Florida Right of First Refusal: What HOA and Condo Buyers Must Know Before Closing

By Emanuel Greco, Licensed FL Real Estate Professional · Updated July 2026

A right of first refusal (ROFR) in a Florida HOA or condominium declaration gives the association — or other designated parties — the right to purchase a unit at the same price and terms as any outside offer, before the outside buyer can close. If the ROFR holder exercises this right, your purchase contract evaporates and you get your earnest money back. If they decline, your closing proceeds normally. Most Florida condo buyers don't know to check for a ROFR until their title company flags it mid-closing — causing delays that can cost them their rate lock or their deal.

How a ROFR Works in a Florida Condo Sale

1. Buyer and seller execute a purchase contract at an agreed price and terms
2. The seller or title company notifies the association (or other ROFR holder) of the contract terms within the required notice period — typically 3–30 days depending on the declaration
3. The ROFR holder has the stated period to either exercise or waive the right
4. If they exercise: the ROFR holder steps into the buyer's shoes and purchases the property at the same terms. The original buyer's contract is terminated; earnest money is returned.
5. If they waive (or the deadline passes without a response): the original buyer's contract proceeds normally to closing

Typical ROFR Timeframes in Florida

These timeframes add days to weeks to your closing timeline. If your rate lock is 30 days and the ROFR period is 30 days, you may need a rate lock extension — which costs money. Factor ROFR response periods into your closing timeline from day one.

Does a ROFR Affect Your Financing?

In some cases, yes. Fannie Mae's condo project eligibility guidelines restrict lending in communities where an association's ROFR could supersede the lender's rights — if an HOA can exercise a ROFR and buy the property before the lender can foreclose, it impairs the lender's collateral position. Specifically, Fannie Mae will not approve a loan in a project where the association has a right to purchase the unit ahead of the lender in a default scenario.

Most standard condo ROFRs that only apply on voluntary sale (not foreclosure) are generally acceptable to lenders. But ROFRs that trigger on any transfer — including lender-forced sale — can make the entire project non-warrantable. Your loan officer must submit the condo declaration to Fannie's condo review process to confirm eligibility.

ROFR in Florida Co-ops

Florida co-ops are a special case. In a co-op, you don't own real property — you own shares in a corporation that owns the building, and your "unit" is occupied under a proprietary lease. Co-op boards routinely require board approval of all buyers, and the ROFR mechanism lets the co-op buy out a member. Miami Beach has a significant concentration of co-op buildings, and their board approval + ROFR process can take 60–90 days. Conventional mortgage financing is generally unavailable for co-ops (you're not getting a mortgage on real property — you're getting a share loan, if any financing exists at all).

What to Do as a Buyer Facing a ROFR

• Read the declaration before making an offer — ask the listing agent or your agent to pull the condo declaration and look for "right of first refusal," "right of first offer," or "approval of purchaser" language
• Account for ROFR timeline in your contract — build the ROFR response period into your closing date. Don't agree to a 21-day close if the ROFR period is 30 days.
• Ask for ROFR waiver upfront — some sellers in communities with ROFR pre-obtain a written ROFR waiver from the association before listing, accelerating the process
• Notify your lender immediately — so they can submit for condo project approval accounting for the ROFR provision
• Understand the exit if ROFR is exercised — your contract should specify earnest money return in full within a set number of days if the ROFR is exercised

ROFR vs. Right of First Offer

These are often confused but are legally distinct:

• Right of First Refusal: Triggered after the seller signs a contract with a third party — the ROFR holder can match the existing offer
• Right of First Offer: Triggered before the seller markets the property — the seller must first offer it to the ROFR holder before going to market. If the holder declines, the seller can list freely.

Right of first offer is less burdensome to buyers because it's exercised (or waived) before a contract exists — it doesn't interrupt an active deal.