Marriott Exercises ROFR on a Gift

[bizaro86]

Someone very generously offered to give me a shadow ridge gold unit. When closing through LT Transfers, we were informed that Marriott now requires ROFR notification for gifts that aren't a direct family member. Subsequently, they said they are taking over the transfer for $0 and "other good and valuable consideration."

I'm pretty annoyed about the whole thing, as a gold week there is a week I would actually use.

Any suggestions appreciated, but mostly just an FYI for those considering gifting weeks.

 

[jabberwocky]

Hmmmm...sounds like your friend needs to gift you $5000 subsequent to your purchase of the $5000 timeshare

 

[b2bailey]

That doesn't sound right at all.

 

[Dean]

Someone very generously offered to give me a shadow ridge gold unit. When closing through LT Transfers, we were informed that Marriott now requires ROFR notification for gifts that aren't a direct family member. Subsequently, they said they are taking over the transfer for $0 and "other good and valuable consideration."

I'm pretty annoyed about the whole thing, as a gold week there is a week I would actually use.

Any suggestions appreciated, but mostly just an FYI for those considering gifting weeks.

I wonder if the wording could have been an issue. Could it have been worded as a gift rather than as referenced.

Hmmmm...sounds like your friend needs to gift you $5000 subsequent to your purchase of the $5000 timeshare

For all the states I'm aware of, that would be illegal as it's illegal.

 

[bizaro86]

That doesn't sound right at all.

I agree it doesn't seem right. But I trust LT Transfers, and they forwarded both the initial email from Marriott saying ROFR was required as well as the rofr exercise form. I'm not going to post the form as it has the person who was giving the TS's personal info on it, but it was just a form letter anyway. Original email below.

RE: Marriott Vacation Club – Right of First Refusal Policy

I hope this finds you well. Any transfer of Marriott Vacation Club inventories, that currently require a ROFR, from one party to another must go through the Right of First Refusal process. This includes all sales, bona fide offers (with or without a monetary amount) or transfers from one party to another. This does not apply to transfers from one party to their trust or corporation nor a Parent to Child or Child to Parent transfer where no money is involved.

In order to complete the transfer with Marriott Vacations Worldwide, Owner Modifications will require the ROFR waiver otherwise the transfer will not be completed.

Please do not hesitate to contact me with any questions or concerns.

Warmest regards,


《Name redacted》
Resale Manager, Resale Operations
Marriott Vacations Worldwide
6649 Westwood Blvd, Suite 500

 

[Panina]

I agree it doesn't seem right. But I trust LT Transfers, and they forwarded both the initial email from Marriott saying ROFR was required as well as the rofr exercise form. I'm not going to post the form as it has the person who was giving the TS's personal info on it, but it was just a form letter anyway. Original email below.

RE: Marriott Vacation Club – Right of First Refusal Policy

I hope this finds you well. Any transfer of Marriott Vacation Club inventories, that currently require a ROFR, from one party to another must go through the Right of First Refusal process. This includes all sales, bona fide offers (with or without a monetary amount) or transfers from one party to another. This does not apply to transfers from one party to their trust or corporation nor a Parent to Child or Child to Parent transfer where no money is involved.

In order to complete the transfer with Marriott Vacations Worldwide, Owner Modifications will require the ROFR waiver otherwise the transfer will not be completed.

Please do not hesitate to contact me with any questions or concerns.

Warmest regards,


《Name redacted》
Resale Manager, Resale Operations
Marriott Vacations Worldwide
6649 Westwood Blvd, Suite 500

I love LT Transfers and have used them for all my sales. Almost always they get the correct information.

I had one instance with a fixed week transfer that they told me that Bluegreen had required me to use a certain transfer company. A few phone calls later I found I could use LT and some Bluegreen staff was misunderstanding some new policies and was giving wrong info. Using LT transfers versus Bluegreens closing company saved my buyer hundreds. My point even LT Transfers is given wrong information.

I personally would call Marriott and go up the chain to management and make sure this is true.

I know with HGVC to gift I had to notarize a statement that it was a gift and many at the time were unaware this could be done.

 

[Grammarhero]

I got RORFed over a gifted Manor Colony.

