What is the right of first refusal for condominium associations and cooperative corporations?
In 1988, the Hawaii State Legislature enacted a law to give condominium owners associations a right of first refusal to buy the leased fee interest if the lessor decides to sell to anyone other than the existing individual apartment owners. At least 75% of the unit lessees must approve of the purchase, or the lessor can complete his sale of the fee to another party. The intent of this law is to encourage negotiation for a leased fee sale between lessors and condominium or cooperative owners or their associations or corporations. CONCLUSION As described in this article, leasehold ownership of apartment units involves a unique relationship and agreement between the parties to the apartment lease. Everyone considering the purchase of a leasehold apartment unit needs to understand the advantages and disadvantages of leasehold ownership in general, especially the impact of rent re-negotiation and lease expiration. Reading this article is one step in that process. The next step is to obtain
Related Questions
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