Before Selling a Residential Lot
When a residential lot owner receives an acceptable bona fide offer, the right of first refusal process must be followed before the lot may be sold to the outside buyer.
Bona Fide Offer
The process begins after the seller receives a bona fide purchase offer that is acceptable to the seller.
Written Notice Required
Offerings must be made in writing through a trackable delivery method with a record of receipt.
10-Day Response Window
Each offeree has ten days after receipt of the offer to accept or refuse in writing.
Who Must Be Offered the Lot?
The offering is made successively. There is no need to notify any other individuals or parties.
Seller Process Overview
This overview is intended to help members understand the general steps in the process.
Receive an Acceptable Offer
The residential lot owner receives a bona fide offer to purchase the lot that is acceptable to the owner.
Prepare Written Offerings
The seller offers to sell the lot at the same price and terms contained in the bona fide offer.
Send Notice by Trackable Delivery
Notices must be sent by certified mail, registered mail, or national courier service such as FedEx or UPS, where there is a record of receipt.
Allow the Response Period
Each offeree has ten days after receipt of the offer to accept or refuse and must notify the seller in writing.
Keep Records
The seller is responsible for keeping records establishing the date the offers were received by each offeree.
Proceed if All Refuse
If all offerees refuse or do not purchase within the required time, the seller may proceed with the buyer who made the bona fide offer, subject to membership approval requirements.
Approved Delivery Methods
Offerings and responses must be in writing and sent through a method that creates a record of receipt.
Certified Mail
Acceptable if there is a record of the date of receipt.
Registered Mail
Acceptable if there is a record of the date of receipt.
National Courier
Services such as FedEx or UPS may be used where there is a record of receipt.
Timing Notes
While each offeree retains their individual right of first refusal for ten days following receipt, notices may be sent on successive days to help move the process forward.
Article 12.01 Description
Whenever the owner of any residential lot in the Development shall receive a bona fide offer to purchase said lot which is acceptable to such owner, the owner/prospective seller shall then offer to sell said lot at the price and on the terms contained in such bona fide offer, first to the owner of the lot on the right of the prospective seller’s lot, and next to the owner of the lot on the left of the prospective seller’s lot, and finally to the Association or its assigns.
There is no need to notify any other individuals or parties. Such offerings shall be made successively and in writing, sent via certified mail, registered mail, or through national courier service such as FedEx or UPS, where there is a record of the date of receipt. It is the prospective seller’s obligation to keep records establishing the date the offers were received by each offeree.
Each offeree shall have ten days after receipt of the offer to accept or refuse, and notify the prospective seller, in writing. Notice of acceptance or refusal of the offer shall be in writing, sent to the prospective seller via certified mail, registered mail, or through a national courier service such as FedEx or UPS, where there is a record of the date of receipt.
While each of the offerees retain their individual right of first refusal for ten days following receipt, in an effort to more efficiently move through the process, the prospective seller may send the required notices on successive days, such as sending the first letter to the owner on the right on day one, the second letter to the owner on the left on day two, and the letter to the Association on day three.
The term “receipt” is defined as the date the letter has entered the postal or courier system. If all offerees refuse to purchase said lot at the price and on the terms proposed by the prospective seller within the time provided in this Article, the prospective seller shall be free, subject to the limitations contained in Paragraph 9.01 of these Restrictions requiring the purchaser to have been approved for membership in the Property Owners Association, to sell said lot to the party who shall have made said bona fide offer at the price and on the terms as aforesaid.
The “lot on the right” for purposes of this Article 12 shall be the next lot on one’s right hand as one faces the rear of one’s own lot.