Right of First Refusal (Condo)

Definition

Many NY condominium declarations grant the condo board (or association) a right of first refusal on unit sales. When a unit owner accepts an offer, the board can MATCH the price and terms and purchase the unit for the condo association — but cannot simply REJECT the buyer. In practice, condo boards rarely exercise this right because they typically lack the cash reserves to buy units. This is fundamentally different from a co-op board's approval right, which lets the board reject any buyer without putting up money. As a result, condo sales are rarely blocked by board action while co-op sales are frequently blocked.