Cohousing-L Mailing List: Re: right of first refusal

[David Pierce (dpierce]

I need a "tutorial" on this.  What's to stop someone from offering 
the home at an inflated price to the select ones, and when they turn 
it down they put it on the market briefly at that price, and if 
(when) it does not sell, lower the price to something more likely to 
sell. (Sellers typically lower their prices in a buyers' market 
anyway).  Are we really talking about a covenant or agreement that 
restricts the offering price?  Or is the right of first refusal 
mostly vacuous because of pricing strategies (including but not 
limited to the one described here) that can easily circumvent it?
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At 12:54 PM 8/4/2010, Kristen Simmons wrote:

> Historically, the right of first refusal has been used to discriminate
> against prospective buyers, although I understand that this is not exactly
> the intent of cohousing communities. Other owners can band together to buy a
> unit instead of letting it be sold to a person of color, a single woman,
> etc., as well as people who might be perceived to be less community
> oriented. This is my understanding, based on limited research. Others
> probably know a lot more.
>
> FHA and VA Loans will not guarantee mortgages where the the condo docs
> include the right of first refusal. This language is condo docs will limit
> the mortgage options of potential buyers.
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