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Newbie Dodging a bullet

SpikeB

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Hi there. Thank you for this forum, it has been very helpful so far.
We got the pitch and while we are normally rational beings, bought a winter week at Grand Timber Lodge. We like Breckenridge and would visit often as we live nearby. We have 5 days to rescind, which I will do.

My question is that the contract includes a first right of refusal clause that I believe means that the developer has the right to step in and match any third party sales transactions. They explained that is how they keep the value in marketplace up. Is that true? Can they do that? It seems to me that they will always choose to buy and then resell at retail prices.

Also, when you buy resale do you loose any of the bundled club memberships or do they transfer with the deed?
 

Bill4728

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They tell you that at the TS sales pitch about ROFR and it's kind of true. But they generally don't step in till the price is much lower than the price they are asking. So for a $30,000 TS, they may not use ROFR till the price gets below $10K. So by buying resale you'd save $20,000.


Also, when you buy resale do you loose any of the bundled club memberships or do they transfer with the deed?
Some TS systems do lose significant benifits, like bundeled club memberships, when you buy resale. Some do not.

Come back and ask when you have narrowed down your choices.

Good Luck and Welcome to TUG
 

sernow

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In your case, because you did a timeshare tour at GTL, if you buy resale you lose the day-pass ability (this may or may not have any value to you). I don't know about any other perks you might lose, but I have heard about that one.

If it's not too presumptuous, may I ask how much they are charging?
 
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talkamotta

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There are alot of us here at TUG that bought from the developer ON OUR FIRST PURCHASE OR BEFORE TUG.

Rescind now, do your homework and if you want to buy from the developer then go back and buy. The same wonderful, terrific, once in a lifetime deal will be there when you go back.
 

AwayWeGo

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[triennial - points]
R. O. F. R. = R. O. F. L.

My question is that the contract includes a first right of refusal clause that I believe means that the developer has the right to step in and match any third party sales transactions.
That's unfortunate.
They explained that is how they keep the value in marketplace up. Is that true?
Not true.

ROFR = ROFL.
Can they do that?
Yes.

Not only that, some timeshare companies claim ROFR when they don't even have ROFR Sheesh.
It seems to me that they will always choose to buy and then resell at retail prices.
Not necessarily.

The timeshare companies holding ROFR on the timeshares they sell don't promise they'll buy back the timeshares & don't promise they will match any & all resale purchase offers. It's all up to the timeshare company & all for the benefit of the timeshare company.

The dirty little secret is that ROFR timeshares can still sell dirt cheap. All ROFR does is make it so nobody but the timeshare company gets to buy the timeshares dirt cheap. Plus, ROFR creates extra procedural barriers & delays & expenses, etc., while the company holding ROFR decides whether to paint or get off the ladder.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​


 

talkamotta

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There are many examples of how developers exercise thier ROFR on different threads.

Pahio is infamous for thier attempts. For example. Pahio KaEoKai located in Princeville. The only phase I have stayed in is phase III. Very nice resorts, lovely perfect area. Im not sure, maybe the resorts-2 bedrooms, 2,000 sq ft, I would rate it a solid 8-9 and its in Hawaii. Im just guessing, this resort originally sold for $20,000 from the developer. I just bought mine for $1850 this year. Pahio tried to exercise the ROFR and I called them on it (thanks again to TUG). The closing took 5 months which is twice as much time as it took to close on my eoy at this same resort and no ROFR was mentioned. This was irritating because I need to plan further in advance for Hawaii.

In the last couple of months, I have been paying attention to the Pahio resorts on ebay. The listings have been saying ROFR so the bids have been low. For example another 2 bedroom Pahio KaEoKai every year sold for under $600. Even after winning this one, if I wanted to buy another resort and it said anything about ROFR, I would think twice about putting in an offer. Why because the title company holds your money for months and months and you know you are in for a fight.

P.S. Didnt catch that you were already recinding in my previous post. Good move.
 
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SpikeB

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My thanks to everyone for the helpful responses. We sent in our letter of rescission priority mail with signature to be sure they receive and process it.

They were asking $65k for a three bedroom winter week. I am a big research hound and hate making decisions before I have the facts, but knew about the 5 day rescission period so we signed up. It scares me now to know how close we came to committing financial suicide.

The day use mentioned in a post was important to us, but will get over it.

Spike
 

AwayWeGo

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[triennial - points]
Maybe Not Suicide -- Just A Shot Through The Foot (Which Is Plenty Bad Enough).

It scares me now to know how close we came to committing financial suicide.
If I bought a big-bux timeshare at full freight, that would be more like shooting myself in the foot than committing financial suicide -- not fatal, but a painful & costly mistake to be avoided if at all possible. Congratulations on dodging that bullet no matter where it was aimed.

Some timeshare sellers who tell sales prospects that owners can enjoy "day use" of the resort are making it up. As it happens, on-site amenities & resort facilities, etc., are designed to accommodate the number of people actually checked in. Adding a bunch of day-users would cause overcrowding & so for that reason day use is not allowed at some (most?) timeshares no matter what the timeshare sellers say.

When it comes to promises, etc., spoken by timeshare sellers, be sure to get'm all in writing. If they're not in the contract, they don't count.

-- Alan Cole, McLean (Fairfax Couinty), Virginia, USA.​
 

rickandcindy23

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Maybe RCI points is something you should consider, if you want to visit Colorado often. You can get weeks in Colorado and get "day use" for long weekends for 9,000 points at many resorts. I think this would be a great way to check out all of the RCI resorts up in the hills. Total cost at 1 cent per point would be $129 exchange fee plus $90 for the points.

II just doesn't value Colorado the way RCI does. I wouldn't buy a week that would exchange only in II. I know of one resort that is dual-affiliating with RCI very soon and is happy to get out from under that company's exclusive agreement. :)
 
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