Odds that Hyatt will exercise it's ROFR?

[SouthlakeLion]

Just made an offer on a Hyatt timeshare in San Antonio for 10K. It's a 1400 point, 2BR unit. Seller has agreed to pay closing costs and transfer fee. I know Hyatt sells these "new" for around 18K. Any idea what my chances are of having this go through?

 

[Floridaski]

You are fine

It will pass ROFR, it is a silver season and it seems that most ROFR are exercised on 2000 and 2200 point weeks. Also, based on price it will pass without any problem - I am assuming that you got the unit, resort and week that you wanted. If you are purchasing to use with other Hyatts you could have saved some money and purchased a 1400 point week at a lower price. But, regardless you will love Hyatt and you still saved money when compared to developer prices.

 

[Carmel85]

Just made an offer on a Hyatt timeshare in San Antonio for 10K. It's a 1400 point, 2BR unit. Seller has agreed to pay closing costs and transfer fee. I know Hyatt sells these "new" for around 18K. Any idea what my chances are of having this go through?

You should be fine!!! Welcome to Hyatt and I hope you enjoy many nice vacations to come!

 

[SouthlakeLion]

Thanks to both of you!

You don't know how close I was to buying from the developer a few months ago. After reading this board, I decided to be patient and wait for a deal to come along. The asking price was actually 9K (firm). I told the seller I'd give them 10K if they paid the closing costs and transfer fee (about $1,000 total). The reason I did was I wanted to increase my chances that Hyatt would not buy it back.

 

[Phill12]

It will pass ROFR, it is a silver season and it seems that most ROFR are exercised on 2000 and 2200 point weeks. Also, based on price it will pass without any problem - I am assuming that you got the unit, resort and week that you wanted. If you are purchasing to use with other Hyatts you could have saved some money and purchased a 1400 point week at a lower price. But, regardless you will love Hyatt and you still saved money when compared to developer prices.

Sorry this is a little off topic but I have a question! When a resort has ROFR are they bumping your buyer and buying the unit from you at that price or just blocking the sale!

I read a post about a resort having this right and after the sale was stopped because of ROFR the owner stated she now had to start over trying to sell her unit!


I have been around timesharing since 1983 but never had to deal with ROFR so this makes no sense to me!

 

[SouthlakeLion]

My understanding of ROFR....

(at least in this case) is that Hyatt will actually buy the unit back from the seller, and I would get my earnest money back.

 

[johnmfaeth]

By definition, ROFR means that the ROFR holder (in this case Hyatt) buys it instead of the buyer at the contracted price.

The acronym stands for Right of First Refusal. So by not refusing to purchase at the contracted price, they are by definition, purchasing at that price.

No developer ever has the right to reject someones right to sell, only to buy at that price. It is the personal or deeded property of the owner and that is a fundamental right under our system of English law.

 

[robertr55]

Kal's site at http://www.bywindkal.com/Hyatt/HVCRules.html
has the "official rules":
Developer Right of First Refusal before Resale. Before Purchaser may resell the Purchaser’s Unit Week to a third party and for so long as the Developer holds Unit Weeks for sale at the Condominium, Purchaser is required to offer the Purchaser’s Unit Week to Developer upon the same terms and conditions, including financing, as is offered by or to the third party. Accordingly, Purchaser must notify Developer in writing no less than 30 days in advance of the proposed closing date of the Purchaser’s intent to sell and must include a copy of the proposed transaction reduced to writing in all respects. Upon receipt of such written notice, Developer shall determine prior to the proposed closing date whether it wishes to exercise its right of first refusal. If Developer elects to exercise its right of first refusal, Developer shall notify Purchaser in writing of such election, and the purchase by Developer shall be closed on or before the proposed closing date. If Developer fails to notify Purchaser of its election to exercise its right of first refusal prior to the proposed closing date, Purchaser may proceed to close the transaction with the third party upon the original terms and conditions offered by or to the third party. Developer’s right of first refusal is a covenant that runs with the land and shall always be a requirement binding on any successor in title to Purchaser.