Closings glossary
Right of first refusal
The right to match an offer before a sale closes. In condominiums it is exercised or waived by the board, and the written waiver is delivered at closing.
What is a right of first refusal in a condo?
Quick Answer
The full definition
The right to match an offer before a sale closes. In condominiums it is exercised or waived by the board, and the written waiver is delivered at closing.
Also called: ROFR, Waiver of right of first refusal.
Which related terms should you know?
These are the terms that come up alongside right of first refusal in the same file.
- Offering plan
- The sponsor's filed disclosure document for a co-op or condominium, carrying its budget, share or common interest allocation, building rules and sponsor commitments.
- Common charges
- The recurring charge a condominium levies on each unit for building operations and reserves. Real estate taxes are billed to the unit directly and are not part of the figure.
- Flip tax
- A transfer fee charged by a co-op or, less often, a condominium when a unit changes hands. It is a creature of the building's governing documents, not a government tax.
- Covenant
- A recorded promise or restriction that runs with the land and binds future owners. Restrictive covenants limit what the property may be used for or how it may be built on.
- Assessment (co-op or condo)
- A charge levied by a co-op or condominium board beyond ordinary maintenance or common charges, typically to pay for a capital project. It is disclosed in the managing agent's closing letter.
Where does right of first refusal come up in a New York City closing?
A Long Island City condo board issues its waiver of the right of first refusal three weeks after the board package, clearing the way to schedule.
What else should you read before closing?
Questions this raises
- Can a condo board block a sale in New York?A condo board holds a right of first refusal, not an approval right, so it rarely stops a sale. What it can do is delay one by withholding the waiver.
- How long does a condo right of first refusal waiver take?Condo waiver letters usually issue two to four weeks after a complete application. What actually delays them, and how to keep the closing date intact.
- What documents do I sign at closing?Note, mortgage, title affidavit, settlement statement and transfer tax returns for buyers; deed and releases for sellers. What each document actual...
Building types
- Standard condoA New York City condominium unit: real property conveyed by deed, recorded in ACRIS, with an undivided interest in the common elements.
- New-development condoA first sale from the sponsor of a newly built condominium, governed by an offering plan, often delivered on a temporary certificate of occupancy.
- Investor and pied-a-terre condo purchaseA condominium bought to rent out or to keep as a second home, where sublet policy, entity ownership and non-resident tax questions drive the struct...
- CondopA building split into two condominium units, one commercial and one residential, where the residential unit is owned by a cooperative corporation.
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Legal Disclaimer: This page is general information about New York practice. It is not legal advice, it does not account for the terms of any particular contract, building or transaction, and reading it does not create an attorney-client relationship. This is attorney advertising. Prior results do not guarantee similar outcomes.