Cohousing-L Mailing List: Re: Right of First Refusal

[Dave and Diane (daveanddee]

Hi Susan,
We have Right of First Refsual at JP Cohousing in Boston. It doesn't work 
quite the same way as Rob described. We have it set up so that the community 
can MATCH the price from someone on the waiting list. Hint: Make the waiting 
list fairly easy to get on! Here is the process as described in our Master 
Deed. I can't tell you about California, but you can do some research and 
fine that out on the web. Good luck!
--Diane Simpson
  JP Cohousing, Boston MA

16.     Right of First Refusal.  Except for the first conveyance of any Unit by 
the Declarant, the Association shall have a right of first refusal with 
respect to the transfer of any Unit, which shall be exercisable as a means of 
insuring owner-occupancy of a Unit and to insure the continuance of the 
mission of the Condominium set forth herein and in the Declaration, but only 
upon the terms and conditions set forth herein.  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 orientation.  A transfer by will or 
intestate succession shall not be covered by this Section, nor shall a 
transfer by a Unit Owner to a spouse, domestic partner, parent, child, 
grandchild, sibling, first cousin, niece, nephew, aunt, or uncle, provided 
that said persons have completed the Jamaica Plain Cohousing Clearness 
Process.

        Whenever a Unit Owner shall desire to sell, dispose of or otherwise 
convey a Unit, the Unit Owner shall provide written notice to the Managing 
Board of the Association containing the exact terms and conditions which the 
Unit Owner has received from another purchaser, and/or is willing to accept.  
The Association shall thereafter have thirty (30) days to exercise the option 
or notify the Unit Owner of its intention to waive the right of first 
refusal.  Such Unit Owner shall be prohibited from transferring the Unit 
unless and until the thirty (30) day period has elapsed without exercise of 
this option by the Association as set forth below.  

        If, after the Association has waived its right of first refusal, the 
proposed 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, the Unit 
Owner shall notify the Board as set forth above; in which case the  
Association shall have five (5) business days to exercise its right of first 
refusal and notify the Unit Owner of its decision (unless the original 30 day 
period above ends later, in which case the original deadline apples).  This 
paragraph?s shortened notice provisions shall only apply within six (6) 
months of the original notice of intent to sell.

        If the Unit Owner has not identified the prospective buyer in the 
initial 
notification to the Association (i.e., has provided the Association with a 
price they are willing to accept), or the prospective buyer has changed since 
the original notification, the Unit Owner must identify the prospective buyer 
prior to the sale or transfer of the Unit.  If the Association at that time 
has waived or has let lapse its right of first refusal, they shall have five 
(5) business days to re-exercise its right of first refusal and notify the 
Unit Owner of its decision (unless the original 30 day period above ends 
later, in which case the original deadline apples).  This paragraph?s 
shortened notice provisions shall only apply within six (6) months of the 
original notice of intent to sell.

        The Association shall exercise the option by providing the Unit Owner 
with written notice of the Association?s intent to exercise the option (which 
option may be assigned to a substitute buyer who will be an owner-occupant), 
at the same price and under the same terms and conditions contained in the 
written notice or upon such other terms and conditions as may be agreed to 
between such Unit Owner and the Association; whereupon the Association (or 
its substitute buyer) shall enter into a purchase and sale agreement to 
purchase of the Unit in accordance with the prevailing practice and time 
standards in the Boston Metropolitan area for the purchase of residential 
real estate.

        In carrying out their right of first refusal, the Association shall 
follow the Waiting List Policy as written in Article XVI of the Bylaws. If 
the Unit Owner follows the Waiting List Policy and completes a sale or the 
Association exercises its Right of First Refusal, the the Unit Owner shall 
pay a Transfer Fee to the Associaiton pursuant to Paragraph 17 of this Master 
Deed.

        Any potential buyer must read and acknowledge in writing their 
understanding of and agreement to the Master Deed, Bylaws, Rules and 
Regulations and other appropriate documents.  A buyer must also attend an 
orientation process to be determined by the Condominium Association.

Message: 6
Date: Mon, 09 Oct 2006 19:03:46 -0700
From: "Susan L. Hedgpeth" <hedgpeth [at] berkeley.edu>
Subject: [C-L]_ Right of first refusal
Hi all,


We'd like to hear from other communities that have looked into or set up 
right of first refusal. How, exactly, does it work? Do you know if it's 
legal in California? Have you actually exercised the right of first refusal 
yet? How did you/would you decide if concerns are serious enough to use 
this right? How would you handle the financial end?