Cohousing-L Mailing List: Re: Resale provisions

[Sharon Villines (sharon]

On 4/20/2003 10:12 PM, "Rob Sandelin" <floriferous [at] msn.com> wrote:

> I heard about a group that had a resale provision, first option to buy, but
> when push came to shove, the group did not have the capital to buy the unit
> and no member was willing to carry it just to keep so and so from buying. If
> you have a first buy clause in your condo declarations, how do you fund the
> purchase? Without money, isn't a first buy option just a theory?

If group members can assemble the money for a down-payment they can rent the
property for the price of the mortgage and in some instances there may be a
willing buyer but the person is choosing not to sell to them. This kind of
provision protects the group from the animosity that may be the cause of the
person leaving in the first place.

Basically what you do if you have a willing buyer is "flip" the property,
holding simultaneous closings. The money changes hands on paper. The seller
has no recourse since the condo docs give the association first option to
match a contract price. Few sellers can just hold on to their property
forever.

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

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