After half day of showing we have a winner, and we are ready to right an offer. I usually call Listing agent before writing the offer, as devil is in the details.
Yes, the agent is thrilled but... this 2 bdr/2 bath condo is listed at $63K. Not a short sale. It is in the trust name. Trustee is out of state, and family members are out of state, not much interest in this property, want to sell.
However, the Board of Director for the Association tell agents that they would not allow any sale if the price is less than $75K. Why? Because they are trying to protect the values… But how can they force the Sellers to price the units higher, and how can they force the Buyer to agree to this arrangement?
It is stunningly simple. The Board has the right of first refusal, and they will disapprove any buyer if... the contract is penny short of $75K.
I can't believe it. So, I call the Association. Explain why I am calling, and they confirm it. They do not find any problem with it. All they want is that in the county record it shows $75K, and they can’t care less if there is a provision in the contract kicking back money to the Buyer for invented repairs.
Actually they are quite open about it. There are two units right now in this situation. There is no financing involved with both sales, so there would not be any mortgage fraud. It still does not sound kosher.
The Trustee is the attorney, and I learned that there was another attorney involved, and nothing happened. You want it, you write $75K…
This is the first time I deal with this, and I am really lost at this juncture. When the board decides what people should charge for their property, would they dictate what time they are allowed to pee…
Of course, this is their unit… but there is a legislative board
Did you have this experience and what did you do?
* Photo by CarbonNYC via Flickr.com
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