What is a right of first refusal?
A right of first refusal is a clause allowing the HOA, or its members, to match a third-party offer before a property sale goes through, giving the community a chance to purchase the unit or steer it toward a preferred buyer first. An HOA can’t grant itself this power midstream, though, it only exists where the recorded declaration spells it out or a state statute creates it, so the clause has to already be on the books before the association can rely on it.
Why does a right of first refusal matter?
Not every association has this clause, and where it exists, enforceability varies by state, which makes it worth confirming exactly what your governing documents grant before assuming the community has this kind of leverage over a sale.
When You’ll Run Into This
This becomes relevant the moment a unit goes up for sale in a community whose documents include this clause, since it can add a real step to what would otherwise be a straightforward transaction.
