Re: Offer for the house

[Gwendolyn Hallsmith]

Wow! Fantastic. The way it is structured right now, sorry if it is confusing, is that the community needs to make the offer to me, not you. After April 6th, when their option expires, then I could accept an offer directly from you. So I'm copying them on this message. Until April 6th they can buy it from me for the appraised value, which is $242,000. I'll attach the appraisal again.

Since you've been approved for financing, that's one big hurdle out of the way. Congratulations! You may want to have the house inspected? Banks sometimes require this. One thing you could do is to find a qualified inspector and get on their schedule. Things like that can take more time than they should in the current real estate market. You would need to pay for that, usually it's around $600. Please let me know if you decide to do it and when you have a date for that. We would want to be there. We have had the water tested regularly, so I don't think you'd need to go to the expense of doing that, it adds to the inspection costs. I can find some of the test results from the past. Christyn has some, too, I think. The water is wonderful, the sweetest water I've ever tasted.

I'll attach the purchase and sale agreement we have used in the past, I've filled in a few things, but feel free to change it to meet your needs. Perhaps it would be an idea for the community to have their lawyer talk to your lawyer (you need one) about drafting a purchase and sale agreement together, since they would be depending on you to actually buy the house. 

I'll also attach the Resale Certificate (I think I sent a draft of it to you before), the Declaration, and the Revised Declaration, which are part of the disclosures. I'm pretty sure I sent you the bylaws and CC&R before - let me know if I didn't, or if you'd like to see them again. I can't emphasize enough how important it is to read everything, and to have your lawyer explain anything you don't understand completely. 

Yay - you must be pretty excited to be moving there. Right next door to work, it doesn't get better than that.

Cheers, Gwen

On Mon, Mar 7, 2022 at 11:15 AM Daiki Hirano <hiran...@gmail.com> wrote:

Hi Gwen, 

I have figured out financing for the house and would like to officially put an offer on the house. 

Headwaters community has informed we that my wife and I have been accepted as members. 

Can we start a purchase and sales agreement? 

Thank you

--

Daiki Hirano
Drums and Percussion
hiran...@gmail.com
914-261-6798

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__________________________________

Gwendolyn Hallsmith

gwe...@gmail.com

802-851-7697

[Gwendolyn Hallsmith]

Hi again Daiki,

As promised, I looked at the bylaws, and the full section says this:

The Association shall have ninety (90) days from the date of receipt of the first, or if applicable, the second appraisal referenced in Section 12a-3 below, to purchase the property at the option price determined below, or to assign its right to purchase to a third party purchaser designated by the Association, with a closing to said third party to occur within said ninety (90) day period.

The Association's repurchase price will be determined with reference to a licensed appraiser who shall determine the full fair market value of the unit.  (For the purposes of this Article XII (A) the "Unit" shall include the physical unit together with the Unit Owner's allocated interest in all of the common interests and lands of the Community.)  

So you're right, providing I get a written note from whoever is designated to represent the Homeowners Association that they assign that right to you, then you could go ahead and offer me the appraised value plus the cost of the common facilities. As you know, that cost has not been determined yet because of the conflict over electric service. 

Please note that the closing needs to happen before April 6th, not just an offer. So it would be good to get on it, or the possibility for that date will pass. 

I've copied them on all this. 

Cheers, Gwen

On Tue, Mar 8, 2022 at 2:42 PM Daiki Hirano <hiran...@gmail.com> wrote:

It is a little confusing because what you are saying is not congruent with the charters and bylaws. 

In the “Charters and Bylaws” section VIII(8) 

Paragraph 3 states 

“Thereafter…,or to assign its right to purchase to a third party purchaser designated by the Association, with a closing to said third party to occur within ninety(90) day period.”

How I understand it, I am the third party that has been designated by the Association. 

I see this to be very clear and would therefore be no need to draft a new purchase agreement with both association and I as the buyer. 

Is there something I have missed. Possibly another section rendering this section void due to some triggering event? 

If so, can you highlight that section? 

Can I get clarification on these two statements from the last email? 

    “The higher figure ($5,125) for the full share includes a $15,000 set-aside I am requiring to make sure you have the money to connect to the grid through site #3 for backup power…”

   “A lot of details and choices. My current position gives you the choice of options and the money to do it”

How is this money set aside for me? Am I to exercise your current position which allows me to access to these funds to aid in funding this electric infrastructure?? 

