How long for Starwood to process its Right of First Refusal?

[cuppajoe]

Hi, fellow TUGgers.

I'm in the process of purchasing a resale WKORV unit, and we're at the stage where the seller has sent the intent to purchase details to Starwood, around 3 weeks ago. All attempts at querying the status of the ROFR, though, have been unsuccessful... nothing but silence back from Starwood, from email or voice mail.

How long is Starwood legally allowed to sit on this? I imagine it's in their best interest to let it drag on, but the seller and I are itching to move to the next stage.

Any advice as to how to proceed? Any magic contacts anyone has within Starwood?

Cheers!
cj

 

[yumdrey]

When I bought WMH, it took almost 3 weeks to get the letter from starwood.
You should wait until you get waive letter from starwood, you cannot proceed next step yet, just in case.

 

[Twinkstarr]

I didn't have to go through a ROFR process when I bought my Lakeside Terrace week, just closed, recorded deed and sent off to *wood.

Is this something with just WMH?

 

[DeniseM]

Here's a list of the resorts with ROFR - Lakeside doesn't have it.

 

[gregb]

According to the Vacation Ownership Plan documents, Starwood is required to respond to a ROFR within 10 days of their receipt of the notice of planned sale. So if you have not heard from them in 3 weeks, and you have some sort of proof that you sent the required information, you should be OK to close the deal.

Greg

 

[cuppajoe]

According to the Vacation Ownership Plan documents, Starwood is required to respond to a ROFR within 10 days of their receipt of the notice of planned sale. So if you have not heard from them in 3 weeks, and you have some sort of proof that you sent the required information, you should be OK to close the deal.

Greg

Excellent, thanks for the info! Hmm... as for proof, I suppose the best thing would be a fax (or email?) from Starwood indicating that they'd received the information. Scary to contemplate fighting with them about this later...

Cheers,
cj

 

[gregb]

Ways to establish when you sent them the document.

Send it via a carrier that requires a signature and can track a package, like FedEX or UPS.
Send it Registered Mail with Return Receipt.
Send it from a FAX machine that prints the date/time and phone number sent to on the document.

You do have to send them a complete copy of "Offer to Buy" including all terms and conditions.

"If the Developer decides to buy the Vacation Ownership Interest, then the Developer will send the Owner written notice of that decision within ten (10) business days after the Developer receives the Owner' notice of the Offer to Buy. ... If the Developer does not send notice of its decision to buy the Vacation Ownership Interest within the ten (10) business day period, then the Owner may sell the Vacation Ownership Interest to the person who submitted the Offer to Buy." This is from the Vacation Ownership Plan document for WKORVN, section 9.8, Right of First Refusal.

So if you send them a copy of the offer to buy, wait 10 business days after they receive it and don't hear back from them, you are good to go for the sale.

Greg

 

[dyi27308]

I am a few weeks ahead of you on my recent resale purchase of WKORV. According to my closing company, the ROFR was requested on June 12 and it was recieved on June 25th.

 

[cuppajoe]

Ways to establish when you sent them the document.

Send it via a carrier that requires a signature and can track a package, like FedEX or UPS.
Send it Registered Mail with Return Receipt.
Send it from a FAX machine that prints the date/time and phone number sent to on the document.

You do have to send them a complete copy of "Offer to Buy" including all terms and conditions.

"If the Developer decides to buy the Vacation Ownership Interest, then the Developer will send the Owner written notice of that decision within ten (10) business days after the Developer receives the Owner' notice of the Offer to Buy. ... If the Developer does not send notice of its decision to buy the Vacation Ownership Interest within the ten (10) business day period, then the Owner may sell the Vacation Ownership Interest to the person who submitted the Offer to Buy." This is from the Vacation Ownership Plan document for WKORVN, section 9.8, Right of First Refusal.

So if you send them a copy of the offer to buy, wait 10 business days after they receive it and don't hear back from them, you are good to go for the sale.

Greg

Thank you for the details! We'll get on this immediately, and hopefully be able to continue soon.

Cheers,
cj

 

[cuppajoe]

In case anyone is curious, it turns out that we should have faxed the information to begin with. The email we sent languished in someone's email box for weeks, since they were on vacation (I should have such a long vacation .

After making a few calls, I finally got in touch with the right folks at Starwood, and they were very helpful. After faxing the signed document, we got the right of first refusal waiver document emailed as a .pdf the next day!

Now, on with the rest of the title exchange rituals...

Cheers,
cj

 

[DeniseM]

Aren't you using a closing company for this transaction?

 

[cuppajoe]

Aren't you using a closing company for this transaction?

Yes, we're planning on using one mentioned in the TUG "How to sell your timeshare" faq, Timeshare Transfer. Seems like it's about equal in price and dependability to the others mentioned in there. Anyone have other places they recommend?

Cheers,
cj

 

[DeniseM]

I would have turned this over to the closing company right away - they would have taken care of the ROFR for you and you would be closer to completing your transaction.

 

[cuppajoe]

I would have turned this over to the closing company right away - they would have taken care of the ROFR for you and you would be closer to completing your transaction.

That's odd... they told the seller that we'd have to take care of this before they could do anything. Oh, well. It's done...

I'm hoping against hope that we'll complete soon and I'll be able to reserve our 2br for February, 2010. There were rooms available for rent, but don't know about availability for owners.

cj

 

[Fredm]

According to the Vacation Ownership Plan documents, Starwood is required to respond to a ROFR within 10 days of their receipt of the notice of planned sale. So if you have not heard from them in 3 weeks, and you have some sort of proof that you sent the required information, you should be OK to close the deal.

Greg

Once the ROFR review window has closed Starwood cannot later void the sale.
So, from this perspective it should be OK to close the deal.
The holdup occurs if the buyer wants title insurance. TI companies will not issue a policy if the waiver is not issued. At least that is true for the TI companies I have dealt with.