Right of First Refusal

What is the right of first refusal in an HOA?

This clause allows the HOA (or its members) to match a third-party offer before a property is sold. It gives the community a chance to purchase the unit or find a preferred buyer before the sale moves forward. Not all associations have this clause, and its enforceability varies by state.

Why is the right of first refusal important?

It gives the HOA limited control over who joins the community and preserves neighborhood standards. In some cases, it can also prevent properties from being sold to investors or entities that may not align with the association’s long-term interests.

How can you use “right of first refusal” in a sentence?

The board waived its right of first refusal so the home sale could proceed without delay.