Delaware Code Title 25 Sec. 7029 – Right of first offer; response required by homeowner association
(a) A homeowner association must respond in writing to the notice of a right of first offer and send the response by overnight service with signature receipt to the community owner or the community owner’s agent or attorney within 30 calendar days from the date of the mailing of the notice sent by the community owner to the association or to the Authority. The homeowner association’s response must clearly indicate 1 of the following:
(1) The members of the association intend to accept the purchase price and any special conditions material to the transaction for the sale, transfer, or conveyance of the community, as described in the notice of right of first offer.
(2) The members of the association do not accept the price and any special conditions material to the transaction for the sale, transfer, or conveyance of the community, as described in the notice of right of first offer, but that they intend to offer to purchase the community at an alternative price.
(3) The members of the association have no interest in purchasing the community and that they do not intend to proceed any further in the transaction, or, if the members of the association do not respond, they shall be deemed to have notified the community owner that they have no interest in purchasing the community.
Terms Used In Delaware Code Title 25 Sec. 7029
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
(b) If the homeowners association does not respond in material compliance with this section, such failure to respond shall be deemed to serve as notice to the community owner that the homeowners association does not wish to purchase the community.
(c) If the homeowner association responds that it has no interest in purchasing the community, or fails to respond under § 7029, § 7030, § 7031, or § 7032 of this title, the community owner shall file an affidavit of compliance under § 7036 of this title.
(d) Failure of the homeowner association to accept the price and any special conditions material to the transaction for the sale, transfer, or conveyance of the community as stated in the notice of right of first offer; to state an alternative price under § 7030 of this title; or to respond under § 7032 of this title, eliminates the right of the homeowner association to purchase the community during the remainder of the 12-month period that commenced on the date of the community owner’s notice of intention to sell, transfer, or convey all or part of the community.
(e) A homeowner association may transfer or assign a right of first offer only to an organization formed or controlled by the homeowners to assist only in the purchase and operation of the community. Therefore, other than the preceding condition in this subsection, a right of first offer is neither transferable nor assignable.
74 Del. Laws, c. 35, § ?2; 70 Del. Laws, c. 186, § ?1; 76 Del. Laws, c. 336, § ?1; 77 Del. Laws, c. 238, §§ ?2-20; 79 Del. Laws, c. 330, § ?1; 82 Del. Laws, c. 38, § 32;