Vistana ROFR?

[PPAES]

Hello all,

Recently, I came across a post on Facebook from someone who had a family member lost two resales at Westin Lagunamar. According to her, the family member was notified that Marriott had exercised ROFR. The asking price was very low $1500 (annual 2 bedroom) and $800 (odd year 2 bedroom). So, ROFR may depend upon the selling price. Have you guys heard about this Marriott policy? and my second question is: If you have an old contract with the developer and it does not mention at all about ROFR, how Marriott now can apply the ROFR?

Thanks!

 

[DanCali]

ROFR exists at the vast majority of Marriott resorts (Westin Kierland and Harborside are two notable exceptions). It's a nice business model to buy something for $1500 and resell it for $30,000. They will exercise ROFR based on their expected return (lower price more likely to get exercised) but also based on economic conditions and how much inventory they already hold. They do owe maintenance fees for inventory they hold, but can also rent it - although that's not the primary thing they want to do.

As a seller, you don't really care if they exercise ROFR because you get the same price you agreed to.

As a buyer, you will need to offer a higher price to bypass that process, or keep trying with the same price and hope it falls through the cracks (they only have X number of days to exercise), or wait for certain economic conditions when Marriott might be less aggressive with ROFR. For example, in late 2020 and early 2021, they were not really doing much of it.

 

[dioxide45]

I was not aware that Westin Lagunamar has ROFR, Westin Aventuras does though. ROFR is written into the underlying documents of the resort. They can't retroactively add it on just new contracts without getting the underlying resort documents amended.

 

[CPNY]

Is there a database with all of the governing documents for each resort? I can only pull up documents for the resorts I own. I didn’t think WLR has ROFR. If they don’t it seems that Marriott is doing whatever they want. If they are adding ROFR onto contracts they that are not supposed to have ROFR, then what’s stopping them from manipulating the inventory? Shady Shade Mr Marriott

 

[echino]

There is no ROFR at Westin Lagunamar.

 

[dioxide45]

This is a list given to me by a broker a couple years ago;

 

[PPAES]

ROFR exists at the vast majority of Marriott resorts (Westin Kierland and Harborside are two notable exceptions). It's a nice business model to buy something for $1500 and resell it for $30,000. They will exercise ROFR based on their expected return (lower price more likely to get exercised) but also based on economic conditions and how much inventory they already hold. They do owe maintenance fees for inventory they hold, but can also rent it - although that's not the primary thing they want to do.

As a seller, you don't really care if they exercise ROFR because you get the same price you agreed to.

As a buyer, you will need to offer a higher price to bypass that process, or keep trying with the same price and hope it falls through the cracks (they only have X number of days to exercise), or wait for certain economic conditions when Marriott might be less aggressive with ROFR. For example, in late 2020 and early 2021, they were not really doing much of it.

As a buyer, what if you are firm with price paid and you don’t offer a higher price? How do you get the money back negotiated with the seller?

 

[PPAES]

I was not aware that Westin Lagunamar has ROFR, Westin Aventuras does though. ROFR is written into the underlying documents of the resort. They can't retroactively add it on just new contracts without getting the underlying resort documents amended.

Exactly

 

[kozykritter]

As a buyer, what if you are firm with price paid and you don’t offer a higher price? How do you get the money back negotiated with the seller?

My understanding is that Vistana buys you out of the transaction directly so it doesn't involve the seller. Is that not what happens?

 

[dioxide45]

As a buyer, what if you are firm with price paid and you don’t offer a higher price? How do you get the money back negotiated with the seller?

You should be using a closing company that is holding your money in escrow and it should all be refunded. You might be out a small deposit amount you might have had to pay to the closing company.

 

[PPAES]

You should be using a closing company that is holding your money in escrow and it should all be refunded. You might be out a small deposit amount you might have had to pay to the closing company.

I’m glad I did.

 

[PPAES]

My understanding is that Vistana buys you out of the transaction directly so it doesn't involve the seller. Is that not happens?

The transaction was pretty recent and I don’t know at this point. I guess I just need to wait and see what happens.

 

[Eric B]

I got one of my WLR weeks from timeshare nation, so the purchase price was $0. It went through, though it took quite a while.

 

[dioxide45]

I got one of my WLR weeks from timeshare nation, so the purchase price was $0. It went through, though it took quite a while.

What size units did you get through TN? Were they Gold+? Wondering if any good weeks ever show up there. I know every once in a while some Mandatory SVV show up.

 

[Eric B]

What size units did you get through TN? Were they Gold+? Wondering if any good weeks ever show up there. I know every once in a while some Mandatory SVV show up.

It was a Gold+ EOYE studio. Not the best, but decent. I also got a 2 BR SVV KW Prime EOYO from them (81K/2,725 Club Points as it was pre-August 2022).

I've seen a few others that were tempting and had asked for a 2 BR SVV Bella Prime annual once, but it wound up being sold elsewhere. TSN let me know when the other one showed up before posting it for good will.

I also saw a decent size Wyndham Bali Hai ownership go through there a couple of months ago and got a small WorldMark contract.

They're worth keeping an eye on if you know what you want and how to use it.

 

[PPAES]

I got one of my WLR weeks from timeshare nation, so the purchase price was $0. It went through, though it took quite a while.

How long was the waiting time?

 

[Eric B]

Almost 6 months

 

[PPAES]

Almost 6 months

Thank you.

 

[Eric B]

Thank you.

YQW. Most of the time was waiting for Vistana or their agent (First American Title, I believe) to accomplish the transfer once they had the documents.

 

[PPAES]

YQW. Most of the time was waiting for Vistana or their agent (First American Title, I believe) to accomplish the transfer once they had the documents.

Pretty much is the same thing told by the company Sterling Title Partners in FL, a company that works with Redweek.

 

[PPAES]

Heads up: Here is the response from Kris Koski from Sterling Title Partners, Inc when asked about ROFR at WRL:

“Not yet though we hear they will.”

 

[Eric B]

Heads up: Here is the response from Kris Koski from Sterling Title Partners, Inc when asked about ROFR at WRL:

“Not yet though we hear they will.”

Do you mean Lagunamar (WLR)? In any case it seems unlikely to be true for weeks already owned; they could add that sort of condition to unsold weeks, though.

 

[PPAES]

Do you mean Lagunamar (WLR)? In any case it seems unlikely to be true for weeks already owned; they could add that sort of condition to unsold weeks, though.

Yes, Lagunamar.

 

[VacationForever]

Since there is no ROFR at WLR, it should not even have been submitted through the ROFR process. Just go through the regular transfer process should speed things up and be sufficient.

 

[dioxide45]

Heads up: Here is the response from Kris Koski from Sterling Title Partners, Inc when asked about ROFR at WRL:

“Not yet though we hear they will.”

What was the question you asked them?