What is the Right of First Refusal?
In the event that a condominium unit owner (Selling Unit Owner) wishes to sell, assign or transfer his unit or rights thereto, he shall first offer such unit (Offered Unit) to the tenant (if unit is rented) and other owners of units in the project (Other Unit Owners) through a written notice to the Condominium Corporation addressed to the Corporate Secretary specifying the price, terms and conditions of his offer.
What is the legal basis of the Right of First Refusal?
The legal basis of the Right of First Refusal is the Articles of Incorporation and By Laws, and Republic Act No. 4726 (The Condominium Act). The Right of First Refusal is legal and binding.
What does the relevant provision in Republic Act No. 4726 (The Condominium Act) state?
The relevant provision of Republic Act No. 4726 (The Condominium Act) is Section 6, (g) and it states:
“SECTION 6. Unless otherwise expressly provided in the enabling or master deed or the declaration of restrictions, the incidents of a condominium grant are as follows:
(g) Each condominium owner has also the absolute right to sell or dispose of his condominium unless the master deed contains a requirements that the property be first offered to the condominium owners within a reasonable period of time before the same is offered to outside parties;”
Where are unit owners/members informed about the Right of First Refusal?
For the reference of the unit owners/members, the Right of First Refusal is contained in the condominium Handbook under the section on House Rule and Regulation on the Disposition of Units and Right of First Refusal.
1.Articles of Incorporation and By Laws
2.Annex A of the Articles of Incorporation: Rights of First Refusal
3.Republic Act No. 4726 (The Condominium Act).