ROFR - Request Format

[Helios]

Is there specific information (or a specific format) that needs to be provided in the ROFR letter?

Also, what is the dollar amount that is used to determine if HGVC will excercisse ROFR? Purchase price only...closing cost...maintenance fees...?

 

[DeniseM]

Are you doing a completely private sell with no closing/title company involved?

 

[Helios]

No, I am using the seller's real state agent. The seller is paying the commission.

I am just curious on what the letter should say. My letter was submitted to HGVC on 9/25.

 

[DeniseM]

No, I am am using the seller's real state agent. The seller is paying the commission.

I am just curious on what the letter should say. My letter was submitted to HGVC on 9/25.

Usually, the real estate agent or title company handles that.

 

[Helios]

The real state agent submitted it already. However, I am curious to learn what is the typical information that is included in the letters...

Also, what is the cost that is used by HGVC to determine if they will excersise their ROFR. Obviously the purchase price, but how about the closing cost, or other costs associated with the sale?

 

[DeniseM]

If Hyatt exercises ROFR, they will process the purchase and assume all transfer costs.

Their costs will be different than what you would pay, so your transfer costs are not part of the equation, if they decided to exercise ROFR.

(Although, I have heard of brokers who add the closing costs into to the purchase price to jack up the price and try to get it high enough to pass ROFR.)

 

[Helios]

Thanks Denise.

I believe Kings' Land ROFR response time has to be 15 days. Can anyone confirm this?

 

[SmithOp]

Thanks Denise.

I believe Kings' Land ROFR response time has to be 15 days. Can anyone confirm this?

All HGVC rofr is the same, they can take up to 30 days and often do.

 

[1Kflyerguy]

My owners documents for Kings Land phase 2 list 15 days for notification of ROFR.

Though I have to admit that seems pretty fast.. I don't see where the call out a longer time, or time for other steps...

I don't have any personal experience with this,

But I suppose it possible they will take 15 days to decide, then 15 days to notify you or something..

 

[jlm77]

Mine is well beyond 30 days. I checked with the transfer company after 30. and they ended up resubmitting. I'm assuming it can take upto another 30 days. .

 

[DeniseM]

Mine is well beyond 30 days. I checked with the transfer company after 30. and they ended up resubmitting. I'm assuming it can take upto another 30 days. .

A reputable and experienced broker on TUG posted that if the management company goes past the mandatory timeframe to exercise ROFR without responding, they have lost the option, and cannot exercise ROFR at a later date.

If the title company has documentation that the ROFR was sent, they do not have to resubmit it, just because the Mgmt. company failed to respond.

 

[Helios]

A reputable and experienced broker on TUG posted that if the management company goes past the mandatory timeframe to exercise ROFR without responding, they have lost the option, and cannot exercise ROFR at a later date.

If the title company has documentation that the ROFR was sent, they do not have to resubmit it, just because the Mgmt. company failed to respond.

That is my understanding, basically no news is good news (for the buyer). Assuming there is proper documentation.

 

[Helios]

My owners documents for Kings Land phase 2 list 15 days for notification of ROFR.

Though I have to admit that seems pretty fast.. I don't see where the call out a longer time, or time for other steps...

I don't have any personal experience with this,

But I suppose it possible they will take 15 days to decide, then 15 days to notify you or something..

I think I got the impression that Kings' Land ROFR period was 15 days from one of your post.

I will follow up when I hear about mine. My clock started on 9/25, so we'll see if I hear by 10/4...hopefully that it passed.

 

[Talent312]

If you really want to know what's in a ROFR notice (often called a "waiver request"), you can call HGVC Member Services, ask to speak to someone in the transfer office and ask them to e-mail or fax you a ROFR form to use -- as if you were planning to make another purchase.

The one they gave me (many years ago), asked for the names + addresses of the parties, the sales price, closing agent's name + address, intended closing date and a copy of the sale contract and a closing statement (not sure).

The # of days they have to exercise their option is usually covered in the condominium's covenants and declarations. Your seller may have a copy in a booklet stuffed with about 130 pages of useless gobbledygook a/k/a legalese.
.

Kingsland is a different kettle of fish. It was born under a different sign than most.

