ROFR obligation

[Norcal5]

If your contract does not pass ROFR, are you obligated to sell it to Marriott or can you then decide to keep it?

 

[billymach4]

If your contract does not pass ROFR, are you obligated to sell it to Marriott or can you then decide to keep it?

No Marriott will immediately take it off your hands. You don't get a choice once the paperwork goes to the ROFR desk.

 

[DanCali]

I am pretty sure you can actually decide to keep it. The closing company can just let them know that you changed your mind.

They still need to send you the paperwork and you have to sign the deed. As the seller, you can always not sign and there is usually no penalty for walking away other than paying the broker commission, if applicable.

 

[billymach4]

I am pretty sure you can actually decide to keep it. The closing company can just let them know that you changed your mind.

Not to give you a hard time... But how can you prove this statement?

Then this just defeats the purpose of ROFR. If I list and sell it for $2 and Marriott takes it on ROFR. Then I say sorry I changed my mind I want to take it back.
What is to stop me from turning around and relisting it for $2,000 in 2 months.

Then the closing company is out their fee.
Also if there is broker involved they want their fee as well.

 

[DanCali]

Not to give you a hard time... But how can you prove this statement?

Then this just defeats the purpose of ROFR. If I list and sell it for $2 and Marriott takes it on ROFR. Then I say sorry I changed my mind I want to take it back.
What is to stop me from turning around and relisting it for $2,000 in 2 months.

Then the closing company is out their fee.
Also if there is broker involved they want their fee as well.

Yes, the broker will want their fee, and maybe the closing company will too (although at that point they haven't done much other than email to ROFR, so maybe not). That's doesn't mean you can't back away from the transaction - you just need to pay any fees you contractually owe. A broker fee upon seller cancelation is definitely listed in a contract.

But nobody can force you to sign a deed....

Here is what a notice of exercise looks like. They can't file a deed that is not signed...

 

[billymach4]

I am pretty sure you can actually decide to keep it. The closing company can just let them know that you changed your mind.

They still need to send you the paperwork and you have to sign the deed. As the seller, you can always not sign and there is usually no penalty for walking away other than paying the broker commission, if applicable.

Ahh.. I see you added an update.

 

[billymach4]

If your contract does not pass ROFR, are you obligated to sell it to Marriott or can you then decide to keep it?

Last year I sold a Silver Season week at Ocean Pointe. I actually priced it so an acquaintance would buy it. I had of course checked ROFR.NET and much to my surprise Marriott scooped it up.

Did not cross my mind to back out an renegotiate. I really wanted this to go to the buyer of my choice.
Let us know how your situation plays out if you don't sign the transfer paperwork.
Interesting how @DanCali framed the strategy.

 

[dioxide45]

Not to give you a hard time... But how can you prove this statement?

Then this just defeats the purpose of ROFR. If I list and sell it for $2 and Marriott takes it on ROFR. Then I say sorry I changed my mind I want to take it back.
What is to stop me from turning around and relisting it for $2,000 in 2 months.

Then the closing company is out their fee.
Also if there is broker involved they want their fee as well.

They can't really force you to sign the deed unless they wanted to take legal action to enforce the contract. Which is unlikely.

 

[billymach4]

Yes, the broker will want their fee, and maybe the closing company will too (although at that point they haven't done much other than email to ROFR, so maybe not). That's doesn't mean you can't back away from the transaction - you just need to pay any fees you contractually owe. A broker fee upon seller cancelation is definitely listed in a contract.

But nobody can force you to sign a deed....

Here is what a notice of exercise looks like. They can't file a deed that is not signed...

View attachment 111337

Also I would not want to piss of the closing company either.

 

[dioxide45]

Also I would not want to piss of the closing company either.

I know that LT collects an upfront non refundable deposit before they will start the process. If ROFR is exercised, that is lost. This is why it may be better to just submit ROFR as the owner, and apparently that also waives the $95 ROFR fee to the buyer.

 

[billymach4]

I know that LT collects an upfront non refundable deposit before they will start the process. If ROFR is exercised, that is lost. This is why it may be better to just submit ROFR as the owner, and apparently that also waives the $95 ROFR fee to the buyer.

Learning.... Thanks

 

[billymach4]

OK is anyone brave enough to admit using the don't sign deed tactic? Has this been discussed in a prior thread? You can pm me if you want? My lips are sealed .

