Expert: Sue Bernstein - 7/27/2007

Question
I co-own a piece of property in CA as a member of an LLC.  The LLC gives first right of refusal - specifies no process or time. It is now on the market. When a good offer comes in and we are given 72 hours to respond to the buyers, must the other members of the LLC exercise their first right in that window of time?? If not, and we sign a contract with the buyer - how can they then exercise that right?  Is there CA regulation or law that determines this? Thanks

Answer
Dear Judy,

The problem is that you have no time period built into the first right of refusal.  You can accept an offer but you would have to build into it that the LLC has first right and they could probably exercise it anytime until it closes.  It might be a good idea to fix this loophole now.  I am not aware of any law that sets a timeline but you might want to check with an attorney on this site.