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ROFR exercised on gift transfer

TamaraQT

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they know who the owners are. They could just reach out a make offers.
This has always been something I questioned and never understood. When they notice the owner is trying to "sell", "transfer" or "gift" their unit, why doesn't the developer/company reach out and make an offer to the owner. Especially when it's someone who has owned for over 10 years. I think it's the least they can do when it comes to an owner that successfully satisfied their mortgage, and pays their maintenance fees regularly. They received MORE than enough in taxes and fees from the owner over the years. Offer to take it back with a minimum offer of at least one year of maintenance fee reimbursement. This way the seller/owner gets something "more" than they would if they were to give it away or sell for a $1. The developer can find another unsuspecting soul(Non-Tug Member) to sit in a presentation and sell it to. Why doesn't the developer just take it off their hands and offer them "something" for being a good customer for the time they owned it?
 

Pathways

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This has always been something I questioned and never understood. When they notice the owner is trying to "sell", "transfer" or "gift" their unit, why doesn't the developer/company reach out and make an offer to the owner. Especially when it's someone who has owned for over 10 years. I think it's the least they can do when it comes to an owner that successfully satisfied their mortgage, and pays their maintenance fees regularly. They received MORE than enough in taxes and fees from the owner over the years. Offer to take it back with a minimum offer of at least one year of maintenance fee reimbursement. This way the seller/owner gets something "more" than they would if they were to give it away or sell for a $1. The developer can find another unsuspecting soul(Non-Tug Member) to sit in a presentation and sell it to. Why doesn't the developer just take it off their hands and offer them "something" for being a good customer for the time they owned it?

ROFR is actually the ultimate scam. It has a dark past in some condo type real estate, where they used it to keep out 'undesirables'.

In timeshares I really don't see any other reason for it to exist except for a developer to play the game with a 'stacked deck of cards' since only the developer knows all the numbers. I'm struggling to think of another business where a sale between two parties can be blindly hijacked. And for the sole purpose of taking the ownership and reselling for a higher profit than the seller is making.

Even at a 40% commission, at least Marriott used to be somewhat open about the pricing when they helped an owner make a sale. There really should be a law requiring the entity with ROFR to openly declare their price offer.
 

win555

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Two wrongs now make a right?

I disagree (but disagreement does not mean dislike). Rules are set up by developers to screw buyers and sellers. Blind adherence to such rules isn't "right" to me. Developer is going to do what's in their best interest and I'm going to do what is in my best interest. They can sue in court if they think what the seller is doing is illegal.

Many employers used to ask your salary in a job interview so they could screw new employees by paying them less. Interviewers frequently inflated their salary number. At that time, you could say what these prospective employees were doing was fraud or wrong. But eventually this practice of asking for your current salary became illegal. There are lots of practices that are legal at one time but later outlawed. I don't see a reason to conform to a rule that is clearly designed to screw me.

PS: I'm not a seller but a prospective Hyatt buyer.
 
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win555

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ROFR is actually the ultimate scam. It has a dark past in some condo type real estate, where they used it to keep out 'undesirables'.

In timeshares I really don't see any other reason for it to exist except for a developer to play the game with a 'stacked deck of cards' since only the developer knows all the numbers. I'm struggling to think of another business where a sale between two parties can be blindly hijacked. And for the sole purpose of taking the ownership and reselling for a higher profit than the seller is making.

Even at a 40% commission, at least Marriott used to be somewhat open about the pricing when they helped an owner make a sale. There really should be a law requiring the entity with ROFR to openly declare their price offer.
I think it's kind of a discrimination against lower income people to not allow them to buy a Hyatt week at the market rate. The market rate for many of the Hyatt weeks (Gold and below) is 90% less than the prices from Hyatt.

Hyatt is preventing people cannot afford retail prices to not buy into the Hyatt system by using the ROFR system. Hope this discriminatory system gets outlawed some day.
 

Tucsonadventurer

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I think it's kind of a discrimination against lower income people to not allow them to buy a Hyatt week at the market rate. The market rate for many of the Hyatt weeks (Gold and below) is 90% less than the prices from Hyatt.

