Welcome,
kk12.
This question was answered a few weeks ago by one of our Forum participants, who is a lawyer and he provided the 'legal' description of the
Right of First Refusal . His forum post is quoted below:
Quote:
Hi, Just a lawyer searching for a place to sell my time-share and thought I'd provide those who want to know about info on the 'first right of refusal' or at least it's definition.....so here goes:
Right of First Refusal
Privilege of Preempting Transaction: a privilege somebody has to prevent a transaction, typically a sale, lease, or sublease, by agreeing to stand in the place of one party, often the buyer or lessee. Often a condominium's or cooperatives board of directors has this right.
Great site by the way...like the in-house closing concept!
Charles W., ESQ
|
So, basically the timeshare resort or developer reserves the right to essentially "
step into the buyers shoes" and buy back the timeshare for the exact conditions agreed upon between the buyer and seller. This clause exists in many timeshare resort or developer contracts, but very, very few actually act upon this right. In my experience,
Marriott Vacation Club &
Disney Vacation Club are the only two that regularly exercise this right. However, there have been other occurrences when a timeshare resort or developer has acted upon this right.