Cohousing-L Mailing List: Re: helping owners sell

[R Philip Dowds (rpdowds]

In Mass, Cornerstone Cohousing also has a right of first refusal:  In its most 
rigorous application, the seller must show the Association an executed purchase 
and sale agreement, at which point the community has 30 days to cut to the 
front of the line, and take over the deal for the same terms and conditions.

That’s the theory written into our condo docs.  In practice, we are always more 
passive, and use the thirty days for an informal effort to gin up some interest 
separate from the formal real estate marketing process.  We’re not sure we will 
continue with a “waiting list”.  We sort of hope that we can influence the 
transaction to come up with a buyer well-suited to our community, but in the 
end, highest offer usually trumps all other considerations.  Given our 
historically passive posture, what works to protect the community is that those 
unsuited to coho life tend to flee the transaction once they a get a glimpse of 
us.

RPD

On May 26, 2014, at 11:00 PM, Ken Winter <ken [at] sunward.org> wrote:

> 
> You have a right of first refusal?  That's a surprise - I don't think such
> a clause would be allowed under condo law here in Michigan. What state are
> you located in?  Are you chartered as a condo?
> On May 26, 2014 10:25 PM, "David Heimann" <heimann [at] theworld.com> wrote:
> 
>> 
>> Hello again,
>> 
>>        Someone at JP Cohousing has pointed out that even though we have
>> never directly invoked the right of first refusal clause in our Master
>> Deed, we nonetheless have it as a foundation for the processes we do use.
>> Everyone knows that we have the right to find a buyer ourselves (which
>> could be us).  A seller (and a buyer) therefore need to work with our
>> processes that I've outlined in my previous message.
>> 
>>        One doesn't have to actually invoke a right for it to be useful.
>> 
>> Regards,
>> David
>> 
>> 
>> On Mon, 26 May 2014, David Heimann wrote:
>> 
>> 
>>> Hello John and everyone,
>>> 
>>>        We at JP Cohousing do much of what folks have described earlier:
>>> 
>>> o  Maintaining an interest list, which we notify when a unit becomes
>>> available.
>>> 
>>> o  Having a marketing maven (or several) who helps the seller and the
>>> various prospects through the process.
>>> 
>>> o  Having information on what banks have given what mortgages to our
>>> various buyers.
>>> 
>>> o  Getting the word out, in addition to the interest list, to places such
>>> as local "sympatico" organizations, local newspapers, and Cohousing-L (of
>>> course!).
>>> 
>>> o  Having residents get the word out to organizations that they belong to.
>>> 
>>> o  Having several open houses, with residents volunteering to staff them.
>>> 
>>> o  Having several site tours, with resident volunteers.
>>> 
>>> o  Prospective buyers need to visit us at least once (possibly for a
>>> meal), and come to at least one General Meeting.
>>> 
>>> o  We have a "clearness process" for a committed buyer, which is similar
>>> in concept to the Quaker clearness process.  The buyer meets with a
>>> clearness committee consisting of several volunteer residents.  In the
>>> meeting, several questions are addressed, including:
>>> 
>>>        *  Does the buyer understand what they are getting into by
>>> joining a cohousing community, especially ours?
>>> 
>>>        *  Does the buyer understand that there are work obligations such
>>> as attending General Meetings, being active on at least one committee, and
>>> putting in at least a defined amount of work (current 4 hours) a month?
>>> 
>>>        *  Does the buyer understand what consensus decision-making is?
>>> 
>>>        *  Has the buyer read through the condominium documents (which
>>> include a lot of the above), and agree to them?
>>> 
>>>        *  What can the buyer offer us as a community member, and what
>>> can we as a community offer the buyer?
>>> 
>>>        *  After this discussion is complete, do you want to go forward
>>> with the sale?  (Notice that we have no up or down approval decision; the
>>> prospective buyer self-selects.  Notice also that having said that we do
>>> have a right of first refusal that we have never yet used.)
>>> 
>>> o  The formal process of an offer sheet, purchase and sales agreement,
>>> mortgage financing, and closing is between the seller and the buyer
>>> 
>>> Regards,
>>> David Heimann
>>> Jamaica Plain Cohousing
>>> 
>>> 
>>> -------------------------------------------------------------
>>>> Date: Sat, 24 May 2014 10:52:27 -0700
>>>> From: John Goldberg <johngoldberg [at] hotmail.com>
>>>> To: Cohousing dot org Listserv <cohousing-l [at] cohousing.org>
>>>> Subject: [C-L]_ Helping owners sell
>>>> 
>>>> I would like to know what other Cohousing communities do to help sellers
>>>> when they want to sell their homes.
>>>> 
>>> 
>>> 
>>> ------------------------------
>>> 
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