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DRI - Do they have ROFR policy?

RLS50

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Question for the DRI folks here from a legacy Gold Key owner...

Does DRI have a ROFR policy? And if so is it aggressive? Do they seem to have a metric (20% + or -) that can be calculated like the Marriott folks have determined?

I am in the process of purchasing another Gold Key property that has not been transferred to me yet. I called Gold Key yesterday and they said that they are behind a bit on transfers since they are in the middle of billing out 2016 MF's.

Since the DRI deal is supposed to close on 10/17, I am curious what changes DRI might implement and how fast.

Thanks in advance for any insight that you can offer.
 

gjw007

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ROFR is meaningless unless the developer aggressively uses it. To the best of my knowledge dri does not exercise any rofr. Why should they when owners will pay them to give their ownship back.
 

friedshrimp

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Yes, DRI has an ROFR policy. No, I've never heard of them exercising it. Then again, with DRI now accepting deedbacks, they pretty much don't have a need for their ROFR policy.

The first thing you can expect after the change is for DRI to try to get you to change to the point based trust. For some folks (like me), points are good. For others (people who only take week vacations), points are useless.
 

tschwa2

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Technically it is the property that would have to have ROFR. If Gold Key wrote it in the original documents (which I think they may have for the VB properties) then DRI assumes developer rights and could exercise ROFR. If ROFR is in play I could see them exercising for summer weeks sold at a low price because they have almost no summer inventory unless they can get owners to convert to points. I doubt they would exercise on shoulder and they won't exercise for off season. They probably have enough of that inventory.
 

friedshrimp

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Technically it is the property that would have to have ROFR. If Gold Key wrote it in the original documents (which I think they may have for the VB properties) then DRI assumes developer rights and could exercise ROFR. If ROFR is in play I could see them exercising for summer weeks sold at a low price because they have almost no summer inventory unless they can get owners to convert to points. I doubt they would exercise on shoulder and they won't exercise for off season. They probably have enough of that inventory.

Out of curiosity (since I've never tried this), if DRI wants to exercise their ROFR, do you have to sell it to them for the same price that you were trying to sell to another perspective buyer? Example, you want to sell you week/points to a family member for $1 and DRI wants to exercise ROFR. Do you have to sell it to DRI for the same $1 or can you up the price to $XXX (insert any number here)?
 

RLS50

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Out of curiosity (since I've never tried this), if DRI wants to exercise their ROFR, do you have to sell it to them for the same price that you were trying to sell to another perspective buyer? Example, you want to sell you week/points to a family member for $1 and DRI wants to exercise ROFR. Do you have to sell it to DRI for the same $1 or can you up the price to $XXX (insert any number here)?
That was something I was wondering about myself out of curiosity.

It seems like the Marriott owners are the most well versed when it comes to ROFR criteria and scenarios. Marriott seems to be pretty active excercising their ROFR rights if the selling price isn't high enough. I am not sure how Marriott handles those situations you posed.

I suppose there would be ways around this. Hypothetically, you could charge your adult child $9,900 for a property and then turn around and give them $9,800 as an anniversary gift or something.
 

Ty1on

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That was something I was wondering about myself out of curiosity.

It seems like the Marriott owners are the most well versed when it comes to ROFR criteria and scenarios. Marriott seems to be pretty active excercising their ROFR rights if the selling price isn't high enough. I am not sure how Marriott handles those situations you posed.

I suppose there would be ways around this. Hypothetically, you could charge your adult child $9,900 for a property and then turn around and give them $9,800 as an anniversary gift or something.

ROFR doesn't apply to passing contracts to an immediate family member.

If a developer exercises ROFR, they take the place of the original buyer, and take over the contract under the same terms the original buyer had.
 

RLS50

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Technically it is the property that would have to have ROFR. If Gold Key wrote it in the original documents (which I think they may have for the VB properties) then DRI assumes developer rights and could exercise ROFR. If ROFR is in play I could see them exercising for summer weeks sold at a low price because they have almost no summer inventory unless they can get owners to convert to points. I doubt they would exercise on shoulder and they won't exercise for off season. They probably have enough of that inventory.
Just to be clear so I understand exactly what you are calling shoulder and offseason, you are speaking about anything outside of Weeks 22-34 correct?
 

tschwa2

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Also many developers won't ROFR if the transfer is specifically listed as a gift, even if not to an immediate family member. Selling it to a friend for a good price is different though and can be ROFR. The developer can buy the unit for the same terms (amount of money) as the contract. ROFR doesn't help the owners unless the developer exercises regularly under a certain price point. If it is sporadic or not used, it just means the owner has to find their own buyer and then the developer can take the unit or make the owner jump through another hoop or pay another fee if ROFR is waived.
 

Egret1986

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A couple of weeks back there was an auction on eBay for one of the Gold Key Resorts

Question for the DRI folks here from a legacy Gold Key owner...

Does DRI have a ROFR policy? And if so is it aggressive? Do they seem to have a metric (20% + or -) that can be calculated like the Marriott folks have determined?

