Welk Resorts Claims They Have [Right of First Refusal] on Owner Sales- True/False?

[tomt73]

I'd appreciate hearing from any Welk Resorts owners as to whether their contracts have a right-of-first-refusal clause in them that allows Welk to pre-empt any offers for their points. We recently sat through a presentation at Northstar Resort. They are building a place in Breckenridge that would be attractive to us, but not, of course, at the prices they want. I see numerous offerings on Red Week for Welk points at attractive prices. When I showed the sales "closer" the offerings, he dismissed them by saying, "Those are not valid because we have a right of first refusal. Any money that goes to those folks would not be your money, adn you would not get the points."

 

[tombanjo]

So if you offered twelve billion dollars, Welk would match that offer and take the property ? No, there are offers that ROFR will take, and then there are ones that pass. If your offer gets taken, keep making offers until you get what you want. They can't buy everything. All it means is that Welk has the right to step in and take the property at the price you negotiate if they want. You lose nothing but time. If search TUG you will find other ROFR posts about Welk. Since the salesperson commission comes out of the sales price, they cannot pay ROFR what a developer will sell for, so you can at absolute worst case, buy without paying the cost in salesperson commissions.

 

[tomt73]

So if you offered twelve billion dollars, Welk would match that offer and take the property ? No, there are offers that ROFR will take, and then there are ones that pass. If your offer gets taken, keep making offers until you get what you want. They can't buy everything. All it means is that Welk has the right to step in and take the property at the price you negotiate if they want. You lose nothing but time. If search TUG you will find other ROFR posts about Welk. Since the salesperson commission comes out of the sales price, they cannot pay ROFR what a developer will sell for, so you can at absolute worst case, buy without paying the cost in salesperson commissions.

Thanks for your comments!

 

[Shankilicious]

They have right of first refusal. So, like tombanjo said, the holder of the deeded points youre buying has to give Welk the chance to buy the points back.
But I have been assured by multiple owners services reps and two supervisors that you can buy Welk resale points and use those points at all Welk resorts and the collection resorts except for Disney.

 

[Shankilicious]

6. Disclose any right of first refusal or other restraint on the transfer of all or any portion
of a time-share interest.
Section 2.18 of the Declaration contains a right of first refusal in favor of the Developer. If a
member receives an offer to purchase his time-share interest, the Developer must be given the
right to match the offer before the sale can close.
Copied from the contract.

 

[nuwermj]

In case this thread pops up in a future search ... The OP and the replies are about platinum points, but there are deeds in the Villas at Escondido in which Welk does not have the ROFR.

 

[Guitarmom]

It is true that Welk has ROFR on resale transactions. Having said that, I've successfully purchased three different contracts on the resale market: a fixed-week Resort Villa, a two-bedroom lock-off Villas on the Green, and Platinum Points. Welk did not exercise its Right of First Refusal on any of them.

Here is my best advice: go to www.CalResorts.com and see what prices they're offering on Platinum Points. Brent Jex (who is semi-retired and has handed the business over to daughter Holly) once told me that he has a good sense of what triggers Welk's ROFR. He'd only had ROFR exercised on one of his deals, and that was when a seller insisted upon selling his contract below Brent's advised price. Bingo: ROFR. In other words, Welk has an unpublished threshold, and if you try to buy/sell below that threshold, they'll buy the contract themselves. It's not a bad thing for a seller; they get their money whether its from a private buyer or from Welk. It can be a heartbreak for a buyer who loses a good deal.

And I gather, from your post, that ROFR is a fabulous tool for the Welk sales staff. I can assure you, however, that there are successful resale transactions at ten cents on the dollar from what Welk wants you to pay.

My observation is that Calresorts.com's prices tend to be quite a bit more affordable than Red Week, so you just might find a package you like there.

 

[tomt73]

Guitarmom:

Great information. Thanks!

 

[nuwermj]

Brent Jex (who is semi-retired and has handed the business over to daughter Holly) once told me that he has a good sense of what triggers Welk's ROFR.

Courtney Jex can be found here: Weeks4Sale.com

 

[tomt73]

Guitarmom: Thanks!