Hyatt is preventing people cannot afford retail prices to not buy into the Hyatt system by using the ROFR system. Hope this discriminatory system gets outlawed some day.
It is about finding that sweet spot. We have payed as low as 3,000 but it depends on Hyatt's inventory at the time. There are still good deals that go through but a diamond week for 1,000 will be bougt up. Don't give up
 

AJCts411

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I think it's kind of a discrimination against lower income people to not allow them to buy a Hyatt week at the market rate. The market rate for many of the Hyatt weeks (Gold and below) is 90% less than the prices from Hyatt.

Hyatt is preventing people cannot afford retail prices to not buy into the Hyatt system by using the ROFR system. Hope this discriminatory system gets outlawed some day.

Then...we should also ban, make illegal those UN-affordable flights, steaks and luxury cars.
 

win555

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Then...we should also ban, make illegal those UN-affordable flights, steaks and luxury cars.

Are these available at 90% off to one set of people and a certain demographic prevented from purchasing?
 

geist1223

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I think it's kind of a discrimination against lower income people to not allow them to buy a Hyatt week at the market rate. The market rate for many of the Hyatt weeks (Gold and below) is 90% less than the prices from Hyatt.

Hyatt is preventing people cannot afford retail prices to not buy into the Hyatt system by using the ROFR system. Hope this discriminatory system gets outlawed some day.


Oh no has the Cancel culture made it to TUG?
 

pacman777

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I think it's kind of a discrimination against lower income people to not allow them to buy a Hyatt week at the market rate. The market rate for many of the Hyatt weeks (Gold and below) is 90% less than the prices from Hyatt.

Hyatt is preventing people cannot afford retail prices to not buy into the Hyatt system by using the ROFR system. Hope this discriminatory system gets outlawed some day.

this sounds like it would be a good class action lawsuit against Hyatt for its ROFR practices if you present it that way. Any attorney bored and want to take it on?
 

Sapper

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this sounds like it would be a good class action lawsuit against Hyatt for its ROFR practices if you present it that way. Any attorney bored and want to take it on?

If Hyatt were discriminating against a specific race, religion, creed, disability, etc... they would have the pants sued off them. However, being “low income” is not a protected class. There are some social safety nets in place for low income folks, but owning a timeshare is a want not a need like food, shelter, or medicine.
 

geist1223

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this sounds like it would be a good class action lawsuit against Hyatt for its ROFR practices if you present it that way. Any attorney bored and want to take it on?

:cheer::banana::bawl::wave:
 

bdh

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this sounds like it would be a good class action lawsuit against Hyatt for its ROFR practices if you present it that way. Any attorney bored and want to take it on?

The HRC TS Association rules were written by the developer to favor the developer - Attorneys have already looked at it and unfortunately, ROFR is legal.
 

Mongoose

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I haven't read the legalese, but I don't think there is a provision to gift it.

I don't think the seller has to go through with the sale to Hyatt though.
I "purchased" a week via a "Gift" back in March. The transfer fee is also less. I assume the owner can decline to honor the ROFR and keep it to sell if there is any value. Wonder if it was a Platinum or Diamond?
 

Kal

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Who knows? This may have a method of baiting Hyatt to take the unit. Owner thereby avoids endless Maintenance Fees forever.
 

Sandy VDH

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It makes good business decision for the developer to purchase back wanted inventory at reduced prices. It is probably significantly cheaper to buy it via ROFR then to develop new inventory from scratch. It also keeps up resale prices and lessens to collapse of the house of cards.
 

BJRSanDiego

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There is no contract if the seller decides not to sell unless the contract has a penalty or some other clause in it stating as such.

All of the sales contracts I use as seller state that if seller backs out for any reason, they are responsible for all closing costs and nothing more. Most of the timeshares I buy have similar language. I suppose you could add in clauses to state that there is a penalty for backing out, but I haven't seen one in any of my purchases.

-ryan
I bought a Marriott timeshare through Redweek. I wrote up the offer with a lot of detail including who is responsible for the maintenance fee and taxes for which year. I was very specific. Based on their acceptance of my offer, we made a contract that was essentially a "copy/paste" of my offer. Apparently neither the seller's agent nor the seller digested that because when it went to closing, the seller's agent and seller thought that I should pay the MF for the entire year prior to my first use year. At one point, the seller made signs that they were backing out. That is when I realized that I hadn't addressed the cancellation issue with the offer letter to seller. So, short of suing for Specific Performance, there wasn't much that I could do. But in the end, the seller's agent talked them out of walking away.

So, I suspect that if the TS company exercises the ROFR that there isn't much that they can do if the "seller" or giftor back out.
 
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