ROFR.net Passed/Failed Explanation

[dioxide45]

This question gets emailed to me from time to time regarding the ROFR database at rofr.net. There seems to be some confusion around the result column in the database and what Passed/Failed really means. I've had about a dozen emails over the years seeking clarification but have had several in the past few months. Is there a better way to word this without having to get into a big explanation on the website which many people won't read. I would like for the column to be as self explanatory as possible.

Current column;

Passed=The developer waived their ROFR and the original transaction can proceed.
Failed=The developer exercised their ROFR and are buying back the week.

 

[bizaro86]

Seems straightforward to me...

Could change it to "passed" and "exercised"?

 

[dioxide45]

Seems straightforward to me...

Could change it to "passed" and "exercised"?

I was also thinking of "Waived" and "Exercised".

 

[Pamplemousse]

This question gets emailed to me from time to time regarding the ROFR database at rofr.net. There seems to be some confusion around the result column in the database and what Passed/Failed really means. I've had about a dozen emails over the years seeking clarification but have had several in the past few months. Is there a better way to word this without having to get into a big explanation on the website which many people won't read. I would like for the column to be as self explanatory as possible.

Current column;
View attachment 105253

Passed=The developer waived their ROFR and the original transaction can proceed.
Failed=The developer exercised their ROFR and are buying back the week.

A think that 2 line explanation/key/legend you included here explains it.

 

[BigDawgTUG]

Although I think the "pass" and "fail" nomenclature with the provided legend is clear, the two words really don't ever come into play in the "real world" in the case of rights of first refusal and that is why I think there has been some confusion. The holder of the ROFR, in this case MVC or its affiliates, may only (i) exercise the ROFR within the prescribed time period, (ii) affirmatively waive its right to do so with that time period or (iii) let it lapse by doing nothing during that time period. For purposes of rofr.net, I don't think the last two are meaningfully different. Perhaps the heading could be "Exercised?" and, if so, the user could respond by marking "yes" or "no"?

 

[m61376]

I think what you have, with the explanation offered, is concise and will be understood by the vast majority of viewers. I have learned through organizational volunteer work that no matter how clear you think you are being, there will be people who do it wrong.
I do think that BigDawgTUG's suggestion above will lead to more confusion. People will wonder if "yes" to exercised will mean the buyer got it or Marriott took it.

I guess the only other thing you could do is "Buyer can buy it" or "Marriott took it"- or maybe a color coded chart- Blue= ROFR passed and buyer can complete the purchase and Red= Marriott exercised ROFR and Marriott will buy the unit from the seller.

Since you're the one doing the work and getting bothered by emails, I'd base the decision on making any changes on whether you get asked frequently or infrequently to clarify.

Thanks for doing this! It's a great guide, although buyers should still negotiate their best price, since you never know when something good will slip through. Over the years we've seen many instances of one price failing today but next day or week a lower price for the same unit passing.

 

[rickandcindy23]

I was also thinking of "Waived" and "Exercised".

Do people know the definition of waived, or even exercised? I think passed/failed is easier to understand. We know what waived/ exercised means in the timeshare or realestate world, but how many people would find those words confusing.

 

[jp10558]

I think

m61376​

is right - no matter what you do, there will be some people who basically will only understand something in conversation, so anything less than e-mailing you or maybe someday talking to an LLM/AI won't work. If there's a very large number, then sure, change it to something, and I think "Marriott took it" vs "Buyer could purchase" might be the next best concise option that is a little more hammer like.

 

[davidvel]

I would merge the current terminology with new:
Passed - buyer purchased
Failed - MVC purchased

 

[Ski-Dad]

I believe the ambiguity arises more from the fact that most people do not understand what ROFR is. The terms Passed and Failed are reasonably clear.

For those that do not understand ROFR, the terms Waived and Exercised do not make it any clearer.

 

[dioxide45]

I believe the ambiguity arises more from the fact that most people do not understand what ROFR is. The terms Passed and Failed are reasonably clear.

