When buying a condo in Daytona Area, watch for this clause. We use the Condominium Disclosure, and it specifies whether the Association has the first right of refusal, and also whether the Condo Owners have the right of refusal.

While refusal by the Association is relatively rare, watch for those condominiums where the condo owners have the first right of refusal. It can easily happen that when you think that you got a great deal, the owners may agree with you and take it away from you. All they need is to offer the same terms to the Seller, and your great deal is history.

Right of first refusalThe way they do it here in Daytona Beach Shores in those building in the Oceans, when the Buyer applies for approval, the contract is posted on the board and owners have 30 days to act on it. If they do, they will buy this condo on the same terms. If they do not do it, then the Buyer gets it.

So, rather than simple approval in other Associations, here not only you risk losing the deal, but you also would have to wait 30 days to get the approval. That would affect how fast you can close.

We closed on a short sale yesterday in Oceans Six in Daytona Beach Shores. Condo owners in Oceans Six do not have the right of first refusal, so this was not our concern. You should have seen the Association Manager's reaction when we told her that the Contract was for a bit over $163K. She was very upset, and said that they had owners who would have paid $230K for it.

If she were right, that deal would not have worked for our client.

Take Oceans Seven, which is the building next to Oceans Six. the condo owners have this right. We just have put a condo there on MLS… But when we represent the Seller, it does not really matter to our client. Sellers rarely care who pays them. A buyer, orcondo owner, exercising his/her right.

Just keep it in mind. This can be important.

image of Jon ZolskyIf you are looking for condos in Daytona Beach area, call me 386-405-4408.

Photo by  Leonid Mamchenkov via Flickr.com

 
This post has been included in Florida Real Estate News Volusia County, FL Real Estate News Daytona Beach, FL Real Estate News
Post is included in group: Condos, What you need to know?
Post is included in group: Advice for Buyers
Post is included in group: Realtors®
Post is included in group: All Things Florida
Post is included in group: Condo Specialists

32 Comments on Right Of First Refusal…What You Need to Know

20 Most Recent Comments Displayed Show All

JUL
15
729,231 Points 15 Featured Posts Outside Blog Called Shot Master

Jon, adding thirty days to the offer can become very tense for the buyers. How often is the First Right of Refusal exercised?
5:58am • #13
764,623 Points 2 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Jon, great post on how the Right Of First Refusal works....
6:26am • #14
487,831 Points 4 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

We have the first right of refusal here in Manhattan for almost every condominium building. 
6:48am • #15
619,969 Points 8 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

We find that the right of first refusal is very rare for it to be exercised, but it is a bylaw that protects the building and it's something that you have to work with, when buying in a condominium building.
7:08am • #16
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sharon - Oh, you flatter me. We have a Condo King here, and it is not me, nor that I would like to be one (LOL). But it is not me who called myself a king, you did it, so I feel better (LOL

Thank you
7:24am • #17
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wallace - sometimes CAMs think that they reall know real estate, which is only half true. It was a well priced short sale with some concession not shown on the contract, and the fact that we got it through the BPO and the Short sale Lender, while representing the Buyer, says that we offered the right price for it and we able to support it.
7:27am • #18
551,809 Points 146 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

That's good to know, Jon.  When we come down and buy, you'll have to steer us in the right direction.  Have a great week.
7:42am • #19
983,465 Points 106 Featured Posts Localism Sponsor Outside Blog

I guess it depends on which side of the fence you want to sit. As a buyer, you probably don't want the condo association to have a first right of refusal. As a condo owner, having first right of refusal in the HOA probably better protects the value of your individual unit.
7:46am • #20
836,492 Points 69 Featured Posts Outside Blog Called Shot Master

This is an excellent Real Estate tool if wielded correctly...Also, I would limit the performance to 3 days not 30 for right of refusals...I do recognize that each deal has its own dynamics however...good post Jon
8:18am • #21
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Thank you, Pamela. You are very kind to me.
11:52am • #22
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Sally & David - of course. It is good for the buyer to know that if they are looking at several condos, the risks with those, that allow condo owners to match the terms and take over, are higher, expecially, when you think that this is a great deal.
11:54am • #23
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Michael - absolutely right about 30 days. And no, it is not something that happens every day. Never happened to me, but could have happened if I did not know about it.

Knowing it helps you avoid those lowball offers, as we show buyers the numbers and tell them that anything less than a certain number cold trigger an owner jumping in and taking over.
11:56am • #24
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Barbara - thank you.
11:57am • #25
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Morgan - I am sure it is common for condominiums anywhere in the country, and I am sure that agents like, who do sell condominiums, know about it very well

Thank you
11:58am • #26
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Eileen - very true. It is not good, it is not bad, it is what it is. Our job is to know about it and warn the Buyers of it, and explain what it means for them.
11:59am • #27
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Mike - just come (LOL)
12:00pm • #28
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Elizabeth - you are right on the money. I am not saying that it is bad, even when I am on the Buyer's side. It simply has some added risk for the buyer in terms of time, as if they lose the unit, they need time to buy another one, and we often deal with people who are here for this particular purpose, and they want to leave knowing that tis is a done deal, and they only have to wait for the closing.

In this situation if they look at two condos and one does have that provision in the by-laws, and the other doesn't, I would warn them of the risks and would tend more to the one where the unit can't be taken by any existing condo-owner.
12:03pm • #29
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Richie - the reason it is 30 days here is because this is how it was set up when the by-laws were adopted, and it was very long ago. The other reason is that overwhelming majority of people use it as vacation condos, and the news of the unit for sale will travel from their friends in the building.

It is more like a word of mouth thing.

I asked the manger whether he notifies them via email, and he said "No"
12:05pm • #30
1,651,981 Points 134 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Interesting post.  We do not have condos and do not deal with this.  I'm learning something constantly on AR.
7:05pm • #31
1,210,444 Points 118 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Judi - and I do not work with farm areas, and I learn from your blogs. I still remember that fascinating blog posts about cows and newspapers... :)
8:37pm • #32

20 Most Recent Comments Displayed Show All


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Jon_photo_condo Ambassador_large

Jon Zolsky, your Daytona Beach, Florida connection

Daytona Beach, FL

More about me…

Jon Zolsky, Daytona Condo Realty LLC, 386-405-4408

Address: 313 S Atlantic Ave., Suite A, Daytona Beach, FL, 32118

Office Phone: (386) 255-5355

Cell Phone: (386) 405-4408

Email Me

hit counters View Jon Zolsky's profile on LinkedIn


Listings

Links

Archives

RSS 2.0 Feed for this blog