 

[dioxide45]

To get if for more than Marriott was willing to pay, be willing to pay more than Marriott. So you need to pay more than $0. I see no real reason why a gift to a non family member or acquaintance is not subject to ROFR. Too much room for abuse. Sure it is a gift *wink*. Here is $500 after the fact through Zelle.

 

[controller1]

To get if for more than Marriott was willing to pay, be willing to pay more than Marriott. So you need to pay more than $0. I see no real reason why a gift to a non family member or acquaintance is not subject to ROFR. Too much room for abuse. Sure it is a gift *wink*. Here is $500 after the fact through Zelle.

+1 - This area is ripe for abuse just as @dioxide45 points out. I don't have a problem with this policy.

 

[dioxide45]

I would also say if there is a contract, a contract of any kind, it isn't a gift.

 

[Panina]

To get if for more than Marriott was willing to pay, be willing to pay more than Marriott. So you need to pay more than $0. I see no real reason why a gift to a non family member or acquaintance is not subject to ROFR. Too much room for abuse. Sure it is a gift *wink*. Here is $500 after the fact through Zelle.

I gifted a HGVC unit and it was legit. I owned it and chose to give it away versus selling. If it was rofr in a sale that I was receiving money for I would be ok. Even though I gifted it because I no longer wanted it, and rofr would still give me the same result it would irk me that my choice to give it to a friend or other was taken away from me.

Abuse can happen in reverse. You give it to a friend and you go through the steps of payments showing an amount that won’t be rofr knowing you will not be keeping that friends money. So in my opinion this policy has nothing to do with abuse, just another way to get inventory for free and take away more rights from timeshare owners.

 

[Saintsfanfl]

I am the “giver” in both bizaro86’s and grammarhero’s cases. There is a 3rd and they were basically exercised at the same time. It is very frustrating because I called them and they would not even take a deedback for any of these units.

Another thing that used to happen is I would sell a unit but add the closing cost to the price with me as the seller paying closing. If Marriott exercised they would pay me the higher amount but I wouldn’t have to pay closing. This was a little benefit if they ended up exercising. Someone noticed and now if they exercise they are deducting the closing costs from my proceeds. This bites because they charge more for closing than LT Transfers does.

Not to be a conspiracy theorist or anything but I have a feeling I am on some type of list where they will not buyback or broker my units. But they will still exercise ROFR when I sell. Several times in the last year I have called and they would say “yes” only to have them start entering and say “wait, no we are not actually doing that”. Most recently it was with Manor Club Platinum that I was giving away in the bargain forum. Since they said it has to pass ROFR I called about a deedback to save everyone the trouble. I got the yes, start the process, oh wait, no. Doing that for a deedback makes no sense.

 

[Panina]

I am the “giver” in both bizaro86’s and grammarhero’s cases. There is a 3rd and they were basically exercised at the same time. It is very frustrating because I called them and they would not even take a deedback for any of these units.

Another thing that used to happen is I would sell a unit but add the closing cost to the price with me as the seller paying closing. If Marriott exercised they would pay me the higher amount but I wouldn’t have to pay closing. This was a little benefit if they ended up exercising. Someone noticed and now if they exercise they are deducting the closing costs from my proceeds. This bites because they charge more for closing than LT Transfers does.

Not to be a conspiracy theorist or anything but I have a feeling I am on some type of list where they will not buyback or broker my units. But they will still exercise ROFR when I sell. Several times in the last year I have called and they would say “yes” only to have them start entering and say “wait, no we are not actually doing that”. Most recently it was with Manor Club Platinum that I was giving away in the bargain forum. Since they said it has to pass ROFR I called about a deedback to save everyone the trouble. I got the yes, start the process, oh wait, no. Doing that for a deedback makes no sense.

Thanks for sharing. Makes no sense that they wouldn’t take a deed back to get your units but exercised rofr. Seems they are trying to stop the gifting but eventually owners who don’t want it will figure out gift it and they will take it and then they will have too many and let the gifting occur again.

 

[bizaro86]

I would also say if there is a contract, a contract of any kind, it isn't a gift.

What would you have done in a similar situation? MVC says they won't honor a transfer without clearing rofr for a gift. Just record a deed showing the gift and sue them for access?

