be assigned a >>> Waiting List number by lottery. >>> e. Subsequent interested parties will be listed according to when >>> their Waiting List fee is received. >>> f. All resident non-owners interested in purchasing a unit should >>> be on the Waiting List. >>> >>> Footnotes: >>> (1) If the 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, >>> he shall notify the Board as set forth above; in which case the >>> Board shall have five (5) business days to notify the Unit Owner of >>> its decision. This paragraph s shortened notice provisions shall >>> only apply within six (6) months of the original notice of intent to >>> sell. (Cornerstone Master Deed) >>> >>> (2) Section 17 of the Master Deed describes exemptions from the >>> Right of First Refusal as: excepted from the right of first refusal >>> shall be a conveyance or transfer to the Unit Owner s parent, child, >>> sibling, spouse or to a domestic partner as defined in City of >>> Cambridge Ordinance Chapter >>> 2.119 as existing on the date hereof; and Units restricted under >>> Section 11(b). 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 preference. A transfer by will or >>> intestate succession shall not be covered by this Section. (3) >>> >>> (3) Please note that the transfer itself by will or intestate is not >>> subject to Cornerstone s right of first refusal. However, if >>> inheritors sell the unit, they are subject to Cornerstone s right of >>> first refusal. >> >> -- Mabel :-) >> >> Mabel Liang >> mabel [at] twomeeps.com >> Software Engineer turned Gardener >> _________________________________________________________________ >> Cohousing-L mailing list -- Unsubscribe, archives and other info at: >> http://www.cohousing.org/cohousing-L/ >> >> >> > >
- Re: right of first refusal, (continued)
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