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Subject: Condo association rights of first refusal to buy condos that are for sale: common?
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Author Messages
PaulJ6
(New York)

Posts:753


02/19/2020 3:49 PM  
I am buying a condominium in NYC. As with everything in NYC, it's a hassle. I'm curious if I've just been fortunate in other cities or if condo associations are onerous towards buyers.

In other cities, when I've bought condos, the condo association and property manager require a processing fee or something and some other paperwork at the closing, but that's all they can do. There is no right for the condo to buy the property that you want to buy, and no personal information or financial statements have to be given to the condo association.

In NYC, I'm having to submit personal and business reference letters, give a resume, show extensive financial information (including a balance sheet) and more to the condo board. The condo board has 30 days to exercise its right to buy the property that I want to buy. If it doesn't buy it, then I can buy it. But the condo association can't approve my purchase (unlike a co-op, which can).

I've bought in a co-op before and don't like dealing with the hassle of getting all of these references, preparing all of this personal information, etc. I thought a condo didn't require this paperwork, but it does.

Is this a "NYC condo" thing? Or do condos around the US also have these requirements?
MarkW18
(Florida)

Posts:748


02/19/2020 4:01 PM  
New York City is a different beast.
JohnC46
(South Carolina)

Posts:9323


02/19/2020 4:29 PM  
Paul

NYC or not, this is not an uncommon Bylaw in older Bylaws. It was to keep "undesirables" out. I know of no recent instance when the association actually bought the unit. In reality it is properly illegal but typically ignored.

I have seen Bylaw barring "people of color" and "Jews" from buying in. Despicable but still in some old Bylaws.
KerryL1
(California)

Posts:7052


02/19/2020 4:30 PM  
Never heard of that on this forum over several years. Have you Googled the topic?

I have heard that in FL the board can review similar items as you mention, but I haven't seen they have first right of refusal.

You've been following this forum for a while now and probably have noticed no or very few other poster from NYC who might have insights.
PaulJ6
(New York)

Posts:753


02/19/2020 4:32 PM  
Thanks, everyone. As part of my board package I am considering including a letter, waiving any and all rights to take part in anything relating to the building's governance, although that might cause the new building to wonder what's up. I want nothing to do with any of this stuff anymore, though.
JeffT2
(Iowa)

Posts:532


02/19/2020 4:44 PM  
Posted By PaulJ6 on 02/19/2020 4:32 PM
Thanks, everyone. As part of my board package I am considering including a letter, waiving any and all rights to take part in anything relating to the building's governance, although that might cause the new building to wonder what's up. I want nothing to do with any of this stuff anymore, though.



I suppose you can offer, but how can they hold you to it? Preventing an owner from participation would violate the governing docs.

AugustinD


Posts:2948


02/19/2020 5:47 PM  
Posted By PaulJ6 on 02/19/2020 3:49 PM
In NYC, I'm having to submit personal and business reference letters, give a resume, show extensive financial information (including a balance sheet) and more to the condo board. The condo board has 30 days to exercise its right to buy the property that I want to buy. If it doesn't buy it, then I can buy it. But the condo association can't approve my purchase (unlike a co-op, which can).
PaulJ6, have you looked at the condo's governing documents to see where exactly they say the COA can require these items and also buy the condo from the seller if, I presume, the board does not like the looks of a buyer?
PaulJ6
(New York)

Posts:753


02/19/2020 7:11 PM  
Yes. I’ve read the governing documents in detail.
SheliaH
(Indiana)

Posts:3063


02/20/2020 9:07 AM  
Posted By PaulJ6 on 02/19/2020 4:32 PM
Thanks, everyone. As part of my board package I am considering including a letter, waiving any and all rights to take part in anything relating to the building's governance, although that might cause the new building to wonder what's up. I want nothing to do with any of this stuff anymore, though.




I realize your last experience with HOA/condo boards may have been a shitshow, but if you're considering living in a building with one, that should have brought home the notion that you cannot have a "do what you wanna, just leave me the hell alone" attitude. You don't have to be on the board or attend meetings, but only focusing on what's going on within the four walls of your home doesn't always end well. You will have neighbors living next door and possibly above and below you - if something happens with them, it may affect our unit and if something happens to the entire building, that will also affect you. And then you may wish you'd paid more attention to how the place is run.

Do what you want (it's your money and your life), but maybe you just need to buy a house somewhere and be done with it - then you can live as you see fit and deal with your neighbors and home upkeep however you want.
AugustinD


Posts:2948


02/20/2020 10:00 AM  
Posted By PaulJ6 on 02/19/2020 7:11 PM
Yes. I’ve read the governing documents in detail.
Do they explicitly require submission of personal and business reference letters, a resume, and financial information (including a balance sheet)?
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Forums > Homeowner Association > HOA Discussions > Condo association rights of first refusal to buy condos that are for sale: common?



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