Helpful tips

Is there a right of first refusal in New York?

Is there a right of first refusal in New York?

A recent New York court case has affirmed that a non-profit’s Right of First Refusal (“ROFR”) is not an option to purchase a Low-Income Housing Tax Credit (LIHTC) property. Riseboro Community Partnership, Inc., formerly known as Ridgewood Bushwick Senior Citizens Council, Inc., v.

How many decisions have been published about the right of first refusal?

New York, by far, has the most published decisions involving the ROFR. Since 2001 alone, 31 New York judicial decisions have been published involving a right of first refusal; twenty-five of them arose from the inability of the parties to agree on the implementation of the provision and/or the failure of the provision to provide adequate guidance.

When to use rights of first refusal ( ROFR )?

A simple definition might be: If the owner of the property decides to sell the property, then the person holding the ROFR gets the opportunity to buy the property on the same terms first. That definition is simple and seems straightforward, but there are potential problems in that simplicity for both the party giving and the party getting the ROFR.

When does the seller have the right of first refusal?

The seller should have sole discretion to decide whether the ROFR holder has provided satisfactory evidence of its financial ability to close. The ROFR should also immediately be deemed terminated upon the assignment or sublet of the lease.

When do you have the right of first refusal?

The holder of the right of first refusal is holder of an option to purchase the real property “if and when the owner decides to sell to a third party at an agreed price”[.] Before a Unit owner fully executes a sale agreement to convey its property to a third party,…

Can a condominium exercise the right of first refusal?

It is quite rare and unusual for a condominium to, in fact, exercise the right. However, two recent decisions by the Appellate Division, First Department, are instructive as to the issues that may arise when a condominium elects to do so.

Can a mortgage broker ask for a right of first refusal?

A lender or mortgage broker may ask a borrower to agree to a refinancing RFR that obliges the borrower to work through the holder (i.e., lender or broker), or gives the holder the right to match any refinancing terms. Do not agree to this type of RFR, which, depending on its language, can gum up a sale or refinancing at better terms.

How did the right of first refusal work in Octavia?

The action in Supreme Court “ [arose] out of a failed real estate transaction between plaintiff Andrew Bittens and nonparty seller, whereby plaintiff alleges that the defendant The Board of Managers of the Octavia Condominium (Board) acted improperly in exercising its right of first refusal.”