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Question about Marriott and ROFR - I think a timeshare I am selling just was ROFR'ed

chemteach

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Hi All,
I recently signed a contract to sell one of my Marriott properties. I just received an email from Marriott that they are exercising ROFR. So a few questions for anyone who has sold a timeshare that was ROFR'ed. How does this work??? Will Marriott send me a deed to sign and then send me a check when the deed is recorded? The agreement included that the broker would be paid $1500 in addition to the cost of the timeshare, so the amount for the ROFR is more than my asking price. The broker says they sent this contract to the Marriott ROFR department. Will Marriott send them a check for the $1500, and me a check for my asking price? Or does Marriott send me a check for the full amount, and I send a check to the broker for the $1500? This is the first time I have dealt with Marriott ROFR. Any ideas how long Marriott takes to do the deed transfer and then send the check? Thanks in advance for any help/information!
 

taterhed

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They will contact you and send out a contract package for signature and mailing.
It should reflect the contract submitted by the broker.
Advise the broker (and copy them) at every step. They can spot mistakes/errors too---ones that might delay your transaction.

Make sure you hit every spot on the contract and every initial etc....if you delay, it can cause HUGE back-ups and delays. The laws may change (especially EOY) and then it all has to be redone. Ask me how I know.
 

SueDonJ

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Hi All,
I recently signed a contract to sell one of my Marriott properties. I just received an email from Marriott that they are exercising ROFR. So a few questions for anyone who has sold a timeshare that was ROFR'ed. How does this work??? Will Marriott send me a deed to sign and then send me a check when the deed is recorded? The agreement included that the broker would be paid $1500 in addition to the cost of the timeshare, so the amount for the ROFR is more than my asking price. The broker says they sent this contract to the Marriott ROFR department. Will Marriott send them a check for the $1500, and me a check for my asking price? Or does Marriott send me a check for the full amount, and I send a check to the broker for the $1500? This is the first time I have dealt with Marriott ROFR. Any ideas how long Marriott takes to do the deed transfer and then send the check? Thanks in advance for any help/information!

Marriott has no responsibility to make sure that your broker gets the $1500 over and above the amount for which your Week was actually sold, in fact some would say that including the broker/closing fees in the ROFR submission could constitute a fraudulent submission. It's up to you what you do with that extra, and up to the broker to decide if s/he's willing to fight you for it thereby exposing the questionable practice to legal scrutiny. IMO, this practice is what makes every ROFR.net report suspect because there's no way to tell in the database whether broker fees are included or not, and/or if Marriott would have exercised ROFR on the actual selling price. It also contributes to the overall "scam" label that many people automatically attach to anything related to timeshares.

Other than that, do what taterhed says and follow every Marriott instruction to make the process as unproblematic as possible. :)
 
Last edited:

chemteach

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They will contact you and send out a contract package for signature and mailing.
It should reflect the contract submitted by the broker.
Advise the broker (and copy them) at every step. They can spot mistakes/errors too---ones that might delay your transaction.

Make sure you hit every spot on the contract and every initial etc....if you delay, it can cause HUGE back-ups and delays. The laws may change (especially EOY) and then it all has to be redone. Ask me how I know.
So does the original broker stay involved in the entire sales process even though Marriott did the ROFR? I thought that at this point, Marriott sends me the paperwork for transferring the unit to them.
 

taterhed

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Marriott will deal with you--the owner. They have no duty to the broker....just to you and the contract.
You, however, have a fiduciary responsibility to your broker (assuming you signed the broker agreement/contract).
So, you need to keep the broker involved for 3 reasons:
  1. You owe them money. They will get their money one way or the other.
  2. They will help you get the money as quickly as possible. So you can pay them.
  3. The broker is experienced in spotting mistakes in the contract before you send it back and miss something, sign a bad contract or ????
I've worked with good brokers and had no issues.
I failed to shoot one contract by the broker before returning it and caused myself an extra 3 months and a 1% increase in state tax. ouch.
Trust me, make the broker work for you by proofing the docs and making the process smooth, fast and correct.
 

echino

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Marriott is slow. After the initial email from Marriott ROFR, it took 10 weeks to receive the check.
 

SteelerGal

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When our HGVC was ROFRed, First American took the 3rd party fees out of the selling price. I wonder if MVC can do the same.
 

liteonlino

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I have a related question. I recently completed a timeshare purchase via internet auction. When submitting the sales contract to Marriott, the broker added several thousand dollars to the purchase price (which I did not have to pay) so that our transaction would clear ROFR. Why would he do this?
 

TheTimeTraveler

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I have a related question. I recently completed a timeshare purchase via internet auction. When submitting the sales contract to Marriott, the broker added several thousand dollars to the purchase price (which I did not have to pay) so that our transaction would clear ROFR. Why would he do this?



Because he is unethical.

FYI: It is also illegal.





