Most condominium purchases in Philadelphia work the way buyers expect: negotiate a price, satisfy inspection and financing contingencies, close, and move in. But a smaller number of the city’s boutique and historic-conversion buildings, particularly some of the more established addresses in and around Rittenhouse Square, Society Hill, and the Avenue of the Arts, include governance provisions that add another layer to the process — a right of first refusal, a board approval requirement, or both. Buyers who have purchased condos elsewhere are sometimes surprised to encounter these provisions in Philadelphia, so it is worth understanding what they mean and how they can affect a purchase timeline before you fall in love with a specific unit.
What Is a Right of First Refusal?
A right of first refusal, sometimes shortened to ROFR, gives the condominium association, or in some cases the other unit owners collectively, the ability to purchase a unit under the same terms a seller has already negotiated with an outside buyer before that sale can proceed. In practice, this usually means that once a seller accepts an offer, the signed agreement is submitted to the board or association, which then has a defined window of time to decide whether to exercise its right to buy the unit itself on the same terms, or to waive that right and allow the sale to the original buyer to move forward.
In the vast majority of cases, the association waives its right and the sale proceeds as negotiated. The provision exists less as a routine obstacle and more as a mechanism some older or smaller buildings use to retain some control over ownership composition, particularly in structures that were converted from apartments, hotels, or other historic uses and carry governing documents drafted decades ago.
Board Approval Processes in Certain Buildings
Separately from, or sometimes alongside, a right of first refusal, a smaller number of Philadelphia’s boutique and historic condo buildings maintain a board approval process for incoming owners. This is far less common in Philadelphia than in New York’s cooperative buildings, but it does exist in some addresses, and it typically involves submitting a purchase application, financial documentation, and sometimes personal or professional references, followed by an interview with a board committee. The stated purpose is usually financial: boards want assurance that an incoming owner can meet monthly assessment obligations and any special assessments the building may face.
Because these processes are building-specific rather than standardized across the city, the details, timeline, and level of scrutiny vary considerably. Some buildings run a light-touch process that amounts to a brief document review, while others expect a more thorough application and formal interview.
How This Differs from Standard HOA Rules
- Standard condo association rules govern fees, maintenance, and use of common areas, but do not restrict who can buy a unit
- A right of first refusal specifically gives the association or other owners the option to purchase before an outside sale closes
- Board approval adds a vetting step — application, documentation, sometimes an interview — before a sale can close
- Most Philadelphia condos have neither provision; where they exist, they are concentrated in a handful of older, boutique, or converted buildings
What Buyers and Sellers Should Confirm Early
For a seller, the practical step is straightforward: know before listing whether the building’s governing documents include a right of first refusal or approval requirement, and disclose that clearly so buyers and their agents can plan around it. For a buyer, the right move is to request the condominium’s governing documents, including the declaration, bylaws, and any resale certificate, as early in the process as possible, ideally before submitting an offer on a unit in an older or boutique building. Ask the listing agent directly whether either provision applies, and if so, what the association’s typical timeline and process have been for recent sales.
These documents will also spell out the exact procedural details: how long the association has to exercise or waive a right of first refusal, what documentation a board approval application requires, and whether there is any fee associated with the review.
Building This Into Your Purchase Timeline
A right of first refusal or board approval process typically adds days to weeks to a closing timeline, not months, but that additional time needs to be built into contract deadlines, mortgage rate locks, and any moving or lease-end plans on the buyer’s side. If you are also competing for a unit using an escalation clause or a tight closing date to strengthen your offer, it is worth discussing with your agent how an approval contingency interacts with those strategies, since a seller weighing offers may view one with a lengthy building approval process differently than a comparable offer without one.
Frequently asked questions
Do most Philadelphia condo buildings have a right of first refusal?
No. The great majority of Philadelphia condominiums have no such provision, and buyers can proceed through a standard purchase and closing process. It appears mainly in a limited number of older, boutique, or historically converted buildings, so it is worth confirming for any specific address rather than assuming it applies broadly.
How long does board approval typically take?
Timelines vary by building since there is no citywide standard, but where a formal review exists it commonly adds a few weeks to the process for document review and any required interview, which is why confirming the requirement and its typical timeline early is valuable.
Can a right of first refusal delay or kill a deal?
It can add time to a closing while the association decides whether to exercise or waive its right, but outright exercise of the right, where the association actually elects to purchase the unit itself, is uncommon. Buyers and sellers should still account for the review period in their contract timeline.
If you are considering a purchase in one of Philadelphia’s boutique or historic condo buildings and want a clear read on a specific building’s governing documents before you make an offer, James Kennedy can help you review the details and plan your timeline accordingly. Reach James at 215-267-8479 or jameskennedy@unlockedteam.com.
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