Property Ownership
In Minnesota, a homeowner's association (HOA) has a right of first refusal in the CC&Rs. When a unit owner receives a purchase offer, they must:
AReject the offer and let the HOA buy the unit
BFirst offer the unit to the HOA at the same terms before accepting any outside offer✓ Correct
CNotify the HOA within 30 days after accepting an offer
DIgnore the provision since it is unenforceable in Minnesota
Explanation
A right of first refusal gives the HOA the opportunity to purchase the unit on the same terms offered by a third-party buyer before the owner can accept that offer. The owner must present the offer to the HOA first.
People Also Study
Related Minnesota Questions
- A Minnesota seller accepts an offer and the parties have a binding purchase agreement. The seller then receives a higher offer. The seller may NOT accept the second offer because:Contracts
- A Minnesota commercial tenant's building is being sold. The tenant has a right of first refusal in their lease. When the landlord receives an offer from a third party, the tenant must be notified:Property Management
- A Minnesota property seller accepts a buyer's offer but then receives a backup offer at a higher price. Can the seller cancel the first offer to accept the second?Contracts
- In Minnesota, an agent who receives an offer on a listed property must present the offer to the seller:Agency
- A Minnesota licensee must present a purchase offer to the seller even if:Agency
- A Minnesota condominium association that refuses to allow a wheelchair ramp to be installed at a unit owner's private entrance violates:Fair Housing
- In Minnesota, the order of priority for liens is generally 'first recorded, first in right,' EXCEPT for:Escrow & Title
- A Minnesota seller accepts a buyer's offer and signs the purchase agreement. Before the buyer receives notice of acceptance, the seller wants to withdraw. Under contract law, the seller:Contracts
Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Study This Topic
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →