§ 34-18.2-3 Transfer of leased land –Right of first refusal. – (a) In any instance in which a land owner has been sent a certified letter froman incorporated home owners' association indicating that the association has atleast fifty-one percent (51%) of the home owners owning residential dwellingson the landowners land as members and has articles of incorporation specifyingall rights and powers, including the power to negotiate for and acquire land onbehalf of the member homeowners, then, before leased land may be sold for anypurpose and before it may be leased for any purpose that would result in adiscontinuance, the owner shall notify the association by certified mail of anybona fide offer that the owner intends to accept, to buy the leased land or tolease it for a use that would result in a discontinuance. The owner shall alsogive notice by certified mail to the incorporated home owners' association ofany intention to sell or lease the land for a use which will result in adiscontinuance within fourteen (14) days of any advertisement or other publicnotice by the owner or his agent that the land is for sale or the land uponwhich the residential dwelling is located is for lease.
(b) The notice to the home owners' association shall includethe price, calculated as a single lump sum amount which reflects the presentvalue of any installment payments offered and of any promissory notes offeredin lieu of cash payments or, in the case of an offer to rent the capitalizedvalue of the annual rent, and the terms and conditions of the offer. Anyincorporated home owners' association entitled to notice under this sectionshall have the right to purchase, in the case of a third party bona fide offerto purchase, or to lease in the case of a third party bona fide offer to lease,the land, provided it meets the same price and the same terms and conditions ofany offer of which it is entitled to notice under this section by executing acontract or purchase and sale or lease agreement with the owner within onehundred eighty (180) days of notice of the offer. No owner shall attempt toterminate the tenancy of any member of the incorporated home owners'association except for nonpayment of rent for a period of one hundred andeighty (180) days following a notice of sale or lease under this section. Noowner shall unreasonably refuse to enter into, or unreasonably delay theexecution of a purchase and sale or lease agreement with a home owners'association that has made a bona fide offer to meet the same price and the sameterms and conditions of an offer for which notice is required to be givenpursuant to this section. Failure of the incorporated home owners' associationto execute such a purchase and sale agreement or lease within the first onehundred eighty (180) day period shall serve to terminate the right of theassociation to purchase or lease the land. The time periods may be extended byagreement of the association and the owner. Nothing herein shall be construedto require an owner to provide financing to any association or to prohibit anowner from requiring an association which is offering to lease land to havewithin its possession a sum equivalent to the capitalized value of the proposedrent of the land and requiring that a portion of the sum, of an amountnecessary to pay the rent on the land for a period of no greater that two (2)years, be kept in escrow for such purpose during the term of the lease. In theevent that an incorporated home owners' association accepts an offer under thissection, the tenancy of the members of the association shall be extended on amonth to month basis until the time set in the offer for closing on the offer.
(c) When an owner has been properly notified under the termsof this section of the existence of an incorporated home owners' association,the owner shall include in any purchase and sale agreement or lease agreementwhich would be subject to this section, a statement informing the purchaser orlessee of the home owners association's right of first refusal pursuant to thissection.
(2) In addition, the home owners' association shall record inthe land evidence records of the city or town where the leased land is located,a copy of its articles of incorporation together with a statement setting forthits statutory right of first refusal to purchase or lease the land of the ownerpursuant to this section.
(3) The right of first refusal created herein shall not bedeemed to allow a homeowners' association to vary the terms of any offer madeto an owner and to make a counteroffer to said owner. The homeowners'association shall have the right of first refusal only on the exact terms andconditions as set forth in the offer received by the owner; provided, however,that the home owners' association shall not be required to meet any terms orconditions that would result in the removal of members of the association fromthe property which is the subject of the offer.
(4) The right of first refusal created herein shall inure toa home owners' association for the time periods provided in this section,beginning on the date of notice to the home owners' association. The effectiveperiod of the right of first refusal shall apply separately for eachsubstantially different bona fide offer to purchase the land or to lease it fora purpose that would result in a discontinuance, and for each offer the same asan offer made more than three (3) months prior to the later offer; provided,however, that in the case of the same offer made by a prospective buyer who haspreviously made an offer for which notice to a home owners' association wasrequired by this section, the right of first refusal shall apply only if thesubsequent offer is made more than six (6) months after the earlier offer. Theright of first refusal shall not apply with respect to any offer received bythe owner for which notice to a home owners' association is not requiredpursuant to this section.
(5) No right of first refusal shall apply to a governmenttaking by eminent domain or negotiated purchase, a forced sale pursuant to aforeclosure, transfer by gift, devise or operation of law, or a sale to aperson who would be included within the table of descent and distribution ifthere were to be a death intestate of a land owner.
(d) In any instance in which the incorporated home owners'association of leased land is not the successful purchaser or lessee of theland, the seller or lessor of the land shall prove compliance with this sectionby filing an affidavit of compliance in the official land evidence records ofthe city or town where the property is located within seven (7) days of thesale or lease of the land.
(e) No land owner shall attempt to increase any rental amountdue regarding leased land from the time of his or her receipt of any bona fideoffer to purchase or to lease for a purpose which would result in adiscontinuance, until the expiration of the time period during which a homeowners' association may exercise its right of first refusal or until the timeset in the offer for closing on the offer.
(f) In the event that an owner terminates the tenancies ofall of the members of the incorporated association, the right of first refusalcreated by this section shall inure to the benefit of the former membership ofthe association for a period of one year after the termination of thetenancies, or until the houses which they occupied are removed or destroyed,whichever first occurs, with the former members having the same rights andobligations as existed prior to the terminations.
§ 34-18.2-3 Transfer of leased land –Right of first refusal. – (a) In any instance in which a land owner has been sent a certified letter froman incorporated home owners' association indicating that the association has atleast fifty-one percent (51%) of the home owners owning residential dwellingson the landowners land as members and has articles of incorporation specifyingall rights and powers, including the power to negotiate for and acquire land onbehalf of the member homeowners, then, before leased land may be sold for anypurpose and before it may be leased for any purpose that would result in adiscontinuance, the owner shall notify the association by certified mail of anybona fide offer that the owner intends to accept, to buy the leased land or tolease it for a use that would result in a discontinuance. The owner shall alsogive notice by certified mail to the incorporated home owners' association ofany intention to sell or lease the land for a use which will result in adiscontinuance within fourteen (14) days of any advertisement or other publicnotice by the owner or his agent that the land is for sale or the land uponwhich the residential dwelling is located is for lease.
(b) The notice to the home owners' association shall includethe price, calculated as a single lump sum amount which reflects the presentvalue of any installment payments offered and of any promissory notes offeredin lieu of cash payments or, in the case of an offer to rent the capitalizedvalue of the annual rent, and the terms and conditions of the offer. Anyincorporated home owners' association entitled to notice under this sectionshall have the right to purchase, in the case of a third party bona fide offerto purchase, or to lease in the case of a third party bona fide offer to lease,the land, provided it meets the same price and the same terms and conditions ofany offer of which it is entitled to notice under this section by executing acontract or purchase and sale or lease agreement with the owner within onehundred eighty (180) days of notice of the offer. No owner shall attempt toterminate the tenancy of any member of the incorporated home owners'association except for nonpayment of rent for a period of one hundred andeighty (180) days following a notice of sale or lease under this section. Noowner shall unreasonably refuse to enter into, or unreasonably delay theexecution of a purchase and sale or lease agreement with a home owners'association that has made a bona fide offer to meet the same price and the sameterms and conditions of an offer for which notice is required to be givenpursuant to this section. Failure of the incorporated home owners' associationto execute such a purchase and sale agreement or lease within the first onehundred eighty (180) day period shall serve to terminate the right of theassociation to purchase or lease the land. The time periods may be extended byagreement of the association and the owner. Nothing herein shall be construedto require an owner to provide financing to any association or to prohibit anowner from requiring an association which is offering to lease land to havewithin its possession a sum equivalent to the capitalized value of the proposedrent of the land and requiring that a portion of the sum, of an amountnecessary to pay the rent on the land for a period of no greater that two (2)years, be kept in escrow for such purpose during the term of the lease. In theevent that an incorporated home owners' association accepts an offer under thissection, the tenancy of the members of the association shall be extended on amonth to month basis until the time set in the offer for closing on the offer.
(c) When an owner has been properly notified under the termsof this section of the existence of an incorporated home owners' association,the owner shall include in any purchase and sale agreement or lease agreementwhich would be subject to this section, a statement informing the purchaser orlessee of the home owners association's right of first refusal pursuant to thissection.
(2) In addition, the home owners' association shall record inthe land evidence records of the city or town where the leased land is located,a copy of its articles of incorporation together with a statement setting forthits statutory right of first refusal to purchase or lease the land of the ownerpursuant to this section.
(3) The right of first refusal created herein shall not bedeemed to allow a homeowners' association to vary the terms of any offer madeto an owner and to make a counteroffer to said owner. The homeowners'association shall have the right of first refusal only on the exact terms andconditions as set forth in the offer received by the owner; provided, however,that the home owners' association shall not be required to meet any terms orconditions that would result in the removal of members of the association fromthe property which is the subject of the offer.
(4) The right of first refusal created herein shall inure toa home owners' association for the time periods provided in this section,beginning on the date of notice to the home owners' association. The effectiveperiod of the right of first refusal shall apply separately for eachsubstantially different bona fide offer to purchase the land or to lease it fora purpose that would result in a discontinuance, and for each offer the same asan offer made more than three (3) months prior to the later offer; provided,however, that in the case of the same offer made by a prospective buyer who haspreviously made an offer for which notice to a home owners' association wasrequired by this section, the right of first refusal shall apply only if thesubsequent offer is made more than six (6) months after the earlier offer. Theright of first refusal shall not apply with respect to any offer received bythe owner for which notice to a home owners' association is not requiredpursuant to this section.
(5) No right of first refusal shall apply to a governmenttaking by eminent domain or negotiated purchase, a forced sale pursuant to aforeclosure, transfer by gift, devise or operation of law, or a sale to aperson who would be included within the table of descent and distribution ifthere were to be a death intestate of a land owner.
(d) In any instance in which the incorporated home owners'association of leased land is not the successful purchaser or lessee of theland, the seller or lessor of the land shall prove compliance with this sectionby filing an affidavit of compliance in the official land evidence records ofthe city or town where the property is located within seven (7) days of thesale or lease of the land.
(e) No land owner shall attempt to increase any rental amountdue regarding leased land from the time of his or her receipt of any bona fideoffer to purchase or to lease for a purpose which would result in adiscontinuance, until the expiration of the time period during which a homeowners' association may exercise its right of first refusal or until the timeset in the offer for closing on the offer.
(f) In the event that an owner terminates the tenancies ofall of the members of the incorporated association, the right of first refusalcreated by this section shall inure to the benefit of the former membership ofthe association for a period of one year after the termination of thetenancies, or until the houses which they occupied are removed or destroyed,whichever first occurs, with the former members having the same rights andobligations as existed prior to the terminations.
§ 34-18.2-3 Transfer of leased land –Right of first refusal. – (a) In any instance in which a land owner has been sent a certified letter froman incorporated home owners' association indicating that the association has atleast fifty-one percent (51%) of the home owners owning residential dwellingson the landowners land as members and has articles of incorporation specifyingall rights and powers, including the power to negotiate for and acquire land onbehalf of the member homeowners, then, before leased land may be sold for anypurpose and before it may be leased for any purpose that would result in adiscontinuance, the owner shall notify the association by certified mail of anybona fide offer that the owner intends to accept, to buy the leased land or tolease it for a use that would result in a discontinuance. The owner shall alsogive notice by certified mail to the incorporated home owners' association ofany intention to sell or lease the land for a use which will result in adiscontinuance within fourteen (14) days of any advertisement or other publicnotice by the owner or his agent that the land is for sale or the land uponwhich the residential dwelling is located is for lease.
