First Right of Refusal

David, Here in the CV when a condo goes up for sale, the assoc. has first right of refusal, am I correct? Is this binding? After a Purchase and Sale Agreement has been signed by the buyer, notice goes up on the bulletin board. A person in the assoc. decides to use the rule of first right of refusal and buy the unit within the 30 days allotted for the stated price of the orginal purchase and sales agreement. Can the original buyer then do another purchase and sales agreement upping his orginal offer by several thousand dollars.

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Admin. Response.

Hi Marilyn,
This is an interesting question; and somewhat misunderstood.

The Florida Condominium Act: 718 FS speaks to "Right of First Refusal" only in the context of

Condominium Conversion from a rental format.

REF: Florida Statutes - 718.612

Extract follows:
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718.612 Right of first refusal.--

(1) Each tenant, who for the 180 days preceding a notice of intended conversion has been a residential tenant of the existing improvements, shall have the right of first refusal to purchase the unit in which he or she resides on the date of the notice, under the following terms and conditions:
(a) Within 90 days following the written notice of the intended conversion, the developer shall deliver to the tenant the following purchase materials: an offer to sell stating the price and terms of purchase, the economic information required by s. 718.614, and the disclosure documents required by ss. 718.503 and 718.504. The failure by the developer to deliver such purchase materials within 90 days following the written notice of the intended conversion will automatically extend the rental agreement, any extension of the rental agreement provided for in s. 718.606, or any other extension of the rental agreement. The extension shall be for that number of days in excess of 90 days that has elapsed from the date of the written notice of the intended conversion to the date when the purchase materials are delivered.
(b) The tenant shall have the right of first refusal to purchase the unit for a period of not less than 45 days after mailing or personal delivery of the purchase materials.
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No mention of this "right" is made in the context of straight "in fee simple" sales from one unit owner to another.
All this means is that this "right" must appear in your Bylaws.

The provision in our bylaws gives the "right" to the Board of Administration or to their designated assignee (could be another Unit Owner) who is ready, willing and able - to purchase under the same conditions offered by the prospective buyer.

The primary purpose of this Bylaw is to prevent Unit Owners (or more likely children of deceased Unit Owners) who just don't care to be bothered, from dumping the Unit at a rediculously low price and thus depressing property values.

There is no provision for - nor prohibition of the buyer making a counter-offer, other than the obvious fact that the contract - once executed is binding, and for the Seller to seek ways to accept would be unethical and deceptive.

A bidding war in Century Village would be a welcome relief from the depressed pricing we have been experiencing.

Dave