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AITA for thinking if ROFR fails on a free/bargain timeshare that the seller could show some appreciation?

The Colorado Kid

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All's fair in love and timeshare resales for sure...but would it kill a seller of a free/bargain timeshare to show some monetary appreciation to the almost-buyer of their timeshare when ROFR fails?

Hard to believe I am the only one who has ever had this thought...but I was wrong once before.

Would appreciate a civil discussion even if you do think IATA.

This strategy occurred to me because many low cost/bargain timeshares sit unsold due to buyers expecting ROFR to fail.

Offering an ROFR fail incentive could increase the success of resales and of course, ROFR either way is a win-win for the seller, not so much the buyer.

From the buyer's perspective, it's a big hassle/risk of providing personal information prior to the ROFR decision.

Sellers could offer like $100 to the prospective buyer if ROFR fails to enhance the likelihood that some buyer would consider that a fair trade for their participation.
 
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The Colorado Kid

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Let me understand this.

You came to an agreement with a seller to take their timeshare (for, lets say $1). It was taken in ROFR. And you want the seller to pay you? Do I have that right?

I have to admit, that thought would not even occur to me. And, even having it suggested, the mind boggles.
Excellent, so one vote for IATA!
 

The Colorado Kid

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Because many low cost/bargain timeshares sit unsold due to buyers expecting ROFR to fail. Offering an ROFR fail incentive could increase the success of resales.

From the buyer's perspective, it's a big hassle/risk of providing personal information prior to the ROFR decision.

Sellers could offer like $100 to the prospective buyer if ROFR fails to enhance the likelihood that some buyer would consider that a fair trade.
 

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I think this is an interesting concept. At first glance I think it would work better for sales that have a higher value attached to them. If the resort exercises a ROFR on a contract worth a few thousand dollars there would be some money to spread around.
 

daverunfast

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If it's going to fail ROFR, why not just do the transaction with association? We find another buyer at all?
 

The Colorado Kid

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I think this is an interesting concept. At first glance I think it would work better for sales that have a higher value attached to them. If the resort exercises a ROFR on a contract worth a few thousand dollars there would be some money to spread around.
Excellent! One vote for IANTA ha!
 

TheTimeTraveler

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I think the owner of an unwanted free week could should first check with their Resort prior to offering the week to the public. Doing so would allow the Resort to have the week outright and the owner would not need to take time to find a taker.

Under this scenario there would be no need for the ROFR paperwork since the Resort had already given up their chance to take the week.

I would think that the OP would want to check with the owner of the week(s) in question to see if the Resort had any interest in that no charge week. This way no one spins their wheels needlessly.




.
 

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Interesting concept but please have in mind that those who are getting rid of their timeshares for $1 paid tens of thousands of dollars to buy them and in many cases they are forced to sell due to financial difficulties or adverse life events now. You may really add insult to injury. It is a free market though and whatever works for you and the seller. The true beneficiary of the transaction is the developer that "should" be the one paying the $100 (in an ideal world).
 

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If the seller offers that as an incentive, that's one thing. But expecting compensation if they hadn't proposed it? I don't think so. It's not the seller's fault if it doesn't pass ROFR so asking for it when it wasn't offered is kinda a-0-ish.
 

sponger76

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I think the owner of an unwanted free week could should first check with their Resort prior to offering the week to the public. Doing so would allow the Resort to have the week outright and the owner would not need to take time to find a taker.

Under this scenario there would be no need for the ROFR paperwork since the Resort had already given up their chance to take the week.

I would think that the OP would want to check with the owner of the week(s) in question to see if the Resort had any interest in that no charge week. This way no one spins their wheels needlessly.




.
I know it doesn't make sense, but has it ever happened where the resort declined to take a deedback but then took the unit on ROFR during a giveaway?
 

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I know it doesn't make sense, but has it ever happened where the resort declined to take a deedback but then took the unit on ROFR during a giveaway?

I also wonder what the cost differences may be if a resort takes a deed back vs claiming an ROFR
 

The Colorado Kid

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If the seller offers that as an incentive, that's one thing. But expecting compensation if they hadn't proposed it? I don't think so. It's not the seller's fault if it doesn't pass ROFR so asking for it when it wasn't offered is kinda a-0-ish.
Thanks for your feedback...I never proposed to expect/ask for compensation if not agreed upon up front.
 

sponger76

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Thanks for your feedback...I never proposed to expect/ask for compensation if not agreed upon up front.
So... you're trying to monetize other people trying to giver their timeshares to you for free? Either you give me your timeshare for free so I can profit off of it or else give me $100 free profit if I don't get it for free? That's mafia... Like I said, if someone offers that as an incentive, that's fine. People offer to pay MFs, give gift cards, to try to offload their ownership and that's fine, even smart. But the other way kinda feels like a shakedown.
 

