First right of refusal is a developer right that allows give the developer the option to purchase your ownership back from you, preventing a sale to the open market.
This right allows the developer to purchase back a timeshare from the owner rather than letting the owner sell to a third party, essentially refusing to allow the sale to be completed to the third party buyer.
Owners who are looking to sell their timeshare ownerships must first submit their resale purchase agreement to the developer to review. The developer has 30 days to either allow the transaction or refuse the transaction and buy it back themselves. After 30 days, the developer will choose to either waive their right to act on their right of first refusal or to purchase the ownership. If the developer acts on their right of first refusal, then the buyer does not lose their earnest money deposit but will have to start again in purchasing another timeshare from another owner.
As an owner, right of first refusal gives you peace of mind that your resale value will not fall greatly during the time of ownership. The secondary market can fluctuate erratically and right of first refusal allows developers to maintain a consistent market value for their ownerships.
If you have any further questions about right of first refusal please feel free to contact us for a free consultation.