Everything you need to know when selling a property with Historic Salisbury Foundations covenants!
Whether you are a Revolving Fund homeowner, realtor or real estate attorney, we are here to help you through the process of selling a Revolving Fund property. We do everything we can to make sure potential buyers are informed of our covenants, but your assistance would be greatly appreciated as you move forward with selling a protected property.
Pictured: Before and after photos of the Bernhardt House
First Step: Notify Historic Salisbury Foundation of intent to sell!
It is the homeowners responsibility to reach out to HSF if they plan to sell their property, but we’re also happy to hear from a realtor! Any time a Revolving Fund property is going to be sold, HSF needs to know. This helps the transition with new Revolving Fund property owners and legal matters surrounding the covenants. An important part of the covenants is HSF’s right of first refusal. You can notify HSF of the plan to sell a property by emailing office@historicsalisbury.org or calling 704-636-0103.
Listing the Property
When listing a Revolving Fund property, it is important for buyers to know about the covenants and deed restrictions. We love to see note of that in the property description: "The property is subject to Historic Salisbury Foundation's preservation covenants."
A staff member from HSF is more than happy to meet with potential buyers to answer any questions they may have.
Right of First Refusal
Historic Salisbury Foundation's covenants include a right of first refusal. Any offer a homeowner accepts is contingent on HSF waiving our right of first refusal. If we do wish to purchase the property, we would need to match the terms of the accepted offer. Generally speaking, this is not common practice for us. If you reach out to let us know that you are accepting an offer and need us to sign a waiver of right of first refusal, we will get it back to you as soon as possible. In some cases, we may ask for a meeting with the buyer first to ensure they have received and understand the covenants. You can find a sample waiver of the right of first refusal here. It is important to note that waivers of right of first refusal should be specific to the buyer and cannot be used if that buyer falls through. A new waiver would need to be signed.
Filing the Deed & Covenants
It is best practice that the covenants are filed with the most recent deed so future buyers are aware without having to dig for the information. Covenants are important and we want to make them as accessible as possible. We ask that your attorney files the covenants with the deed itself, rather than as an attachment.
Paying the Covenant Fee
Not every house in the Revolving Fund has a covenant fee, but many do. Check with HSF to see if the property you are closing on does. If so, that fee will the responsibility of the sellers at closing. The fee is generally as follows: 1% of the sales price up to $100,000, to be paid to the Foundation by seller. For properties sold for $100,000 or more, the fee is 1% of $100,000, plus one half of 1% of any amount of the sales price over $100,000, to be paid to the Foundation by the seller.
That's it! You've sold a Revolving Fund property!
If you have any questions about this process, we are happy to help along the way. You can call our office at 704-636-0103 or email office@historicsalisbury.org.