New Method to Passing ROFR?

[badbeatjackpot]

Hi guys, I was just thinking, can timeshare companies exercise ROFR on a free timeshare?
I.E. If I "GIVE" my timeshare to a "close family friend" for free as a gift, can the timeshare company stop it?

So the "friend" can pay the transfer fees, etc but the timeshare itself would be "free". However, the friend will perhaps "purchase" a bluray disk from me later in time as agreed by a notarized contract for $10 000 which is held in escrow after the transfer for my timeshare goes through. This would be a separate independent deal that the timeshare company would not even have the right to know about.

Sorry, I was bored at work today and the idea came to me...


edit...
nvm...

sorry I think I just found my own answer... You have to always sell it for something and you can't give property away...
is that it?

 

[nazclk]

ROFR

No they can not stop a gift of a timeshare

 

[Fredm]

Hi guys, I was just thinking, can timeshare companies exercise ROFR on a free timeshare?
I.E. If I "GIVE" my timeshare to a "close family friend" for free as a gift, can the timeshare company stop it?

So the "friend" can pay the transfer fees, etc but the timeshare itself would be "free". However, the friend will perhaps "purchase" a bluray disk from me later in time as agreed by a notarized contract for $10 000 which is held in escrow after the transfer for my timeshare goes through. This would be a separate independent deal that the timeshare company would not even have the right to know about.

Sorry, I was bored at work today and the idea came to me...

Nothing new about it. It is fraud.
Not to say you would not get away with it, but it is no different than increasing (doctoring) the price to pass ROFR. Fraud is fraud.

BTW, in the real world why would a seller go to the trouble of doing what you suggest? A buyer may want the seller to do it. But, where is the benefit to the seller?
Oh wait, I know. The seller wants the buyer to have it for less than its market value, and wants to make sure the developer does not snatch it from under the buyers nose. That's why you titled the thread "new method to Passing ROFR".

 

[Saintsfanfl]

sorry I think I just found my own answer... You have to always sell it for something and you can't give property away...
is that it?

No, property can be gifted and happens all the time. The problem is that what you are describing is not a gift. Instead, it is a scam in order to circumvent Marriott's contractual right. It's definitely a civil issue but could be criminal as well, I am not sure. In either case, it is definitely not a good idea.

 

[badbeatjackpot]

Nothing new about it. It is fraud.
Not to say you would not get away with it, but it is no different than increasing (doctoring) the price to pass ROFR. Fraud is fraud.

BTW, in the real world why would a seller go to the trouble of doing what you suggest? A buyer may want the seller to do it. But, where is the benefit to the seller?
Oh wait, I know. The seller wants the buyer to have it for less than its market value, and wants to make sure the developer does not snatch it from under the buyers nose. That's why you titled the thread "new method to Passing ROFR".

A lot of times, you see sellers selling for a great price that you are pretty sure wont pass ROFR because they want to get rid of it. (Who knows, financial distress ,etc)

Market value is what the market will pay for it. So market value may be quite low which might not pass ROFR

You are right in that a seller may not have incentive to go through all of this because at the end of the day, all they care is that they sell for the price that is posted.

However, if there WAS an incentive for the seller, then it is entirely possible that a seller might do this.

For example, if there are rumours that a TS's ROFR is 10 000 but a seller needs to sell and there isn't demand at 10 000, seller might list for 5 grand.

Now the buyer would want to buy this but chances are ROFR would be excercised.

We know that seller is OK with 5000.
So what if buyer says, why don't you be a great guy and gift it to me, I'll pay the transfer fees. Oh by the way? do you have anything else to sell like a baseball card? I will give you $6000 for that baseball card and put it in contract writing that I will buy this card because of the goodwill gesture you showed me.

There has been no scam or fraud because no circumvention has been explicitly stated.

 

[Fredm]

A lot of times, you see sellers selling for a great price that you are pretty sure wont pass ROFR because they want to get rid of it. (Who knows, financial distress ,etc)

Market value is what the market will pay for it. So market value may be quite low which might not pass ROFR

You are right in that a seller may not have incentive to go through all of this because at the end of the day, all they care is that they sell for the price that is posted.

However, if there WAS an incentive for the seller, then it is entirely possible that a seller might do this.

For example, if there are rumours that a TS's ROFR is 10 000 but a seller needs to sell and there isn't demand at 10 000, seller might list for 5 grand.

Now the buyer would want to buy this but chances are ROFR would be excercised.

We know that seller is OK with 5000.
So what if buyer says, why don't you be a great guy and gift it to me, I'll pay the transfer fees. Oh by the way? do you have anything else to sell like a baseball card? I will give you $6000 for that baseball card and put it in contract writing that I will buy this card because of the goodwill gesture you showed me.

There has been no scam or fraud because no circumvention has been explicitly stated.

Intent to fraud is fraud.

As I said, you may get away with it. Of course, at this point the seller now becomes a party to the fraud. Just get a seller to agree to that.

In the real world a seller will have no trouble getting rid of a timeshare at half the developers ROFR exercise price, without having to bend the deal the way you suggest.

Your original post places you in the position of the hypothetical seller.
Your most recent post places you in the position of the buyer. THAT I understand.