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Right of First Refusal

pinetree1

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Does anyone have experience with ROFR? Could sellers do not go through the sale process even though the sale was ROFED? What are the consequences?

Our friend tried to sale a desirable Hyatt timeshare to his co-worker. The week was ROFRed. Is there a way for my friend not going through the sale?

I posted at Hyatt board and did not get any response.
 
In the case of ROFR, MVW gets inserted as the buyer in the transaction. Just like any timeshare contract, someone can back out. Would MVW take any action to force the sale? Probably not, it isn't worth their time, effort or cost.
 
I backed out of giving back a week that got ROFR'd by MVC. I Just informed them that I did not want to proceed with the transaction and that was it.
 
So, my friend in theory, can inform Hyatt that he does not want to move forward with the sale; wait a few months, raise price a little, then try to sale to his co-worker again. Will Hyatt note the week and block any future sale to the same party?
 
So, my friend in theory, can inform Hyatt that he does not want to move forward with the sale; wait a few months, raise price a little, then try to sale to his co-worker again. Will Hyatt note the week and block any future sale to the same party?
In theory he could cancel and try again later. Hyatt could force the sale but are unlikely to pursue it. I've never seen a company refuse to sell based on previous resale purchases, it would be foolish of them to do so. I've also never seen a credible situation where someone were looking retail then submitted a contract for resale and was taken ROFR as a punishment but it may have happened and we wouldn't know. I've seen this threatened by sales people a number of times though.
 
In theory he could cancel and try again later. Hyatt could force the sale but are unlikely to pursue it. I've never seen a company refuse to sell based on previous resale purchases, it would be foolish of them to do so. I've also never seen a credible situation where someone were looking retail then submitted a contract for resale and was taken ROFR as a punishment but it may have happened and we wouldn't know. I've seen this threatened by sales people a number of times though.
I believe I have seen this happen. I was the seller. Marriott became the buyer.

It involved a 1bd OF Kauai Beach Club unit. This was about four years ago, when these units sold for about $5K resale. My buyer had recently rescinded a developer purchase at KBC and was working with a broker to purchase resale.

My unit was listed for ~$6K. The broker representing the buyer and I created a contract to sell the unit for $8,500, baking the broker's commission into the sales price. Marriott ROFR'd the $8,500 purchase agreement when units identical to mine were selling for ~$5K.

The buyer's broker thought it was punishment. Obviously we don't really know, but Marriott's ROFR was irrational unless they had a secondary purpose.
 
So, my friend in theory, can inform Hyatt that he does not want to move forward with the sale; wait a few months, raise price a little, then try to sale to his co-worker again. Will Hyatt note the week and block any future sale to the same party?
He can relist immediately, at least that's how it was with mine. They specifically told me that.

The difference is I was expecting ROFR. There was a disagreement because the amount of the closing costs were not specifically laid out in the agreement and I was originally paying as the seller. I relisted and changed to have the buyer pay closing costs. The ROFRd again and saved me $500. I tried to negotiate with them to avoid all this, but they said I'd have to decline to sell and relist under new terms. So I did.
 
Does anyone have experience with ROFR? Could sellers do not go through the sale process even though the sale was ROFED? What are the consequences?

Our friend tried to sale a desirable Hyatt timeshare to his co-worker. The week was ROFRed. Is there a way for my friend not going through the sale?

I posted at Hyatt board and did not get any response.
If your friend still wanted to go through with the sale why don't they just figure out what price will clear ROFR and then refund some money later after the transaction goes through?
 
If your friend still wanted to go through with the sale why don't they just figure out what price will clear ROFR and then refund some money later after the transaction goes through?
Not that anything would come of it, but that's probably fraud.
 
Not that anything would come of it, but that's probably fraud.
It’s illegal, and All states I know of
Correct, and if MVC finds out because one side tells MVC despite their subterfuge, and if MVC decides to sue, and if MVC is able to prove the payment was related to the sale and there was intent to defraud, then buyer and seller would face a fraud judgment.
 
I went through an exchange of timeshares with another tugger. We submitted ROFR to MVC truthfully stating we were swapping timeshares (My HGVC for his MVC). MVC sent back paperwork saying I had to place a dollar amount associated with unit. So I just put what the unit sold for to original owner. Of course It was way more than resale so passed ROFR.

Just thinking, amongst close friends or relatives, couldn't we indicate we are exchanging this family heirloom (for example) for this timeshare. ROFR will be rejected due to not having a specific dollar amount. Then ROFR will ask to attach a dollar amount to item. In my mind that item is worth $25k. Put that as a dollar amount then resubmit. Good work around?
 
I went through an exchange of timeshares with another tugger. We submitted ROFR to MVC truthfully stating we were swapping timeshares (My HGVC for his MVC). MVC sent back paperwork saying I had to place a dollar amount associated with unit. So I just put what the unit sold for to original owner. Of course It was way more than resale so passed ROFR.

Just thinking, amongst close friends or relatives, couldn't we indicate we are exchanging this family heirloom (for example) for this timeshare. ROFR will be rejected due to not having a specific dollar amount. Then ROFR will ask to attach a dollar amount to item. In my mind that item is worth $25k. Put that as a dollar amount then resubmit. Good work around?
I think in that case it would be the fair market value of the item, not your inflated "what it's worth to me". For your example where you swapped, you have documentation of the market value with the sales papers.

ETA: I'll admit this is a fun exercise.
 
I went through an exchange of timeshares with another tugger. We submitted ROFR to MVC truthfully stating we were swapping timeshares (My HGVC for his MVC). MVC sent back paperwork saying I had to place a dollar amount associated with unit. So I just put what the unit sold for to original owner. Of course It was way more than resale so passed ROFR.

Just thinking, amongst close friends or relatives, couldn't we indicate we are exchanging this family heirloom (for example) for this timeshare. ROFR will be rejected due to not having a specific dollar amount. Then ROFR will ask to attach a dollar amount to item. In my mind that item is worth $25k. Put that as a dollar amount then resubmit. Good work around?
I had a direct swap with a La Cabana fixed week for 50 DVC OKW points. The DVC points matched one of my Use Years at the time. DVC came back and insisted we put a $$$ value which we did. Fortunately a real world value of each was the same and that's the value we placed which did pass ROFR, so no need to try to play games. On a side note, staying with DVC, I did sell one of my contracts years ago and they took it under ROFR. However, they tried to add in a clause that I didn't disclose the sales price. I refused and was willing to have the sale fall through. They closed anyway. I had 2 reasons for refusing, one that I'd already disclosed the price and the other simply on principle.
 
My friend's Hyatt Sedona unit is top floor 2000 point for $5000 to his co-worker. He told me the transaction after Hyatt exercised the ROFR. His co-worker really wants the week.
 
I always wondered if there could be a barter/exchange for a TS.. I'll take your timeshare in exchange for my car. How could that not pass ROFR?
 
I always wondered if there could be a barter/exchange for a TS.. I'll take your timeshare in exchange for my car. How could that not pass ROFR?
As another Tugger posted earlier, this has happened, but they still require you to put a dollar value on the MVC timeshare you are relinquishing, for ROFR purposes.

The solution is just to put a high value (like the original developer sales price) which you know they won't pay. Since it's an exchange of properties that dollar value is meaningless to everyone except for MVC.
 
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