Guidelines for Selling a Unit at TVCHA
Purpose of the Resale Guidelines
The following guidelines are intended to aid unit sellers and the community
by describing how to put the Bylaws provisions into practice.
Our objectives for these resale guidelines are:
- To clarify the community’s expectations of owners who sell their units.
- To assist the owner in selling their unit.
- To find buyers who want to live in cohousing, are aware of TVCHA’s policies and practices, and want to be an active participant in the TVC community.
Resale Provisions and Guidelines
I. Official Notification
A. The unit owner shall inform the TVCHA Board President in writing that the owner intends to sell the unit. [Bylaws 15.2]
B. The unit owner shall communicate their intention to sell to all TVC residents and give TVC residents an opportunity to express their interest in purchasing the unit.
C. The Community Team will provide the seller with access to the notification list and will put a notice on the TVC website. TVC residents may tell friends who they think are interested in TVC and cohousing.
II. The Association’s Right of First Refusal (RFR)
A. TVCHA or its designee has an exclusive right to purchase the unit for 45 consecutive days after receiving official notification that the unit is for sale. [Bylaws 15.2]. The RFR enables TVCHA either to purchase the unit or to designate a buyer. It does not give the Association any privileges or rights in terms of setting the purchasing price.
B. Putting the RTR into practice during the 45-day period. The Association’s main interest during this period is to help sellers find potential buyers who are interested in cohousing and the TVC community. Under rare circumstances, the Association may want to bid on a unit. In most cases, the Association’s interest will be served best by assisting sellers in finding buyers who are interested in cohousing. With regard to the Association’s right to designate a buyer, in most cases, the designee would be someone who is already negotiating with the buyer (see Provision IV).
III. Waiving the Right of First Refusal
A. The D.C. Condo Law allows a seller to request a waiver of the Association’s Right of First Refusal during the 45-day period. This request must be made in writing to the President of the Board of Directors.
B. The Board may grant the waiver under these conditions:
1. The seller is ready to negotiate with a buyer who has attended an
orientation or community meeting and has read the governing documents, -and-
2. The Association has no interest in purchasing the unit.
IV. Sales during the initial 45-day period.
To facilitate unit purchases during the initial 45-day period, these guidelines provide for the following:
A. Potential buyers must participate in an orientation and/or TVC meeting, and read the Bylaws and community policies, in order to learn about TVC. The Community Team will conduct orientations for potential buyers. Copies of the TVCHA governing documents are available for potential buyers. The unit seller will find these in a binder in the TVC office and on the TVC website.
B. The seller shall notify the Board President of the name and demonstrated interest in TVC of any person with whom the seller wishes to contract for sale of the unit.
C. The TVCHA Board may allow the sale to go forward either by waiving the
Association’s 45 day RFR period (as indicated in Provision III.B.) or by naming the potential buyer as TVCHA’s designee. The Board will ensure that a potential buyer has attended an orientation and/or a TVC meeting before issuing the waiver or naming the potential buyer as a designee.
D. The Board shall make its decision within 14 days of receiving notice from the seller.
E. TVC may not be involved in the actual sale, determining the price or related negotiations between the seller and potential buyer.
V. Beyond the Initial 45 Days: Open market sales.
A. If a sale has not been made within the initial 45-day period, the seller may choose to put the unit on the open market. Potential buyers still are required to learn about TVC and cohousing, attend an orientation and/or community meeting, and read the governing documents, as described in Provision IV. A. The buyer agrees to follow the Bylaws and community rules.
B. The seller shall inform the Board President in writing of an agreement to sell the unit (with sales price and name of the buyer). At this point, the Association has three days to exercise its right of first refusal by meeting the buyer’s price (Bylaws 15.2).
VI. Resale packet and certificate:
A. The seller must submit a written request to the management company to obtain a resale packet and certificate.
B. Upon receipt of the written request, the management company will provide the packet and certificate within 14 days. The seller pays the fees charged by the management company. (Bylaws 14.10).
C. DC Condo Law requires that either the management company or a law firm provide the resale packet and certificate.
Dated January 25, 2005 and posted to TVC-Members Message #9628, Wed Jan 26, 2005 12:03 am by Sandra Hinson and received no objections.
Superseded in 2010 with minor wording corrections.