I am a condo owner and there are 10 co-owners in our condominium association. Under the terms of our agreement, whenever one of our condo owners lines up a buyer for their unit, the other condo owners have the right of first refusal to buy the unit at that price, either individually or as a group. The purpose of this was to protect our property values from falling should some owner wish to sell at such a deep discount that our comparables would be affected and we would all lose value.
Now a realtor (who also happens to be our condo assn. Pres.) has lined up a buyer for one of our units and that buyer is marginal credit wise, needing FHA financing support (typically only 3% down from buyer to purchase). The realtor is asking us to eliminate our right of first refusal, claiming the FHA won't support a mortgage for same if that right is still there. If we give up a right, I say we deserve a FEE to compensate for additional risk.
What would appropriate fee be for this?
2007-12-21
07:02:19
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4 answers
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asked by
John S.
5
in
Renting & Real Estate