I am in the process of purchasing another Gold Key property that has not been transferred to me yet. I called Gold Key yesterday and they said that they are behind a bit on transfers since they are in the middle of billing out 2016 MF's.

Since the DRI deal is supposed to close on 10/17, I am curious what changes DRI might implement and how fast.

Thanks in advance for any insight that you can offer.

It was a prime Summer week, starting bid was $.01, plus a $300 gift card. As soon as I saw the listing, I contacted the seller and made an offer of $1500 and told them I didn't need the gift card. It was a couple of days before they contacted me back and said that GKR took the week back. I am assuming for the $.01. :eek: I wonder if they took the $300 gift card also. :D
 

tschwa2

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Did you sign a sales contract? The ROFR would have been on your purchase price. Did you see the ROFR? While I imagine that gold key might exercise ROFR for many sellers, I would also no put it past them to say it was ROFR when they simply listed the wrong week or the week was no longer available for whatever reason.
 

RLS50

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It was a prime Summer week, starting bid was $.01, plus a $300 gift card. As soon as I saw the listing, I contacted the seller and made an offer of $1500 and told them I didn't need the gift card. It was a couple of days before they contacted me back and said that GKR took the week back. I am assuming for the $.01. :eek: I wonder if they took the $300 gift card also. :D
Wow, that sounds kind of odd. Maybe they did a deed back with GK?

Anyway, it is kind of disappointing to me to hear Gold Key might be active at ROFR. But somehow the Marriott folks seem to have done a really great job at figuring out the ROFR thresholds for different properties and seasons. I am sure Gold Key/DRI must have some kind of similar metric they use?

It would be good to know in case anything comes up one might be interested in.
 

Egret1986

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I found it odd that the opening bid was a penny and a $300 GC was also being offered

Wow, that sounds kind of odd. Maybe they did a deed back with GK?

Anyway, it is kind of disappointing to me to hear Gold Key might be active at ROFR. But somehow the Marriott folks seem to have done a really great job at figuring out the ROFR thresholds for different properties and seasons. I am sure Gold Key/DRI must have some kind of similar metric they use?

It would be good to know in case anything comes up one might be interested in.

Usually, these types of auctions are for dog weeks and/or resorts. Maybe the seller didn't do the research to know that this was a primo week and a sought after resort. Like you said, maybe they did a deed back with GKR to offload it from their inventory thinking that it had no value.

Who knows? :shrug:
 

RLS50

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Usually, these types of auctions are for dog weeks and/or resorts. Maybe the seller didn't do the research to know that this was a primo week and a sought after resort. Like you said, maybe they did a deed back with GKR to offload it from their inventory thinking that it had no value.

Who knows? :shrug:
Yeah. I know GKR must have a metric they used. I think I remember reading your comments on TUG that you bought other prime weeks at auctions? Since I am assuming you now own them they got thru the ROFR review. Since I am new to this I don't have any history to figure out the math. But I am curious so maybe I will start paying more attention to this stuff.

Looking forward to your report back from OBX and Beachwoods in the next couple of weeks! :clap: Please share when you can.
 

friedshrimp

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ROFR doesn't apply to passing contracts to an immediate family member.

If a developer exercises ROFR, they take the place of the original buyer, and take over the contract under the same terms the original buyer had.

And what if you don't want the developer to take the contract? Can you cancel the contract if you see the developer is exercising ROFR?

This is the thought. There are a lot of people who are upset with DRI for whatever reason and decide they want to get rid of their contract to a family member (not the kids) or a friend. The original contract is say for a dollar. If DRI wants to exercise ROFR, can the cheap sale be cancelled (because while the seller may not mind losing money to give something to help a friend or family member out they don't want DRI to be able to make more money reselling the points)? Then, as another poster alluded to, rewrite the contract to the same person for say $2,000 and give the person $1,999 after the transaction so it would pass ROFR. I've never sold a TS (and never plan to as my kids want mine after I'm gone) but I'm curious as to the teschnical aspect of ROFRs.
 

Ty1on

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And what if you don't want the developer to take the contract? Can you cancel the contract if you see the developer is exercising ROFR?

This is the thought. There are a lot of people who are upset with DRI for whatever reason and decide they want to get rid of their contract to a family member (not the kids) or a friend. The original contract is say for a dollar. If DRI wants to exercise ROFR, can the cheap sale be cancelled (because while the seller may not mind losing money to give something to help a friend or family member out they don't want DRI to be able to make more money reselling the points)? Then, as another poster alluded to, rewrite the contract to the same person for say $2,000 and give the person $1,999 after the transaction so it would pass ROFR. I've never sold a TS (and never plan to as my kids want mine after I'm gone) but I'm curious as to the teschnical aspect of ROFRs.

I don't see why the seller couldn't decline to complete a sale that has gone ROFR.

And, are you suggesting being dishonest to skirt ROFR? :ignore: :hysterical:
 
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