First Right of Refusal in Some Boston Luxury BuildingsDecember 17, 2016
When making an offer on a unit in a Boston luxury real estate condo building, buyers need to be aware of bylaws of some buildings, not all. The language clause to look out for relates to the “first right of refusal.”
This means that once a Boston luxury homes seller receives an offer, based on the rules of the condo association and the first right of refusal clause, the seller must present the offer to the owners of the building and if anyone interested, they can match the offer and buy it. The owners can opt to forego purchase, in which case the new buyer can proceed with the Boston luxury home purchase. Not all condo buildings have that language in their documents, but buyers should be aware either way.
The first right of refusal clause is a positive option for building owners in case they are thinking of maximizing their investment, or leveraging their control over who can buy into their building. However, for the Boston luxury real estate buyer, this is not a favorable experience. They have their heart set on a unit, but now have to wait and see if they have a competing offer from someone in the building.
Buyers should ask their Boston luxury real estate agent if a unit they are interested in has a first right of refusal before they submit an offer. This way, they are at least prepared for the process, and a good agent can formulate the offer in a way that will make it less palatable for the owners to match. Contact me if you have any questions, or would like to learn more about the real estate purchasing process in Boston.