.
 

chemteach

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The broker wrote me back saying Marriott sends them the check directly. Seems like the broker wrote the broker fees into the rofr contract. So they get paid even though they don’t need to do anything else. I didn’t hire the broker. They contacted me through an ad I placed.
 

StevenTing

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I have heard rumor that you don't need to complete the transaction with Marriott. i.e. don't sign and return the paperwork. I think you could then list the week for a higher amount but you'd have to submit ROFR again. I don't know if this is true and would love to find out.

In regular real estate transactions, Sellers have the opportunity to not complete the transaction if it's in the timeline.
 

Norcal5

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I have heard rumor that you don't need to complete the transaction with Marriott. i.e. don't sign and return the paperwork. I think you could then list the week for a higher amount but you'd have to submit ROFR again. I don't know if this is true and would love to find out.

In regular real estate transactions, Sellers have the opportunity to not complete the transaction if it's in the timeline.

Yes, this rumor is true. I know because when Marriott took two months on my ROFR they said it was because the week was on “hold” because the buyer had refused to give the week to Marriott when his ROFR was exercised previously.
 

Norcal5

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Thanks for confirming. Did it ever get resolved? I wonder if there is a certain amount of time that has to pass before the hold is removed or if it is on hold indefinitely.
Yes it did. It probably added more than 6 weeks to the process though, and I missed booking the week I wanted.
 

Dean

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The broker wrote me back saying Marriott sends them the check directly. Seems like the broker wrote the broker fees into the rofr contract. So they get paid even though they don’t need to do anything else. I didn’t hire the broker. They contacted me through an ad I placed.
As long as it was written into the sales contract you and the broker are both fine and we're appropriate. It sounds like the broker took the chance of buying it themselves expecting MVC would take it ROFR and they'd have the easy commission.

I have heard rumor that you don't need to complete the transaction with Marriott. i.e. don't sign and return the paperwork. I think you could then list the week for a higher amount but you'd have to submit ROFR again. I don't know if this is true and would love to find out.

In regular real estate transactions, Sellers have the opportunity to not complete the transaction if it's in the timeline.
One can not follow through but technically you would have a contract and the other party could potentially force you to proceed if they fulfilled their end. I've never heard of a timeshare company forcing the process though. Historically DVC would let you rewrite the contract and resubmit if you wanted but I'm not sure if they do that anymore.
 

AJCts411

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Is there a cost to submit for ROFR? Who pays?
 

davidvel

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Marriott has no responsibility to make sure that your broker gets the $1500 over and above the amount for which your Week was actually sold, in fact some would say that including the broker/closing fees in the ROFR submission could constitute a fraudulent submission. It's up to you what you do with that extra, and up to the broker to decide if s/he's willing to fight you for it thereby exposing the questionable practice to legal scrutiny. IMO, this practice is what makes every ROFR.net report suspect because there's no way to tell in the database whether broker fees are included or not, and/or if Marriott would have exercised ROFR on the actual selling price. It also contributes to the overall "scam" label that many people automatically attach to anything related to timeshares.

Other than that, do what taterhed says and follow every Marriott instruction to make the process as unproblematic as possible. :)
I don't see why this is the case, if the fee was being paid by the buyer. Marriott only has the right to exercise on the same terms in the original deal. Marriott should pay exactly same as the OP's buyer, no matter what the payment is called.
 

chemteach

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I don't understand why people say the broker's aren't supposed to put their fees in the paperwork. I believe the broker put the paperwork in showing the broker fee as a fee.
 

BreakingAway

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I don't understand why people say the broker's aren't supposed to put their fees in the paperwork. I believe the broker put the paperwork in showing the broker fee as a fee.
Agree. The broker’s commission is included in the total cost in other real estate transfers. I think it should be included in the total cost of the transaction with timeshares.
 

Dean

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I don't understand why people say the broker's aren't supposed to put their fees in the paperwork. I believe the broker put the paperwork in showing the broker fee as a fee.
It all depends on how the contract is written. If it's written in the contract as an extra, it's OK. But if it's not, then no. For example, you can't sell for $1500, have the broker get $1500 where you'd walk away with zero on completion but submit it to MVC as $3000 (sale plus commission). Effectively you'd be listing the commission twice in this example. Is it possible to be dishonest and get a sale past ROFR that shouldn't otherwise? The answer is yes, it seems to be fairly common with some brokers to do so. And it appears to work in many cases but again, it's dishonest.
 

davidvel

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It all depends on how the contract is written. If it's written in the contract as an extra, it's OK. But if it's not, then no. For example, you can't sell for $1500, have the broker get $1500 where you'd walk away with zero on completion but submit it to MVC as $3000 (sale plus commission). Effectively you'd be listing the commission twice in this example. Is it possible to be dishonest and get a sale past ROFR that shouldn't otherwise? The answer is yes, it seems to be fairly common with some brokers to do so. And it appears to work in many cases but again, it's dishonest.
Correct, what matters is how much the buyer would have paid, not how much the seller would have netted. If under the contract a buyer pays $3,000, that is what Marriott should pay.
 
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