 

[Norcal5]

I now remember buying a Newport Coast week many years ago, and the closing company called me to say there would be a month or two delay on the sale, because the seller had previously gotten rofr'ed on the week and refused to let Marriott have it. But I eventually got it.

 

[davidvel]

They can't really force you to sign the deed unless they wanted to take legal action to enforce the contract. Which is unlikely.

This is the correct answer. Very low likelihood they will spend the money to enforce the ROFR, but legally it is a deeded right that they have and could pursue. It is not the seller's option. A judge can order a seller to sign a deed, or order that the clerk signs as an elisor.

 

[dioxide45]

I wonder what would happen if one failed to follow through on signing over the deed only to later submit a higher contract. Could Marriott still only be obligated to the original one?

 

[davidvel]

I wonder what would happen if one failed to follow through on signing over the deed only to later submit a higher contract. Could Marriott still only be obligated to the original one?

Here is the language from MRD:

My interpretation would be that if the owner failed to sign it over it would be a breach of contract. MVC could if it chose to do so, demand that the Owner fulfill its obligations as set forth above, and sue if they refused, whether there is a subsequent ROFR submittal or not.

But, if the statute of limitations ran (4 years generally), MVC would be out of luck.

 

[Dean]

Here is the language from MRD:
View attachment 111393
My interpretation would be that if the owner failed to sign it over it would be a breach of contract. MVC could if it chose to do so, demand that the Owner fulfill its obligations as set forth above, and sue if they refused, whether there is a subsequent ROFR submittal or not.

But, if the statute of limitations ran (4 years generally), MVC would be out of luck.

They could but I can't see it being worthwhile them following through on this option as long as the fees are being paid. Too much hassle and cost for such little overall return. What they could do would be to lock down the account.

 

[Mlvnsmly]

I've done this. I tried to give away a white season at DSV2 and MVC exercised ROFR. They wanted me to pay closing costs which was inline with what I was going to do to give away the ownership, but at a much higher rate than what I was going to pay LT. (I don't believe the closing costs were listed in the contract other than it saying I was paying). They told me that I could decide not to "sell" it to them if I didn't like the terms. so thats exactly what I did. I resubmitted with the buyer paying closing costs. The exercised again and I paid nothing. Pretty stupid really, but that's how they handled it. At the time, I think it was only a $50 deposit that LT collected.

Her is exactly what they said to me at the time:

"If you would like to cancel the transfer please let me know and I will take care of that for you."

 

[billymach4]

Here is the language from MGV.

 

[billymach4]

Here is the language from MRD:
View attachment 111393
My interpretation would be that if the owner failed to sign it over it would be a breach of contract. MVC could if it chose to do so, demand that the Owner fulfill its obligations as set forth above, and sue if they refused, whether there is a subsequent ROFR submittal or not.

But, if the statute of limitations ran (4 years generally), MVC would be out of luck.

What resort is MRD?

 

[billymach4]

What resort is MRD?

This is an example where the internal TUG search did not yield my answer. So I did to old Google and found this thread.
MRD CA Palm Desert Shadow Ridge

Marriott Abbreviation codes

Here is another list to the Marriott codes. This list is in alpha by code...let me know if you see anything that needs a correction... HPS SC Harbor Point MAO Aruba Ocean Club MAW HI Waiohai Beach Club MBP FL Beachplace Towers MBY SC Hilton Head...

tugbbs.com

 

[billymach4]

Another question? I am finding these docs in my vacation club account.
However I find of course for the resorts I own.

How would I find the Bylaws and governing docs for resorts I don't own? Such as MRD?

 

[dioxide45]

Another question? I am finding these docs in my vacation club account.
However I find of course for the resorts I own.

How would I find the Bylaws and governing docs for resorts I don't own? Such as MRD?

You probably need to search count recordings. I have all the ones for grande vista

 

[iftravel]

Can someone add a clause in the contract that the seller can back out (and pay a fixed amount of broker fee) anytime before the deed is signed to remove any legal ambiguity?

 

[jellen613]

Last year I sold a Silver Season week at Ocean Pointe. I actually priced it so an acquaintance would buy it. I had of course checked ROFR.NET and much to my surprise Marriott scooped it up.

Did not cross my mind to back out an renegotiate. I really wanted this to go to the buyer of my choice.
Let us know how your situation plays out if you don't sign the transfer paperwork.
Interesting how @DanCali framed the strategy.

My question is, if you had an aquaintance interested in buying, then through a transfer company are you not allowed to sell to that aquaintance directly? Does every single sale have to go through ROFR?