For those that do not understand ROFR, the terms Waived and Exercised do not make it any clearer.

I would like to think people going to ROFR.net understand what ROFR is. They are certainly familiar with the term if they know about the site.

 

[GrayFal]

I would merge the current terminology with new:
Passed - buyer purchased
Failed - MVC purchased

This!

 

[dioxide45]

I would merge the current terminology with new:
Passed - buyer purchased
Failed - MVC purchased

I can't necessarily use MVC since the database is also utilized for DVC and HGVC transactions. I'm also concerned about too much text in that field causing it to flow over two multiple lines.

 

[WaikikiFirst]

P/F seems obvious but how bout "Yippee" & "Damnit"

 

[andre10056]

As far as I understand the ROFR system, you have a buyer who wants to pay some amount of dollars for your timeshare. But you can't immediately thereafter sell the timeshare to that buyer. You first need to inform the "developer" about the details of that transaction so he/she/it can either allow the transaction to proceed or choose to him/her self buy at the same terms and conditions. To me, then, either alternative is a "pass". Either alternative is a "yippee".

I don't care to whom I sell it as long as I sell it.

So, if my understanding is correct, why is selling to an individual a "pass" but selling to the developer a "fail"?

Seems to me that there could simply be a column "Ultimate Purchaser" with two different options: Individual or Developer.

And why isn't Hyatt one of the listed resort families?

 

[davidvel]

As far as I understand the ROFR system, you have a buyer who wants to pay some amount of dollars for your timeshare. But you can't immediately thereafter sell the timeshare to that buyer. You first need to inform the "developer" about the details of that transaction so he/she/it can either allow the transaction to proceed or choose to him/her self buy at the same terms and conditions. To me, then, either alternative is a "pass". Either alternative is a "yippee".

I don't care to whom I sell it as long as I sell it.

So, if my understanding is correct, why is selling to an individual a "pass" but selling to the developer a "fail"?

Seems to me that there could simply be a column "Ultimate Purchaser" with two different options: Individual or Developer.

And why isn't Hyatt one of the listed resort families?

The purpose of the site is not really for sellers. It is to help buyers understand what is being gobbled up by developer at a particular price.

 

[andre10056]

The purpose of the site is not really for sellers. It is to help buyers understand what is being gobbled up by developer at a particular price.

It seems to me that the site could be incredibly valuable for both buyers and sellers, but at least now I understand why "Pass" or "Fail" or "Yippee" or "Dammit" ("Damnit?") may apply. .

 

[rickandcindy23]

I like Yippee! and Darn!

 

[Ski-Dad]

I would like to think people going to ROFR.net understand what ROFR is. They are certainly familiar with the term if they know about the site.

A valid point

 

[dioxide45]

And why isn't Hyatt one of the listed resort families?

No one has provided me with the necessary details to add Hyatt to the database. The problem with Hyatt is also that most resorts were sold as fixed week and fixed unit. So it might require a lot of data to be able to capture all of that based on how the database currently works. All the fields are predefined to prevent people from entering garbage data. Completing one field determines what can be selected in the next field.

 

[dioxide45]

I like Yippee! and Darn!

But for the seller, they don't care. It could be Yippee either way.

 

[jwalk03]

Pass/Fail seems perfectly clear to me.

I agree with the sentiment that the issue is that most people do not understand how ROFR works. Frequently in the owner facebook groups people with post with you can't buy/sell your week privately because of ROFR having no clue how it really works.

I (and others) frequently point people to the site to get an idea of pricing, so even the average person visiting the site may not truly understand ROFR.

 

[1Kflyerguy]

Personally, I like waived and exercised, but I agree there is probably no single solution that everyone will immediately understand.

As for the sellers, I agree it should not matter to them, but I have seen plenty of sellers on FB or elsewhere who are concerned that the developer might exercise ROFR on their sale.

 

[Huskerpaul]

I know DISboards uses Passed/Taken for thier DVC ROFR results reporting.