The Colorado Kid

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So... you're trying to monetize other people trying to giver their timeshares to you for free? Either you give me your timeshare for free so I can profit off of it or else give me $100 free profit if I don't get it for free? That's mafia... Like I said, if someone offers that as an incentive, that's fine. People offer to pay MFs, give gift cards, to try to offload their ownership and that's fine, even smart. But the other way kinda feels like a shakedown.
@sponger76 not sure where you are misreading my initial question...but you are.
 

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NTA.

If someone is stuck paying the MF on a timeshare they don’t want because it’s not a high demand resort, but they know the developer would take it back at a certain price via ROFR, it makes sense to have someone take the risk of the deal going through to encourage the developer to take it back and off the owners hands.

This is, of course, if the developer refused to take it back initially
 

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@sponger76 not sure where you are misreading my initial question...but you are.
Well, my initial thought was a situation where someone tried to give their ts to you for free, it failed ROFR, and you wanted $100 as compensation. Based on your response to my initial response, I misunderstood. So that leads me to believe that if someone is offering a giveaway, you want to ask them to give you $100 if it fails ROFR. If they won't agree to those terms, you won't participate in the process. What am I missing?
 

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There is definitely value to a seller to have someone be willing to take their place "on the hook" for a TS that they no longer want to continue paying for, forever. Obviously there is a value to the prospective buyer as well, as he/she needs to be willing to assume the liability that the seller no longer wants. If you want to be compensated, you are basically acting like a TS exit company, only better, since there is a "guarantee" the seller is getting out of the TS. So if that is the case, negotiate that up-front. "I will take that TS off your hands for $100 + $100 upon closing. It would be a good deal for some folks, and would probably make TS companies less likely to exercise ROFR.
 

DaveNV

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I can see the compensation being paid, but it would need to be discussed up front. Expecting it after the fact seems weird. I actually think any time ROFR happens on a legitimate resale purchase, especially if the seller is anxious enough to let their timeshare sell for $1, the losing buyer should get some sort of consolation prize compensation for their inconvenience. Maybe that seems right because it's happened to me.

Same thing when a timeshare purchase disappears mid-transaction. I had an experience about fifteen years ago, where I agreed to purchase a week at Coronado Beach Resort in San Diego from a well-known California resale broker. We went through all the purchase details and everything, they had my money and purchase paperwork, and everything was marching along fine - and then communication absolutely stopped cold. Weeks later I got my money returned, and an email with one sentence: "The timeshare is no longer available." Say what?? Not a word of explanation, no apology, nothing. Left me pretty sour about the whole situation.

Dave
 

bizaro86

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I think there are a few situations where this could make sense, eg developers where there is a fee to deedback but they still exercise ROFR.

Obviously would need to be negotiated in advance.

And as a practical matter, I think many of your potential "sellers" will think YTA for asking, so I'd expect some pushback when you bring that up...
 

PcflEZFlng

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I know it doesn't make sense, but has it ever happened where the resort declined to take a deedback but then took the unit on ROFR during a giveaway?
Yes. It didn't make sense to me either, but it happened.
 

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If it's going to fail ROFR, why not just do the transaction with association? We find another buyer at all?

The developer has a number at which he or she thinks the week will turn a decent profit. Anything sold for less than that number will be snatched up -- so they can keep selling the same resort over and over. At or above that number, it's not worth it to pay out the "gifts," the commissions and the OPC per-tour costs.
 

dioxide45

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From the buyer's perspective, it's a big hassle/risk of providing personal information prior to the ROFR decision.
What kind of information are you really providing and who are you providing it to? For a contract, all that is really needed is your name, address and maybe phone number. The closing company should be the one gathering any other information needed for ROFR. Not sure what else they need other than what is on the contract, much of which is available in the public domain anyway.

Given the volume of transactions you seem to do, as noted from you seemingly being first to post on many bargain deal giveaways, you are bound to run into some here and there that fail ROFR. It is just part of the game.
 
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