Thank you for your patience

On Tue, Mar 8, 2022 at 11:14 Gwendolyn Hallsmith <gwe...@gmail.com> wrote:

Hi Daiki - 

I'm sorry it's confusing. What I suggested to the community yesterday is that they get their lawyer to draw up a purchase and sale agreement that has both you and the Homeowners Association as the buyer, and me as the seller. That way, they are exercising their option and simultaneously transferring it to you. I don't know if they (or their lawyer) likes this idea. They haven't responded to that suggestion yet.

The community has the purchase option to buy my house through April 6th. That means that they would actually buy my house and then sell it to you, but since without you as a buyer they don't have the money to do it, I thought doing it as one transaction with both of you named might work. 

None of us has ever worked through this before, so we're all a bit in the dark. I never imagined I'd be the first one through this particular gate. So bear with us, I'm sure it will work out. They have complained that their lawyer is not very responsive, so it might take a little time for them to get an answer about how they want to proceed.

Buying my house is different, too, than buying Headwaters. One thing I didn't mention yesterday is that depending on how they go about buying my shares, you are probably going to buy your share of Headwaters as you buy the house. While they have the option, this means that the cost of the house for you would be the appraised value, which is $242,000, plus your full share of the common land and facilities, which will depend on our negotiations, but it is somewhere between $3,130 and $5,125 (in addition to the cost of the house). 

One of the sticking points in our negotiations is the electric problem I mentioned before. The higher figure ($5,125) for the full share includes a $15,000 set-aside I am requiring to make sure you have the money to connect to the grid through site #3 for backup power, since Oliver doesn't want the backup power to go through his house anymore. It's an expensive problem and since it is infrastructure that will stay in the ground there (and since I had already paid to do it another way), it will be a cost for Headwaters, since Headwaters has put in all the infrastructure, and that makes the price for the shares higher. 

There are other options besides hooking up to site #3, as I mentioned before. You could just use a generator for the long low sun periods. You could get a couple new panels and need the generator less. The new batteries mean that we've only needed the backup power every three days overnight in the summer, somewhat more often in the winter, but it's not much. Oliver could upgrade the cable to his house so the electricity isn't a problem. But the hookup to site #3 is the way to keep the system the way it is now, with the grid as a backup. Oliver could also change his mind and muddle through somehow, but I guess he wants an electric truck and more power to his shop and he didn't install a cable big enough for two 100 amp services when he built it. 

The set aside would translate into the actual costs of the hook up if this drags on into construction season and I get the work done. So it might be lower than $15,000, but my experience with installing the electrical system tells me that's a safe number. It involves pulling a cable that is enough for 200 amp service to site 3. (I think it's called a 4.0 cable if you look it up). They come in aluminum and copper, the aluminum one is a lot less expensive and since they stay buried in the ground, it would be what I pick. When I looked into it last year, that cable alone would cost about $1,500, so maybe $3,000 installed. Then we would run another 30 amp cable to the house through a new conduit (the conduit is already in to site 3). 30 amps is the power at the house now. With the new setup, it might be able to expand to 100 amps, but that would cost more money for a new breaker box and a bigger cable.

A lot of details and choices. My current position gives you the choice of options and the money to do it. If you have other ideas, let me know. Just know that I'm not willing to just take the costs out of the price of the house and have it be 100% my problem. From my point of view, this is a problem Oliver created. Under our bylaws, if he disconnects infrastructure someone else was relying on, he's responsible for paying me back the money I spent putting it in and damages, which include replacement costs. I know that might sound harsh, but we have a lot of cases around Headwaters where we share things - wells, electric, etc. There needs to be some insurance that money spent won't be wasted, and that one person's choice might leave someone else without water, or in my case, without backup power. 

This might be more information than you wanted. It is a conflict. It's unfortunate, but unresolved conflict can be a toxic thing, which is why there are provisions in the bylaws for resolving it quickly and easily. I tried, but I was unsuccessful. Anyway, as I said, bear with us. I imagine one of us will hear from them soon about it.

Cheers, Gwen

On Tue, Mar 8, 2022 at 8:22 AM Daiki Hirano <hiran...@gmail.com> wrote:

I just sent you a forwarded message from a previous email explaining how I could exercise the first right of refusal option with their approval. 

Do I understand your previous email? 

I thought I could move forward as if I was a member and as if I was headwaters making you an offer. That’s how the language of your email outlined the process to my understanding. 

Please clarify for me

Thank you.