Right of First Refusal on a Timeshare Sale: What Does It Mean? December 30, 2010
Posted by John Stephens in : General, Timeshare Resale , add a commentA brief article on the community journal page of the Wall Street Journal website got me thinking about something that we don’t publicly talk about much in timeshare resale – right of first refusal (ROFR).
Essentially, a right of first refusal means the developer has the chance to buy back the week from the seller once a seller and buyer have agreed on a sale price. Once a seller and buyer have an agreement and the deal goes to the processing stage involving the developer, the developer can step in and buy the week back from the owner, for instance, if they think the sale price is too low. This allows the developer to try and maintain a certain price level for the week in order to keep the overall market value high at the resort. Also – if inventory at the resort is limited, the developer can re-sell the week through their sales team and make a profit.
Keep in mind that not all developers offer this option and in the article, the writer was talking about Hyatt timeshare. In the piece, the writer states that “Hyatt ownership transfers require a right of first refusal process in which written terms of the sale must be provided to the developer giving the developer the opportunity to replace the buyer ‘at the same terms’ if they feel the sales price is too low.” This can also be the case with Marriott timeshare and other brand names.
The reason I mention this is because of the frustration ROFR can cause both seller and, especially, for the buyer involved since the process can take weeks before the developer steps in. A developer ROFR, after all the time and effort put into the process by the seller and buyer, can lead to the buyer being out of the picture altogether and needing to start a new search from scratch. For the seller, they usually get their money one way or the other, so it’s not as significant an issue for them.
However, in fairness, a seller should contact their resort to find out if they have a ROFR policy and how it works, since there can be other issues involved such as Hyatt’s Gold Passport privileges not transferring on the resale market. And, if possible, see if the resort will give you a price range for your week at the point they are likely to enter the process. If you have an idea of which prices they are likely to buy back the week, this can help you in your negotiations and perhaps give the buyer a better idea of what they need to pay in order to get the week.
For more information about Hyatt timeshare available on the Buyatimeshare.com website, click here.
2010 VPR Fantasy Football League Ends in Controversy December 30, 2010
Posted by JConnolly in : Timeshare Resource , add a commentSome call it luck, some call it fate. How you see it depends on your final ranking. We’re talking about the inaugural season of VPR fantasy football, which came to an abrupt end on a frozen Tuesday evening this week.
This season was marred by vetoed trades, teams that quit and pacts between teams that make reality shows look like kindergarten.
“How can a team that goes 11-4 during the season be beat in the first round by 3 points from a team that struggled to make the playoffs?” asks Connolly, captain of team Stinkfinger.
The final matchup between teams Too Easy and Kibbles & Vicks came down to the final contest, which saw the first NFL game played on a Tuesday since 1946. It was a lackluster performance by both teams, but in the end team Kibbles & Vicks pulled out the victory.
Team captain Haegle was unavailable for comment and has not been seen since the victory. Rumors of his whereabouts vary from celebrating his victory in the Bahamas to being stuck in a snowstorm in New Hampshire. Some even claim he was duct taped to a tree while skiing in Vermont and we may never see him again.
While we may never know what really happened this year, the VPR Fantasy Football League will continue in 2011. Thanks to all who participated and congrats to you, Mr. Haegle, wherever you might be.