Have you heard “right of first refusal” pop up while buying or selling a condo on the Upper West Side and wondered what it really means for your deal? You are not alone. The process is specific to condos and it can affect timing, financing, and even who ultimately buys the home. In this guide, you will learn what a condo right of first refusal is, how it works on the UWS, the typical timeline and exceptions, and smart steps to keep your transaction on track. Let’s dive in.
ROFR basics in NYC condos
A condo right of first refusal, or ROFR, is a contractual option found in many condominium bylaws. When you sign a contract to buy or sell, the condo board gets a short window to purchase the unit on the same terms or to waive the right so your deal can proceed. Unlike co-ops that approve buyers, condos usually do not “approve” purchasers and instead rely on the ROFR mechanism. This condo versus co-op difference is key for UWS expectations, and it is well recognized in industry guidance on board powers and approvals in condominiums. (CooperatorNews overview of condo vs co-op board powers)
New York’s offering-plan rules require that any ROFR procedures be disclosed in the condo’s plan and bylaws, including timing, notice, and nondiscrimination language. These disclosure requirements are set by the Attorney General’s Real Estate Finance Bureau. (Offering-plan disclosure rules, 13 NYCRR)
How the process works
Once a seller accepts an offer and signs a contract, the building’s managing agent typically requests the buyer’s purchase application and supporting documents. The board’s decision window usually does not begin until the submission is complete, so quick, organized paperwork matters. Boards often ask for additional information, which can pause the clock until everything is in. (Commentary on application completeness and timing)
Most bylaws give the board about 20 to 30 days to exercise or waive the ROFR after receiving a complete package. In practice, many boards simply waive and allow the sale to proceed. (Typical 20–30 day windows and practice norms)
If the board exercises, it must buy on substantially the same terms or assign a designee to step into the deal. New York cases show boards sometimes use a designee or financing arrangement and courts look closely at whether the board followed its bylaws and acted in good faith. (Case example on designees and good-faith exercise)
Common exceptions appear in many bylaws, such as transfers to certain family members, trust transfers, sponsor sales of unsold units, or transfers by operation of law. Always check your building’s specific documents. (Sample bylaws showing typical ROFR exceptions)
Condo applications often include processing fees and review charges, which your managing agent will outline. Offering plans must disclose transfer procedures and fees, so review those early. (Offering-plan rules on procedures and fees)
Timing pitfalls and disputes to avoid
Two timing issues cause most headaches: when the clock starts and whether the board acts within its deadline. Courts have found that unreasonable delay or obstruction by a board can amount to a waiver or bad faith. (Recent decision on delay and waiver)
Courts also evaluate ROFRs under reasonableness standards. The key test is whether the board applied the bylaws in good faith and within the stated procedures, not whether a board prefers one buyer over another. (Reasonableness of ROFR provisions)
What it means on the Upper West Side
The UWS blends prewar co-ops with condo conversions and new towers. In many newer UWS condos, a ROFR is standard in the bylaws, while older co-ops rely on board approval rather than a ROFR. A good mental model is to expect a ROFR in condos and an approval process in co-ops. For context, projects like 200 Amsterdam illustrate the kind of modern condo stock where ROFRs are common. (Example of a newer UWS condo building)
In practice, boards rarely exercise because it requires cash or a financing partner, and because the building must match the deal terms. Most sales proceed after a written waiver. (Practice note on rarity of exercise)
Seller checklist on the UWS
- Locate the declaration, bylaws, house rules, and offering plan. These spell out ROFR timing, exceptions, required documents, and fees. The Attorney General’s Real Estate Finance Bureau maintains plan records, and your managing agent can help. (AG resource on condo offering plans)
- Build ROFR timing into your contract. Clarify what constitutes a complete application and the deadline for a waiver. Your attorney should outline what happens if the board exercises.
- Have the buyer complete the application fast. Application completeness often starts the clock.
- Get the waiver in writing. Do not rely on verbal assurances.
- Budget for review fees and possible document requests so you do not lose time.
Buyer checklist on the UWS
- Submit a complete application quickly. In many buildings, the clock starts only when your package is complete. (Guidance on completeness and clock mechanics)
- Review the offering plan and bylaws at contract. Know the ROFR timeline, exceptions, and required waiver before closing. (Offering-plan disclosure rules)
- Understand outcomes if exercised. Your contract is usually cancelled and your deposit refunded, and the board or its designee closes on the same terms. (Case example on board exercise mechanics)
- Plan for rate locks and move timelines. Add contingencies with your attorney to protect you if there is a delay or exercise.
If a board exercises the ROFR
If a board exercises, it should close on substantially the same terms in a set period, often within 30 to 60 days of notice, as stated in the bylaws. The third-party buyer typically receives a deposit refund and is released. If a designee is used, owners may want transparency on the arrangement to avoid conflicts. (Case example on designees and resale)
When to bring in counsel
Small procedural details drive many disputes. If your price is below market, the buyer profile is unusual, the board requests atypical conditions, or deadlines slip, engage counsel early. Practitioner guidance emphasizes that ROFR disputes often turn on timing, completeness, and strict bylaw compliance. (Practitioner overview of ROFR risks)
Final thoughts
A condo right of first refusal should not derail a well-prepared UWS sale or purchase. If you plan the timeline, submit a complete application, and secure a written waiver, you will likely move from contract to closing without drama. If you want a steady hand to navigate the process and coordinate with your attorney and managing agent, connect with Daniel Kramp for tailored guidance and a smooth path to the finish line.
FAQs
What is a condo right of first refusal in NYC?
- It is a clause in many condo bylaws that gives the board a short window to buy a unit on the same terms as your signed contract or to waive the right so your sale proceeds. (Offering-plan disclosure rules)
How long does a UWS condo board have to decide on ROFR?
- Most bylaws provide about 20 to 30 days after receiving a complete application to exercise or waive. (Typical timing and practice)
Can a condo board block a buyer without buying the unit?
- Generally no. Unlike co-ops, condo boards do not “approve” buyers and must either exercise the ROFR or waive it. (Condo vs co-op approval powers)
What happens to my contract deposit if the board exercises?
- The buyer’s contract is typically cancelled and the deposit is refunded, while the board or a designee closes on substantially the same terms. (Case example on exercise mechanics)
Are family transfers usually exempt from ROFR on the UWS?
- Many condo bylaws include exceptions for certain family or trust transfers, but you must confirm the exact language in your building documents. (Sample bylaws showing common exceptions)
Can delay by the board waive its ROFR?
- Courts have found that unreasonable delay or obstruction can constitute bad faith or a waiver of the right. (Recent decision on delay and waiver)