I'm genuinely curious, because I wanted that week and I don't have it now, so if I could have done better I'd appreciate thoughts.

 

[bogey21]

When it came time to sell my pre-construction Sabal, Harbour and Heritage and resale Monarch Weeks Marriott was great. They went the extra mile renting then selling my Sabal and Monarch Weeks for me. Today, you decide...

George

 

[dioxide45]

What would you have done in a similar situation? MVC says they won't honor a transfer without clearing rofr for a gift. Just record a deed showing the gift and sue them for access?

I'm genuinely curious, because I wanted that week and I don't have it now, so if I could have done better I'd appreciate thoughts.

That really wouldn't work either. With the ne ROFR environment for gits, it seems you have to be willing to pay more than Marriott if you want the week. That is the reality. You are willing to pay $0 and so was Marriott. Be willing to pay $100, $200, perhaps more.

 

[Panina]

What would you have done in a similar situation? MVC says they won't honor a transfer without clearing rofr for a gift. Just record a deed showing the gift and sue them for access?

I'm genuinely curious, because I wanted that week and I don't have it now, so if I could have done better I'd appreciate thoughts.

I personally believe at some point someone will sue and will win but unfortunately that will cost time and money as Marriott has lots of it.

If the resort is one you really want to have and/or you want a Marriott, you will need to find one and pay something. I would start at $1000 and see if that passes and if not go higher until you don’t feel comfortable with the price.

If you are trying to get into a system, you might start seeing some hgvc being given away as some are nervous of a merger. Hgvc does allow gifting.

 

[b2bailey]

What was the 'good and valuable consideration' given?

 

[Sapper]

I wonder if the wording could have been an issue. Could it have been worded as a gift rather than as referenced.

For all the states I'm aware of, that would be illegal as it's illegal.

That is not illegal. There may be some tax implications for someone. However, gifting money or property is not illegal.

 

[Dean]

Thanks for sharing. Makes no sense that they wouldn’t take a deed back to get your units but exercised rofr. Seems they are trying to stop the gifting but eventually owners who don’t want it will figure out gift it and they will take it and then they will have too many and let the gifting occur again.

As I stated in another thread, a major (if not the main) purpose of ROFR is to push people too retail. They do that by creating confusion and frustration among other things.

That is not illegal. There may be some tax implications for someone. However, gifting money or property is not illegal.

For all states I am aware of to put terms in the contract that are not the actual terms and for the purpose of misleading related to ROFR would be a violation of state law. Therefore to make a side deal for the purpose of bypassing ROFR is both illegal and dishonest.

 

[BocaBoy]

+1 - This area is ripe for abuse just as @dioxide45 points out. I don't have a problem with this policy.

I think this policy is absurd. The memo says parent to child or child to parent is OK. That means not even a gift to a grandchild escapes ROFR. Absurd is too mild a term. Unconscionable would be better.

 

[BocaBoy]

I would also say if there is a contract, a contract of any kind, it isn't a gift.

Absolutely not true from a legal perspective. Many large gifts have contracts spelling out the terms.

 

[BocaBoy]

What was the 'good and valuable consideration' given?

That is legal boilerplate found in many real estate transactions. Could be anything in practice, even something as simple as being cooperative.

 

[dioxide45]

I think this policy is absurd. The memo says parent to child or child to parent is OK. That means not even a gift to a grandchild escapes ROFR. Absurd is too mild a term. Unconscionable would be better.

I would agree that perhaps the terms of who you can gift to are too restrictive. But a gift from to someone you have know personal relationship with prior to your "gift" is what I am referring to. We also don't know if there are other specific examples where ROFR doesn't apply but weren't listed.

Absolutely not true from a legal perspective. Many large gifts have contracts spelling out the terms.

Perhaps, but if someone is on the Bargain Deals forum giving away a timeshare and says that the recipient is to pay closing costs and transfer fees, it is still really a gift?

 

[StevenTing]

I would think in this instance, the seller/giftor could refuse to complete the transaction and then submit another contract with a higher consideration attached. Language could be added that if the contract passes ROFR and is not taken by MVC that buyer will be entitled to a rebate, 30 days after closing/settlement.