(b) The notice to the home owners' association shall includethe price, calculated as a single lump sum amount which reflects the presentvalue of any installment payments offered and of any promissory notes offeredin lieu of cash payments or, in the case of an offer to rent the capitalizedvalue of the annual rent, and the terms and conditions of the offer. Anyincorporated home owners' association entitled to notice under this sectionshall have the right to purchase, in the case of a third party bona fide offerto purchase, or to lease in the case of a third party bona fide offer to lease,the land, provided it meets the same price and the same terms and conditions ofany offer of which it is entitled to notice under this section by executing acontract or purchase and sale or lease agreement with the owner within onehundred eighty (180) days of notice of the offer. No owner shall attempt toterminate the tenancy of any member of the incorporated home owners'association except for nonpayment of rent for a period of one hundred andeighty (180) days following a notice of sale or lease under this section. Noowner shall unreasonably refuse to enter into, or unreasonably delay theexecution of a purchase and sale or lease agreement with a home owners'association that has made a bona fide offer to meet the same price and the sameterms and conditions of an offer for which notice is required to be givenpursuant to this section. Failure of the incorporated home owners' associationto execute such a purchase and sale agreement or lease within the first onehundred eighty (180) day period shall serve to terminate the right of theassociation to purchase or lease the land. The time periods may be extended byagreement of the association and the owner. Nothing herein shall be construedto require an owner to provide financing to any association or to prohibit anowner from requiring an association which is offering to lease land to havewithin its possession a sum equivalent to the capitalized value of the proposedrent of the land and requiring that a portion of the sum, of an amountnecessary to pay the rent on the land for a period of no greater that two (2)years, be kept in escrow for such purpose during the term of the lease. In theevent that an incorporated home owners' association accepts an offer under thissection, the tenancy of the members of the association shall be extended on amonth to month basis until the time set in the offer for closing on the offer.
(c) When an owner has been properly notified under the termsof this section of the existence of an incorporated home owners' association,the owner shall include in any purchase and sale agreement or lease agreementwhich would be subject to this section, a statement informing the purchaser orlessee of the home owners association's right of first refusal pursuant to thissection.
(2) In addition, the home owners' association shall record inthe land evidence records of the city or town where the leased land is located,a copy of its articles of incorporation together with a statement setting forthits statutory right of first refusal to purchase or lease the land of the ownerpursuant to this section.
(3) The right of first refusal created herein shall not bedeemed to allow a homeowners' association to vary the terms of any offer madeto an owner and to make a counteroffer to said owner. The homeowners'association shall have the right of first refusal only on the exact terms andconditions as set forth in the offer received by the owner; provided, however,that the home owners' association shall not be required to meet any terms orconditions that would result in the removal of members of the association fromthe property which is the subject of the offer.
(4) The right of first refusal created herein shall inure toa home owners' association for the time periods provided in this section,beginning on the date of notice to the home owners' association. The effectiveperiod of the right of first refusal shall apply separately for eachsubstantially different bona fide offer to purchase the land or to lease it fora purpose that would result in a discontinuance, and for each offer the same asan offer made more than three (3) months prior to the later offer; provided,however, that in the case of the same offer made by a prospective buyer who haspreviously made an offer for which notice to a home owners' association wasrequired by this section, the right of first refusal shall apply only if thesubsequent offer is made more than six (6) months after the earlier offer. Theright of first refusal shall not apply with respect to any offer received bythe owner for which notice to a home owners' association is not requiredpursuant to this section.
(5) No right of first refusal shall apply to a governmenttaking by eminent domain or negotiated purchase, a forced sale pursuant to aforeclosure, transfer by gift, devise or operation of law, or a sale to aperson who would be included within the table of descent and distribution ifthere were to be a death intestate of a land owner.
(d) In any instance in which the incorporated home owners'association of leased land is not the successful purchaser or lessee of theland, the seller or lessor of the land shall prove compliance with this sectionby filing an affidavit of compliance in the official land evidence records ofthe city or town where the property is located within seven (7) days of thesale or lease of the land.
(e) No land owner shall attempt to increase any rental amountdue regarding leased land from the time of his or her receipt of any bona fideoffer to purchase or to lease for a purpose which would result in adiscontinuance, until the expiration of the time period during which a homeowners' association may exercise its right of first refusal or until the timeset in the offer for closing on the offer.
(f) In the event that an owner terminates the tenancies ofall of the members of the incorporated association, the right of first refusalcreated by this section shall inure to the benefit of the former membership ofthe association for a period of one year after the termination of thetenancies, or until the houses which they occupied are removed or destroyed,whichever first occurs, with the former members having the same rights andobligations as existed prior to the terminations.
