Rental Basics in 10022>Question Details

Grmanny, Renter in New York, NY

Is it pretty common for boards to excercise right of first refusal for a rental? Or does this apply more to sales?

Asked by Grmanny, New York, NY Sun Jun 3, 2012

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Hi Grmanny, agreed with most of my colleagues - right of first refusal is generally only associated with condos (co-ops have the power to flat-out accept or reject; condos can only exercise ROFR) and is extremely rare.

To exercise ROFR a condo needs to either become the tenant or the buyer of the unit and therefore must both utilize funds held in reserve and then also dispose of the unit they've just rented or purchased on behalf of the building. I've heard of it happening just once in my entire career (it was in a very unique circumstance).
Charlie Summers, Bellmarc Realty 917-376-1648
0 votes Thank Flag Link Sun Jun 3, 2012
I find it's not common, in fact Ive sold a ton of coops and just the other day had my first one exercise a right of first refusal. It's more common with condos.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Sun Jun 3, 2012
The short answer is no, its not common.
0 votes Thank Flag Link Sun Jun 3, 2012
Grmanny,
Condo boards have 30 day from receiving a board package to issue the waiver of right of first refusal and yes, this does apply both to sales and rentals. It is highly unusual to not get the waiver, because if they refuse it on a sale or a rental, they have to buy it or rent it. They don't want to. What they can do, though, is if it is not compete or has errors, they can keep kicking it back to you.
0 votes Thank Flag Link Sun Jun 3, 2012
In a condo rental, the Board will also issue a "waiver" of its right of first refusal to lease the unit.


Zita Alvarez Lo
Licensed Associate Real Estate Broker
Bus 212-350-2825
Cell 917-656-8112
zlo@elliman.com

PRUDENTIAL DOUGLAS ELLIMAN
205 East 42nd Street, 6th floor
New York, NY 10017
0 votes Thank Flag Link Sun Jun 3, 2012
I'm not sure about NYC but yes in Long Island. The major way to overcome that is to find out from your agent in advance, what is the boards minimum acceptable requirements such as credit score and income.
0 votes Thank Flag Link Sun Jun 3, 2012
Actually right of first refusal usually applies to condominiums. If you sell your apartment, the condo board has a right to purchase the apartment before the buyer, but it must be at the same price(rarely happens) otherwise you can go through with the sale
0 votes Thank Flag Link Sun Jun 3, 2012
Right of first refusal is more of an option for a sale and is also called a kick-out clause. It goes like this: I'll buy your house if I can sell mine and if someone else comes along that wants to buy your house and they do not have to sell one first then I will walk away if I have not sold mine after 72 hours from the other guys offer is accepted by you. I don't see it happening in rentals because it is usually the first one to give a deposit gets the rental.
0 votes Thank Flag Link Sun Jun 3, 2012
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