ROFR

[twilkinson]

I got such great feedback on my first question I will throw another out here.

My understanding is that the deed may have an ROFR clause which will allow the resort owner to buy the deed at the sale price.

Here is the question: if the sale is being managed by an escrow company for around $300 to $400, will all of the escrow payment be forfieted if the resort owner swoops in and uses ROFR to buy the deed? Or perhaps, the ROFR is evaluated / passed prior to escrow opening?

Thanks

 

[justinbrenda]

If the developer exercises its ROFR, all money will have to be returned by the escrow company.

 

[Bill4728]

If the developer exercises its ROFR, all money will have to be returned by the escrow company.

This is what is suppose to happen.

Make sure in your agreement to buy a TS that you say " All funds to be returned to buyer if the developer exercises its ROFR"

Also, the closing company is suppose to wait till ROFR is passed, before doing the paperwork.

 

[rickandcindy23]

I got such great feedback on my first question I will throw another out here.

My understanding is that the deed may have an ROFR clause which will allow the resort owner to buy the deed at the sale price.

Here is the question: if the sale is being managed by an escrow company for around $300 to $400, will all of the escrow payment be forfieted if the resort owner swoops in and uses ROFR to buy the deed? Or perhaps, the ROFR is evaluated / passed prior to escrow opening?

Thanks

What are you trying to buy? Consider that some companies don't really have ROFR, but the seller has nothing to lose by allowing that company to steal the ownership from you. Case in point: PAHIO. Most properties have no ROFR with PAHIO, but PAHIO pretends they have it, so the buyer is hurt in the process. Sad but true.

 

[Dave H]

This is what is suppose to happen.

Make sure in your agreement to buy a TS that you say " All funds to be returned to buyer if the developer exercises its ROFR"

Also, the closing company is suppose to wait till ROFR is passed, before doing the paperwork.

I agree 100%. As A title company, once we get the deal and if the resort has ROFR, we submit to them and wait. I sure don;t want to go through all the paperwork to find out they want the week and then I don;t get paid for my work.

Also, the comment about escrow is right, make sure it says if ROFR is exercised you get your $$ back, most will anyways, but it makes it easier on the closing company to refund the funds.

Dave

 

[timeos2]

The stench of ROFR is sickening

I agree 100%. As A title company, once we get the deal and if the resort has ROFR, we submit to them and wait. I sure don;t want to go through all the paperwork to find out they want the week and then I don;t get paid for my work.

Also, the comment about escrow is right, make sure it says if ROFR is exercised you get your $$ back, most will anyways, but it makes it easier on the closing company to refund the funds.

Dave

And what do you do to verify that the resort actually has ROFR? As Cindy points out and many are aware of with the Wastegate resorts many older weeks had no right to ROFR, yet they try to claim they do. Are you correctly on the side of sellers to prevent illegal interference with their resale?