HGV - First Right of Refusal

[bfish1953]

We are looking at buying 2 weeks at a HGV location from an individual but just found out that the Hilton wants to have a first right of refusal clause added to the deed title before the people we are buying sends to us. They bought these weeks several years ago and it is not currently on their deed. Is this something new? Can we keep them from putting that on our deed? Any help is appreciated.

 

[GT75]

Which property ?

 

[SmithOp]

Are you sure they are just not requiring an Estoppel with ROFR clearance? Even if they don't have ROFR HGV requires all sales to first apply for the Estoppel.

I don't think they can just change deeds like that.

Sent from my SM-G970U using Tapatalk

 

[Talent312]

It sounds like they want a ROFR clause in the deed. The answer to which is "it depends."

Flamingo is the only HGVC property w/o ROFR, and they have no right to add it there.

Other HGVC properties have it as part of their covenants+declarations, even if not on the deed.
Adding it to deeds for these merely puts future buyers on notice of HGVC's rights therein.

HGVC prolly sees many transactions that did not follow the ROFR process, and heard
the excuse, "But it wasn't in the deed."

 

[brp]

It sounds like they want a ROFR clause in the deed. The answer to which is "it depends."

Flamingo is the only HGVC property w/o ROFR, and they have no right to add it there.

Interestingly, even for Flamingo, it goes through the "ROFR process" even though they can't exercise it. The chances of passing, though, are pretty good

Cheers.

 

[gologo]

I always buy on the secondary market and have never had a purchase refused....even when 3400 annual points sold for $1

 

[JohnPaul]

I always buy on the secondary market and have never had a purchase refused....even when 3400 annual points sold for $1

I had a $15,000 offer for a Platinum Studio week (5250 BHC points) at W 57th St taken by ROFR.

 

[TDub1313]

I wonder how the pandemic will impact ROFR? Is it possible that they would scale back even more to keep cash on hand. Buying contracts back that they currently can’t sell seems like it could be a problem. Also any MF responsibilities that would come with exercising ROFR. If a recession is looming, cash might be better to hold than to use on ROFR?

 

[GT75]

I wonder how the pandemic will impact ROFR?

IMO, I expect that HGV would wave most (maybe all) ROFR during this time.

 

[MPrince]

IMO, I expect that HGV would wave most (maybe all) ROFR during this time.

Most, probably, but not all. I have made offers on four properties since March. Two, at Elara, passed ROFR. One is pending, but it's Flamingo so that will pass. One was at Ocean Oak (5000 points for $1,250) and that one did not pass ROFR. (Nor did I expect it to). This was 2 or 3 weeks ago.

 

[dayooper]

Most, probably, but not all. I have made offers on four properties since March. Two, at Elara, passed ROFR. One is pending, but it's Flamingo so that will pass. One was at Ocean Oak (5000 points for $1,250) and that one did not pass ROFR. (Nor did I expect it to). This was 2 or 3 weeks ago.

There was post awhile ago (6-9 months) where a member said they were told by a broke that HGVC wasn’t exercising ROFR on Elara. It saying the broker was correct, but it was reported here.

 

[BK2019]

Most, probably, but not all. I have made offers on four properties since March. Two, at Elara, passed ROFR. One is pending, but it's Flamingo so that will pass. One was at Ocean Oak (5000 points for $1,250) and that one did not pass ROFR. (Nor did I expect it to). This was 2 or 3 weeks ago.

I heard that ROFR at Ocean Oak doesn't go through the main office in Orlando, but it's handled at the offices and they are much more aggressive on buy backs.

 

[Smclaugh99]

IMO, I expect that HGV would wave most (maybe all) ROFR during this time.

I agree with this assessment. And they are doing it quickly, apparently. I just got notification for waived ROFR on a property I bought on EBay. Completed paperwork was submitted on May 4th and closing company emailed me today (May 14th) and said they received the waiver and we can proceed with deeding. It’s almost too quick to believe.

Sean

 

[escanoe]

Guess they want the fees associated with a resell unit coming in more quickly.

I agree with this assessment. And they are doing it quickly, apparently. I just got notification for waived ROFR on a property I bought on EBay. Completed paperwork was submitted on May 4th and closing company emailed me today (May 14th) and said they received the waiver and we can proceed with deeding. It’s almost too quick to believe.

Sean