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.
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 actually 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.
Legal note: this is general information, not legal advice. Rules and requirements vary by state and by community, so it is worth checking with your association’s attorney to get an accurate answer for your specific situation.
