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Thread: HGVC Help

  1. #21
    The acronym 'ROFR' itself is relatively common knowledge as it stands for Right of First Refusal. The acronym 'FROR' stands for First Right of Refusal. The concept means that the Developer will match a resale contract instead of letting the interval be sold to another buyer for a price that is lower than acceptable to the Developer. The original condo documents for the timeshare unit must contain the language for the first right of refusal to be exercised. The waiver of the right of first refusal is recorded with the deed when the sale closes.

    The process begins when a seller and buyer have agreed on a sale price. Once they enter into a contractual agreement the contract is presented to the Developer. The Developer can then step in and become the Buyer of the unit. The Developer must meet the terms of the contract between the original Buyer and Seller. The Buyer's deposit is fully refunded. The Seller's net proceeds remain the same. This practice allows the developer to maintain a certain price level for the units at their resort. The developer can then re-sell the week through their sales team and make a profit on the inventory.



    Not all developers have the right of first refusal (ROFR or FROR) on all of their properties. If you purchase a unit and do not go through the ROFR process the developer could step in at a later time and exercise on the property. This causes frustration with the buyer and seller because the developer is allowed a certain number of days to make a decision and this process keeps the prices stable.

  2. #22
    Are you still looking to purchase a timeshare via the resale market?
    Last edited by philsfan; 12-05-2012 at 03:51 PM. Reason: Remmoved link

  3. #23
    Yes I am lej3156, not really in a hurry though unless a great deal came along .

    How long does a resale normally take to go through?

  4. #24
    Super Moderator chriskre's Avatar
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    Quote Originally Posted by sempreragdolls View Post
    Yes I am lej3156, not really in a hurry though unless a great deal came along .

    How long does a resale normally take to go through?
    I lost my first one to ROFR but my second one went thru.
    It took me about 3 months after the second contract.
    I used Seth Nock (broker).
    He was easy to work with.

  5. #25
    Quote Originally Posted by sempreragdolls View Post
    Yes I am lej3156, not really in a hurry though unless a great deal came along .

    How long does a resale normally take to go through?
    This is the procedure once a contract is written. It takes 30-60 days. The company stays with the client until they are using the timeshare.


    The procedure for the closing is as follows:


    Signed contract is received from Buyer and Seller.
    An estoppel is ordered to verify maintenance fees and taxes.
    If resort has the First Right of Refusal, then a waiver is requested. Most resorts take approximately 2-4 weeks to inform their decision.
    Waiver is received by Title Company.
    Closing documents are sent out to Buyer and Seller.
    Closing Documents are received.
    Closing takes place.
    Deed is sent for recording.
    Once deed is received, the resort is notified and Buyer receives recorded deed.
    Buyer takes awesome vacations and refers all their friends to us.

    Hope that helps!!

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