Posted on: 01st Apr, 2010 08:29 pm
Does first right of refusal applies to an REO property? The property is an REO where there are 4 tenants who have not paid rent for over a year. The bank tried to evict and was not successful and asked the agent to put the property on the market occupied. Tenants were informed that the property will be put on the market and were given a chance to see if they wanted to purchase the property. Tthe agent send all the documents to the tenants (AN OFFER OF SALE WITHOUT A THIRD PARTY SALE CONTRACT) Before the 30 days were up, the agent was informed by DC Dept of Housing & Community Developement that First Right of Refusal does not apply to REO. Agent gets a cash offer, submit to the bank and gets it ratified. Should agent proceed to settle.
As far as I know, in certain cases, the first right to refusal applies to a REO property. However, in this case as the DC Department of Housing and Community Development has said that the first right of refusal does not apply to REO, I would suggest the agent to contact an attorney and take his opinion in this regard. He will be able to guide him in a best possible way.