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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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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.
I didn't post this idea to complain about ROFR fails.

I've appreciated many of the thoughtful responses so far.

Two thoughts provided the impetus to post this:

1) If I were the seller and the ROFR failed I would all on my own give my buyer $100 or so for the hassle factor and as a sincere thank you for getting me to my goal.

2) If sellers have a property that is not moving...offering an additional ROFR fail incentive could be the tipping point to encourage a buyer to enter into the purchase.
 

CaliSunshine

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If the property's not selling, just offer a gift card. I've rarely seen gift cards more than $100 so even low dollar value gift cards seem to be pretty effective.
 

The Colorado Kid

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If the property's not selling, just offer a gift card. I've rarely seen gift cards more than $100 so even low dollar value gift cards seem to be pretty effective.
Thanks for the feedback...but the buyer wouldn't receive the gift card if ROFR fails, correct?
 

echino

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Consider this (very possible) scenario:

- Buyer agrees to buy a timeshare for $1. Buyer pays closing costs.
- Buyer and Seller sign an agreement and send it to LT Transfers.
- LT Transfers charges the Buyer a non-refundable $100 deposit towards closing costs.
- LT Transfers submit the agreement to ROFR, and the developer exercises.
- Buyer is out $100
 

dioxide45

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Consider this (very possible) scenario:

- Buyer agrees to buy a timeshare for $1. Buyer pays closing costs.
- Buyer and Seller sign an agreement and send it to LT Transfers.
- LT Transfers charges the Buyer a non-refundable $100 deposit towards closing costs.
- LT Transfers submit the agreement to ROFR, and the developer exercises.
- Buyer is out $100
I think that is another scenario entirely with a different answer. Not one just for "hassle factor" or risk from putting personal information out there.
 

The Colorado Kid

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Consider this (very possible) scenario:

- Buyer agrees to buy a timeshare for $1. Buyer pays closing costs.
- Buyer and Seller sign an agreement and send it to LT Transfers.
- LT Transfers charges the Buyer a non-refundable $100 deposit towards closing costs.
- LT Transfers submit the agreement to ROFR, and the developer exercises.
- Buyer is out $100
@echino Excellent callout, thanks!
 

rjwehr

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It's an interesting thought. As a seller, I would view it as a sales incentive... just like the common practice of paying the next year's maintenance as part of the sale. As a buyer, I would view it as a "good faith" guarantee that the seller will try their best to sell me the unit, but if the developer exercises ROFR, at least I would receive something for my trouble.

Just my 2 cents...
 

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IF the ts had been sitting unsold for a while, and IF the buyer is paying closing costs as @enchino says above, and IF it was negotiated in advance. Then yes.
 

The Colorado Kid

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It's an interesting thought. As a seller, I would view it as a sales incentive... just like the common practice of paying the next year's maintenance as part of the sale. As a buyer, I would view it as a "good faith" guarantee that the seller will try their best to sell me the unit, but if the developer exercises ROFR, at least I would receive something for my trouble.

Just my 2 cents...
@rjwehr I like the succinct way you put this - one more vote for IANTA
 

The Colorado Kid

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IF the ts had been sitting unsold for a while, and IF the buyer is paying closing costs as @enchino says above, and IF it was negotiated in advance. Then
IF the ts had been sitting unsold for a while, and IF the buyer is paying closing costs as @enchino says above, and IF it was negotiated in advance. Then yes.
@goaliedave Help me understand why it matters that the buyer is paying closing costs?
 

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Because if the seller already lost the LT Transfers money, they shouldn't be out more. But if the buyer lost it he should be reimbursed as he got nothing.
 

rickandcindy23

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I think it's a great strategy. Think of the money people pay these scammers to get rid of their timeshares.
 

dioxide45

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If sellers have a property that is not moving...offering an additional ROFR fail incentive could be the tipping point to encourage a buyer to enter into the purchase.
Generally if a property has ROFR, it is coming from a major developer (Marriott, Hilton, Vistana), not always, but quite often. In these cases, the owner could quite often just call up the developer and ask them to take the week back via deedback. Instead they are offering it up to the regular joe to be able to take it for free. These weeks usually have several people asking or DMing the owner about it, so it isn't like they need to offer an incentive. Perhaps the one in question here is an exception?
 
