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Marriott exercised ROFR and MF are coming due.

B

brianfox

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Hoping someone has encountered this before.

Selling a Marriott week and Marriott has just exercised ROFR (I will update ROFR.net).
So, MF will be due before this closes completely.
Had Marriott NOT exercised ROFR, I would of course pay the MF and buyer would reimburse me.

But what happens when ROFR is exercised? Do I still pay the MF, or do I not, because it's Marriott?

Thanks in advance
 
My understanding of ROFR is this: Marriott will match the exactly same terms as what you agreed with the buyer. If the usage starts next year and the buyer is responsible for the MF, Marriott should do that as well, which means you do not need to pay next year's MF.
 
rthib said:
What if you refuse to sign no disclosure?
Click to expand...

It's part of the ROFR package.

I suppose one could argue that Marriott's offer must match the offer it ROFR's and non-Marriott offers obviously don't include NDA's, but I wanted to close my deal and had already posted my transaction to ROFR.net.
 
Sorry to hear Marriott ROFRed your deal. That happened to me last year on a Westin Kaanapali Island View Deluxe I got rid of (fees way higher than regular unit). The experience was a bad one due to the "Marriott process" taking about four months longer than the private deal that they "took over" would have. I chose not to pay the fees that had become due in the months I was waiting for Marriott to process their purchase, and no fines or extra fees were charged in the final adjustments of escrow. I can't see if fees or fines were charged after the due date, but in the settlement statement, I can see that there were no deductions for the fees (or fines) due for the year it finally did close. Either way you choose to deal with it, it should all work out with a credit to you in escrow if you do pay. I chose not to risk having to fight for the maintenance fees back and it worked out fine.
 
rthib said:
What if you refuse to sign no disclosure?
Click to expand...
DVC tried this. I refused to sign it willing to walk away from the deal. They blinked first and completed the process without the no disclosure form.
 
vacationtime1 said:
Marriott is going to demand a non-disclosure agreement as part of its ROFR package -- so please post to ROFR.net before you are bound by that contract.
Click to expand...

What don’t they want disclosed?
 
rthib said:
What if you refuse to sign no disclosure?
Click to expand...
They either back out or don't demand. They cannot request anything different than your orig. deal, but they know sellers don't want the hassle and go along with it.
 
rthib said:
What if you refuse to sign no disclosure?
Click to expand...

This raises an interesting legal question. If you refuse to sign the non-disclosures they are demanding, does the ROFR fall through and thus the buyer then get to buy the property? Although they have a right to ROFR if it was in the original TS agreement, non-disclosures were not part of the ROFR mandate.

I cannot see how they can slip a non-disclosure into the paperwork after the fact and enforce ROFR as long as the seller is complying with the other ROFR documents. Non-disclosures are not a government compliance requirement but are at the convenience of the TS system. That's like saying "You signed an ROFR when you bought the timeshare but we can add whatever additional terms into what constitutes ROFR after the fact. "

IMHO...The seller should be free to sell to the original buyer because the TS system wanted additional terms beyond the ROFR agreed to in the original timeshare agreement (namely non-disclosure) which the seller never agreed to, so the TS developer will pass on the ROFR purchase, or the TS company will continue with the ROFR without it.

(FYI I am not a lawyer but would love to get a lawyer like @Grammarhero or @Fredflintstone to weigh in on this. )
 
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You can refuse as the ROFR replacement needs to assume the exact terms of the contract, but after the 2-3+ months it takes Marriott (at least based on my experience) to prepare paperwork, do you really want to challenge non-disclosure as a seller when it is likely your original buyer has moved on?

IMHO, it's not worth it.

Ryan



Sent from my SM-G781U using Tapatalk
 
sjsharkie said:
You can refuse as the ROFR replacement needs to assume the exact terms of the contract, but after the 2-3+ months it takes Marriott (at least based on my experience) to prepare paperwork, do you really want to challenge non-disclosure as a seller when it is likely your original buyer has moved on?

IMHO, it's not worth it.

Ryan



Sent from my SM-G781U using Tapatalk
Click to expand...

Sad. The level of greed and anti-market competitiveness by these timeshare companies never ceases to amaze me.

The delay creates an opportunity. Seller could update prior to signing as stated previously by @vacationtime1 because non-disclosure was not part of the seller-buyer deal, How would the seller know there was a non-disclosure coming? Especially since it wasn't specified in the original ROFR agreement terms.

Also you, or friend or TUG or ROFR could create an alias on ROFR so how could anyone track it?

At least they can't throttle ROFR entries that they have have passed on buying so you can still get a good idea of the threshold.
 
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So, this thread got instantly sidetracked with non-disclosure, which was in no way part of my original question....

Hopefully back to the main Q - As Marriott has exercised ROFR, should I still pay the upcoming 2021 MF and expect Marriott to reimburse me?
 
I called Marriott Resale department (866-682-4547) and they said based on my original contract (first year usage 2021, with week reserved in 2021) I should pay the MF and Marriott will reimburse.
They said it will take 60-90 days for Marriott to prepare the contract.

Do others have experience with this situation? One person has responded that they did NOT pay the MF and did not incur any problems (other than a very long delay for Marriott to do paperwork)
 
I wouldn't pay it.

It is December. Any competent escrow officer should be able to close a simple transaction before year end; sales of million dollar homes easily close within a month. If Marriott (which does the escrows internally) cannot, it is their problem and not your problem; there is no reason to make recovering MF's for a year you don't own into your problem.
 
no they can bill the new owner who will get the 2021 use
 
alexadeparis said:
no they can bill the new owner who will get the 2021 use
Click to expand...

Marriott is the new owner for the time being??


OP: What did the Contract with the original purchaser say about 2021 MF's?
 
It's an obvious answer: Write a letter with current date to Marriott indicating that this sale to your buyer was scheduled to close prior to 2021 with contract proof that the buyer was to pick up 2021 MF. Now that MVC has given you ROFR prior to 2021 and you won't have access to the points, they will cover the cost on this given their ROFR reflects the same terms as with your buyer. Get a timestamp receipt proof of mailing prior to 2021.

If they don't like it, they will contact you just prior to closing and you can present a copy of the letter. They can't take money for 2021 usage you can't use. Better to have them fight you for the money rather than trying to fight their bureaucracy for a refund.
 
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