For Bray Mitchell and her husband, third-generation homeown-ers on Rope Ferry Road, selling their home will be a simple affair. But then Bray and her husband own their home "free and clear," without having to worry about the "right of first refusal" provision that has caused tension between the College and some area homeowners.
Homeowners who do have the provision in their property deeds will find it more difficult to put their home up for sale. The provision allows no transfer of ownership until the College cedes its purchasing rights, a process which can take up to 30 days, according to College Real Estate Director Paul Olsen.
Although homeowners cannot sell to any outside buyer if Dartmouth expresses interest in their property, they are under no obligation to sell if they find the terms unfavorable, Olsen said.
Olsen estimated that between 200 to 300 houses in Hanover currently have first refusal rights written into their title deeds. However, he pointed out that the College has given up its repurchase rights to over 200 houses in Hanover in the last 10 years.
Dartmouth's motive in maintaining first refusal rights over so many properties in Hanover is to keep a pool of homes available for faculty and graduate students.
"The College has a long-standing tradition of helping its employees," Associate Real Estate Director Lawrence Kelly said, citing 400 rental units in Hanover and Lebanon owned by the College.
Olsen stressed the positive effect of the clause. "We don't want to bid up the value of houses. We only get the right to pay market base price for the house. Homeowners are thrilled to sell to the College and not go through the marketing process," Olsen said.
According to some residents of the Occom Pond neighborhood, however, the clause poses "a threat" to local homeowners.
"You can't even get your house listed if the College has the right of first refusal in your deed," Mitchell said, referring to realtors' reluctance to take on clients where there is a risk of not receiving a brokerage commission. The College is under no obligation to pay the broker, because Dartmouth's right to repurchase the property is implicit in the deed.
"From the broker's point of view, if the College has the right of first refusal, then the broker has done all the hard work for nothing," said Judith Darrough, associate realtor at Martha Diebold Realty in Hanover.
Olsen maintained that, aside from a single exceptional circumstance, the College always compensates the realtor as a gesture of good will.
"Technically when we exercise the right, we have to exclude the broker from commission. But there has never been a case where we have voluntarily excluded a broker from receiving a commission."
Nevertheless, some residents see the College's policies as monopolistic. "The College is trying to control the housing market and drive down prices," Mitchell said.
"If they want to turn [Hanover] into a suburb like Princeton, then Dartmouth loses its uniqueness," another disgruntled Rope Ferry Rd. resident said. "The College doesn't realize the value of the community as a community."
Some area residents view the College as a "threat" to the neighborhood, which they wished would be able to encompass both the residential and collegiate atmosphere.
"It's the institution versus the individual, and you're on the losing end of the stick," Mitchell said. "They're here for the long haul."
Realtor Mary Magnell addressed both sides of the issue. "For the College, I can say it was very smart of them to put this in their deeds. They have very limited zoning areas to work with to expand to their growth potential," she said. "For others who work to find the perfect home or place to do their business in close proximity to the College, only to have it grabbed up from under them, it's not a great situation."