 

[Helios]

Kingsland is a different kettle of fish. It was born under a different sign than most.

Not sure I understand what you mean. Are you referring to Kings's Land having a different ROFR period (15 days as you indicated) or the higher point value only second to Grand Waikikian?

 

[Talent312]

Not sure I understand what you mean. Are you referring to Kings's Land having a different ROFR period (15 days as you indicated) or the higher point value only second to Grand Waikian?

Yes, I am.

 

[Helios]

Yes, I am.

It seems like all new resorts will be sold with standard point values...

Does anybody know what's the reason Kings' Land and Grand Waikikian were sold with higher point assignments?

 

[Talent312]

Does anybody know what's the reason Kings' Land and Grand Waikikian were sold with higher point assignments?

At the time they were built, HGVC thought they could cater to well-heeled Japanese tourists willing spend big-bucks. The idea was that the higher-point scales would bring in extra $$ from peep with deep-pockets.
.

 

[jlm77]

@DeniseM, it would be helpful if there are documents for HGVC that state that after 30 days, they forego their right to ROFR. I spoke with the transfer company this morning. They are telling me that they needed to resubmit and now I must wait to see if they exercise ROFR. Essentially the 30 day clock was restarted.

 

[1Kflyerguy]

I think I got the impression that Kings' Land ROFR period was 15 days from one of your post.

I will follow up when I hear about mine. My clock started on 9/25, so we'll see if I hear by 10/4...hopefully that it passed.

Good luck, hope your deal passes....

Please do follow-up, would be good to know if i was reading that section right, or am just full of it....

 

[Talent312]

They are telling me that they needed to resubmit and now I must wait to see if they exercise ROFR. Essentially the 30 day clock was restarted.

Without a written document which acknowledges the ROFR notice one way or the other (waiver or exercise), HGVC may claim they never got it and later try to void the transaction. So the closing agent is being careful by "re" submitting it...

But I wonder if they ever sent it in the 1st place, or if they missed this little detail.
.

 

[Helios]

Good luck, hope your deal passes....

Please do follow-up, would be good to know if i was reading that section right, or am just full of it....

Thanks. I will follow up as steps are completed.

 

[JSparling]

Also, what is the dollar amount that is used to determine if HGVC will excercisse ROFR? Purchase price only...closing cost...maintenance fees...?

They use your total out of pocket as the value they are using to consider if they will exercise ROFR or not. Plus, they require a copy of the contract to see exactly what's going on and who's paying what.

 

[Helios]

They use your total out of pocket as the value they are using to consider if they will exercise ROFR or not. Plus, they require a copy of the contract to see exactly what's going on and who's paying what.

I see you own Starwood, is your unit mandatory?

How would you compare HGVC to Starwood?

 

[JSparling]

Yes, it's mandatory. 81,000 points a year. And I'm trying to sell it.

I never should have bought it. With nothing against the Starwood resorts, the program just doesn't have the flexibility that Hilton does. I see SVO much more as a basic timeshare program where you get a week a year. Sure, you can trade with II into some pretty sweet properties, but you're going to trade your week for a different week. With HGVC you can play your cards right and take the points from your 2BR platinum week and book 3 or 4 weeks in lower seasons and smaller units. Or break it into a bunch of 3-day weekends if you want.

I also like that HGVC lets you borrow points from the next year without having to pay the next years fees. I tried that (booking my 2016 week before I paid my 2016 dues (due 1/1/16) and they wouldn't allow it.

Hilton has a ton of options/resorts, many ways to slice and dice your points, and is really a one-stop shop (unless you venture out into RCI). I found that with SVO and dealing with II it just seems more complicated and more restricted. For example, when I booked my first II trade/week I had to pay an extra fee ($39?) if I wanted to be able to change the reservation at some point in the future. And we're talking about a trip that was 9 or 10 months away. With Hilton you can book whatever you want and as long as you cancel more than 30 days out you get your points back (you lose your $49 fee if you cancel, you don't lose your fee if you just change your dates and/or resort rather than cancel the trip completely).

I'm trying to sell SVO so I can use that money to buy more HGVC points. I really haven't given SVO a shot but have decided that the "fun" of trying a new system isn't worth it and I want all my eggs (and points) in one bucket.