ROFR- Marriott Complains about 2nd offer

[johnmfaeth]

Marriott's ROFR cutoff for it's better resorts in Florida and Hawaii has historically been in the 51-52% range. That figure ties in perfectly with the 30K cutoff indicated earlier in the thread. 60% is fine for estimating, but better to go for the extra savings. It doesn't cost the buyer anything when ROFR is exercised, except some time (and expectation management to avoid frustration).

Now that cutoff moves constantly based upon their sales rate and other factors, but has largely been accurate for the past two years.

Seems to me that the best bang these days is acheived by buying a St. Thomas (STT) unit on the cheap and trading. STT has no ROFR and they are finally starting to appear on the resale market. Bottom picking there may be the best bet to get the Marriott system for less.

 

[TSResalez]

For what its worth, here is the opinion of an old (59) retired lawyer:

When a buyer and seller agree on a price and enter an agreement there is a binding contract. Marriott then has the right to exercise its option to purchase the TS at the price agreed upon by the buyer and seller. If Marriott exercises its ROFR then it has the absolute right to demand that the seller transfer the TS to Marriott at the price agreed upon in the contract between buyer and seller. The buyer and seller cannot try to circumvent Marriott’s option to purchase by submitting new offers, unless Marriott agrees to allow it.

I agree with Perry, Marriott’s ROFR helps support the resale price of its units and the ROFR is a good thing for those of us that purchased directly from Marriott.

Nonetheless, Marriott is under no obligation to use its ROFR to purchase any TS. It can do so, or not do so, whenever it likes and for whatever reason is chooses. We cannot count on Marriott to support the price of TSs if the market falls in a recession.

So as a seller...are you technically defaulting on the contract if you do not sign marriott's transfer paperwork after having rofr exercised?

 

[Dave M]

Yes, you would be in default and could be subject to a civil action. That's because the way Marriott's ROFR is worded, Marriott isn't making an offer. They are exercising their option to purchase. Once Marriott has exercised that option, the seller is obligated to sell, unless Marriott is willing to entertain a higher offer from the proposed third-party buyer, as they sometimes were until recently.

 

[AwayWeGo]

R. O. F. R. = R. O. F. L. (Still Does.)

Marriott’s ROFR helps support the resale price of its units and the ROFR is a good thing for those of us that purchased directly from Marriott.

Granted I'm not the sharpest knife in the dishwasher, & it took me a while to figure out resale timeshare ROFR, but I still can't see how frustrating lowball resale purchases by bargain-hunting bottom feeders is of any practical value to current timeshare owners who paid full freight.

ROFR doesn't jack up the price anybody pays.

Likewise ROFR doesn't boost the price any reseller receives.

ROFR just lets the timeshare company swoop in & snag back the timeshare for the lowball price that the bargain-hunting bottom feeder was getting ready to pay.

The only benefit to current full-freight owners I can semi-imagine is that it leaves them secure in the knowledge that nobody else can buy in cheap -- & to the extent that amounts to any kind of advantage, it's intangible all the way.

All ROFR does for current owners is prevent potential future owners from bragging about how little they paid for what the full-freight owners bought for big bux. In actual dollars & cents in current owners' pockets, that means nothing.

ROFR is a slick advantage -- for the timeshare company only.

ROFR means nothing of practical value to current owners. Low-price resales still go through at low prices, but the bargain timeshares go only to the timeshare company that's buying'm back. Net amount to the reseller is the same, mox nix.

ROFR blocks would-be bargain hunters.

To everybody except the timeshare company, ROFR = ROFL.

I do not enjoy rekindling this topic of discussion after it was so recently & so thoroughly flogged to pieces right here on TUG-BBS. But, shux, support of resale prices via ROFR is a complete illusion. Bargain resales still come along just the same with or without ROFR. But with ROFR, only the timeshare company gets to snap up the bargains. That helps nobody but the timeshare company.

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