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Consider this (very possible) scenario:

- Buyer agrees to buy a timeshare for $1. Buyer pays closing costs.
- Buyer and Seller sign an agreement and send it to LT Transfers.
- LT Transfers charges the Buyer a non-refundable $100 deposit towards closing costs.
- LT Transfers submit the agreement to ROFR, and the developer exercises.
- Buyer is out $100
In your scenario the $100 is a fee that is part of the transaction and the resort would have to pay it as that would be part of the cost. The buyer is not out anything when the resort exercises ROFR.
 

dioxide45

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In your scenario the $100 is a fee that is part of the transaction and the resort would have to pay it as that would be part of the cost. The buyer is not out anything when the resort exercises ROFR.
The $100 in the scenario has to be paid to LT Transfers before they start the process. Once paid, LT Transfers submits the necessary information to the resort for ROFR. Someone has to pay it.
 
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The $100 in the scenario has to be paid to LT Transfers before they start the process. Once paid, LT Transfers submits the necessary information to the resort for ROFR. Someone has to pay it.
The $100 initial fee should be submitted by LT Transfers as part of the total “offer” cost of the buyer. If the Resort wants to exercise ROFR then they have to pay that fee to LT transfers as part of it and LT Transfers should then refund the initial fee to the unsuccessful buyer. The fee should be written into the contract as part of the total cost. If for some reason it’s not, then I suppose you’re right, but that’s a mistake in how the contract is written as it can be written to avoid your scenario.
 
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dioxide45

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The $100 initial fee should be submitted by LT Transfers as part of the total “offer” cost of the buyer. If the Resort wants to exercise ROFR then they have to pay that fee to LT transfers as part of it and LT Transfers should then refund the initial fee to the unsuccessful buyer. The fee should be written into the contract as part of the total cost. If for some reason it’s not, then I suppose you’re right, but that’s a mistake in how the contract is written as it can be written to avoid your scenario.
Yes, one could write up the contact better when ROFR is involved. In that the buyer will pay the seller $100. Then have the seller put up the $100 and if it is exercised then the resort pays the $100 back to the seller. If it isn't exercised, then the buyer pays it back as part of closing. Getting someone who wants to give away their timeshare for free to front the $100 may be the only challenge, regardless if they know they will get it back. Sometimes it can take months for developers to close on a ROFR transaction.
 

echino

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In your scenario the $100 is a fee that is part of the transaction and the resort would have to pay it as that would be part of the cost. The buyer is not out anything when the resort exercises ROFR.

OK, maybe the unsuccessful Buyer is not out $100 completely if the contract is written correctly, but it's going to be 6 to 12 months before the developer actually pays.
 

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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.




.
in addition to this i think people might be surprised at how many friendly email swaps with the resort would result in a free and painless deedback transaction. Now i know not all are like this But at least make the attempt.
 

montygz

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I didn't post this idea to complain about ROFR fails.

I've appreciated many of the thoughtful responses so far.

Two thoughts provided the impetus to post this:

1) If I were the seller and the ROFR failed I would all on my own give my buyer $100 or so for the hassle factor and as a sincere thank you for getting me to my goal.

2) If sellers have a property that is not moving...offering an additional ROFR fail incentive could be the tipping point to encourage a buyer to enter into the purchase.
Make sure the incentive comes as a $100 Visa gift card and a coupon for a free breakfast. You should get hundreds of interested buyers!
 

davidvel

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Generally if a property has ROFR, it is coming from a major developer (Marriott, Hilton, Vistana), not always, but quite often. In these cases, the owner could quite often just call up the developer and ask them to take the week back via deedback. Instead they are offering it up to the regular joe to be able to take it for free. These weeks usually have several people asking or DMing the owner about it, so it isn't like they need to offer an incentive. Perhaps the one in question here is an exception?
I agree with this. The basic premise that there are tons of TS weeks just sitting there, that the developer would buy/ROFR if someone would just offer some money, makes no sense for a bunch of reasons.

If the developer is dying to pay for the TS but there are not any potential buyers (doubtful), then the seller could just present a straw man ROFR and the developer would snap it up. They don't need to offer $100 to anyone.
 
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goaliedave

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Generally if a property has ROFR, it is coming from a major developer (Marriott, Hilton, Vistana), not always, but quite often. In these cases, the owner could quite often just call up the developer and ask them to take the week back via deedback. Instead they are offering it up to the regular joe to be able to take it for free. These weeks usually have several people asking or DMing the owner about it, so it isn't like they need to offer an incentive. Perhaps the one in question here is an exception?
In my case, i offered it back in October and they said they'd take it back if i paid the next year's MF. No way! I would have gladly paid $100 to a buyer to take it
 

PcflEZFlng

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In my case, i offered it back in October and they said they'd take it back if i paid the next year's MF. No way! I would have gladly paid $100 to a buyer to take it
In my case, I offered it back and they refused. So I put it on the market for free, paying the next year's MF as an incentive. Then, to my surprise, the developer exercised ROFR when I found a buyer. Then, to my surprise, they refunded my MF after closing.
 
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