How does "Right of First Refusal" work?

[Suesue1738]

I just got my newsletter from my Galveston resort, and it says to be aware that if you trying to sell your unit, the Owners Association has "right of first refusal"? How does that work? If they don't like the price I'm getting, can they just "block" the sale? Or do they take it back for that price and resale it themselves? How does all that work?

 

[DeniseM]

If the resort has formal right of first refusal, they can buy the timeshare at the same price you are selling it for, if they want to. It's not a block - they buy it.

 

[Suesue1738]

Thanks, Denise. I guess the "buyer" is then just "out of luck?"

 

[chalee94]

Thanks, Denise. I guess the "buyer" is then just "out of luck?"

Right - the seller gets paid by the developer, and the intended buyer has to start over from scratch.