DawnL6 (South Carolina)
Posts: 226
Posts: 226
Posted:
Can the board of directors date a rofr waiver the same date as the seller sold to the 3rd party?
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Right of first refusal
Started by DawnL6 • 8 replies • 142 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By DawnL6 on 09/04/2024 12:57 PM
Can the board of directors date a rofr waiver the same date as the seller sold to the 3rd party?
Can the board of directors date a rofr waiver the same date as the seller sold to the 3rd party?
Why not?
DawnL6 (South Carolina)
Posts: 226
Posts: 226
Posted:
Isn't the rofr filing giving the public notice to another offer?
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Right of First Refusal: A Guide for Real Estate Agents:
https://www.nar.realtor/residential-real-estate/right-of-first-refusal
https://www.nar.realtor/residential-real-estate/right-of-first-refusal
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
In a hot market, things can happen in a single day - before the listings and filings are made public.
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
Why would the Board hold a right of first refusal?
Yes, they can date it the same day and if they had no intention to exercise the option, they basically have to.
Yes, they can date it the same day and if they had no intention to exercise the option, they basically have to.
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
In some condo communities, the association has the right to buy individual units.
Depending on the characteristics of the community, the economy, and the unit itself, it may make sense to do so. For example, it can stop an investor group from acquiring enough units to de-convert the community to all rental property. Or a unit went into foreclosure and nobody bought it, so the association buying it is better than letting it sit empty and deteriorate. In the right situation, the association can recoup some or all of the unpaid assessments by doing this.
But it's not the norm, that's for sure, since so many communities don't have the excess funds for this sort of thing, and there are tax consequences. Most communities also don't have boards with the financial skills and long-term perspective to be successful at this.
Depending on the characteristics of the community, the economy, and the unit itself, it may make sense to do so. For example, it can stop an investor group from acquiring enough units to de-convert the community to all rental property. Or a unit went into foreclosure and nobody bought it, so the association buying it is better than letting it sit empty and deteriorate. In the right situation, the association can recoup some or all of the unpaid assessments by doing this.
But it's not the norm, that's for sure, since so many communities don't have the excess funds for this sort of thing, and there are tax consequences. Most communities also don't have boards with the financial skills and long-term perspective to be successful at this.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By CathyA3 on 09/06/2024 4:19 AM
In some condo communities, the association has the right to buy individual units.
Depending on the characteristics of the community, the economy, and the unit itself, it may make sense to do so. For example, it can stop an investor group from acquiring enough units to de-convert the community to all rental property. Or a unit went into foreclosure and nobody bought it, so the association buying it is better than letting it sit empty and deteriorate. In the right situation, the association can recoup some or all of the unpaid assessments by doing this.
But it's not the norm, that's for sure, since so many communities don't have the excess funds for this sort of thing, and there are tax consequences. Most communities also don't have boards with the financial skills and long-term perspective to be successful at this.
In some condo communities, the association has the right to buy individual units.
Depending on the characteristics of the community, the economy, and the unit itself, it may make sense to do so. For example, it can stop an investor group from acquiring enough units to de-convert the community to all rental property. Or a unit went into foreclosure and nobody bought it, so the association buying it is better than letting it sit empty and deteriorate. In the right situation, the association can recoup some or all of the unpaid assessments by doing this.
But it's not the norm, that's for sure, since so many communities don't have the excess funds for this sort of thing, and there are tax consequences. Most communities also don't have boards with the financial skills and long-term perspective to be successful at this.
Well said.
DawnL6 (South Carolina)
Posts: 226
Posts: 226
Posted:
Our masterdeed and rules and regulations state in excess of 30 days which gives the association time to vote and accept the property or waive its right.
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here