Re: Resale Policy
From: Sharon Villines (sharonsharonvillines.com)
Date: Tue, 12 Nov 2002 10:13:01 -0700 (MST)
On 11/11/02 8:08 PM, "Raines Cohen" <rc2-coho-L [at] raines.com> wrote:

> On 11/11/02 2:21 PM, Sharon Villines < sharon [at] sharonvillines.com> wrote:
> 
>> 15.2 Sale of Units. Upon notification of an Owner's intent to sell, Takoma
>> Village Homeowners Association or its designee shall have the exclusive
>> right to purchase the unit for forty-five (45) days. If, after a unit has
>> been on the open market, an offer is received, the Association shall have
>> three (3) days to exercise its right of first refusal.
> 
> Have there been any resales? Has the HOA exercised its option? Would it
> take a consensus decision of the whole group, including the seller, to
> choose to exercise such an option? Has authority been delegated to any
> group, like a board or executive committee? Does every seller have to
> wait 45 days before marketing the unit / taking outside offers? Does the
> HOA have any actual policies as to when to exercise such an option? The
> language about first refusal makes it sound like it's a matter of meeting
> the offer price... but the 45-day clause sounds like it could be avoided
> by the seller setting a high price initially to deter the HOA then
> reducing the price for subsequent marketing/promotion. Does the HOA
> maintain a waiting list or other pool of buyers?

We have just been notified of our first resale so of course we have not
addressed any of these questions. I can give you my version of the thinking
of those members with whom I have discussed this topic.

The Bylaws give no restrictions other than the ones stated. The seller could
list her property anywhere but the sale could not be finalized until 45 days
plus 3. As I understand the legal situation the HOA could buy the unit and
sell it at the same time to a buyer of its choice, thus no funds other than
incidental legal fees would be required -- the legal transactions take place
essentially simultaneously. The 3 day window is so the seller cannot set a
high price for 45 days and then sell at a lower price to someone else. The
three days gives the HOA the right to buy the property at the agreed upon
price. The HOA would only have to meet the contracted price.

This provision protects the community from having a unit sold vindictively
or an estate or court selling a unit without understanding the nature of a
community.

We do have a list of interested buyers although I'm not sure it is as
organized as some of us would like it to be. I personally think we should
have an "active" waiting list that requires a $50 deposit that is refundable
when the person withdraws from the list. This would keep the list "real" and
avoid hurt feelings if someone thinks they are on the list and we fail to
notify them because we forgot them or didn't have a current address.

We also have current owners who are interested in larger or small units and
people now renting rooms who are waiting to buy units. Those of us with whom
I've discussed this, believe current owners should be given priority and
foresee the HOA acting on behalf of a current owner if necessary. A member
who is leaving could presumably just not want to do business with another
particular member so having the HOA step in could facilitate things.

The goal of working out differences between people is all well and good
except when there are time pressures and limited resources (only one unit up
for sale within the foreseeable future).

Sharon
-- 
Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org

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  • Re: Resale Policy Raines Cohen, November 11 2002
    • Re: Resale Policy Sharon Villines, November 12 2002

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