Marriott right of first refusal

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Original Message:

Re: Re: Marriott right of first refusal (by KC):

jamese602 wrote:
What does passed or failed mean on Redweek rofr

"Passing" ROFR (right of first refusal) simply means that the developer (Marriott, in this case) agrees to let a sale take place between seller and buyer at a price agreed to between buyer and seller, with Marriott offering no objection.

"Failing" ROFR would mean that Marriott refuses (as is their right) to let the sale proceed between seller and buyer at a price Marriot perceives as too low, with Marriott then opting to buy that week themselves from the seller at that same price. For the seller, there is no really difference in money ultimately received for the sale. For the buyer however, if the agreed price "fails" ROFR, then the buyer is out of luck and essentially gets "aced out" of the transaction entirely.

It is worth pointing out that ROFR exists only if clearly identified and stated in the resort / developer original organizing documents. If the ROFR option is not specifically provided in those underlying legal documents, ROFR does not exist and therefore cannot be exercised. Some chains have ROFR, some don't. Independent timeshare properties (i.e., those not associated with any "chain) do not have any such ROFR provisions in their underlying legal (CC&R) documents.