What is the Right of First Refusal?
Like many vacation ownership companies, Marriott’s vacation ownership contracts include a Right of First Refusal clause which states that Marriott may purchase a Marriott Vacation contract that an owner is trying to sell to a third party. If Marriott chooses to, they may step in and replace the buyer in the sale but they must honor all the terms that were agreed upon between the owner and the buyer.
Every sale of a Marriott Vacation Club contract, minus a few exceptions listed below, must go through the Right of First Refusal process. During this process the owner/seller is essentially asking Marriott to waive its Right of First Refusal.
Marriott has a designated amount of time to respond to Right of First Refusal submissions based on the resort being sold. The response time limit ranges from 15 to 30 days, although Marriott typically responds within 10 days, and often even faster. If Marriott fails to respond to the owner/seller within the designated time limit, the owner is free to continue with the sale of their contract.
If Marriott chooses to waive the Right of First Refusal, the owner will be charged a ROFR Waiver Fee. The current fee for the Right of First Refusal is $95 and should be paid by the owner prior to the transfer of the ownership.
Locations That Don’t Have the ROFR
The following resorts do not have a Right of First Refusal clause and therefore do not require the owner to request a ROFR waiver from Marriott when selling:
- Marriott’s Frenchman’s Cove
- Marriott’s Desert Springs Villas I (MDS Villas II does have the ROFR clause)
- Marriott’s Fairways Villas
- Marriott’s Harbour Club at Harbour Town
- Marriott’s Harbour Point at Shelter Cove
- Marriott’s Heritage Club at Harbour Town
- Marriott’s Monarch at Sea Pines
- Marriott’s Royal Palms
- Marriott’s Sabal Palms
- Marriott’s Streamside (Birch, Cedar, Douglas
- Marriott’s Sunset Pointe
How To Request the ROFR Waiver
If you are working with a reputable resale broker to sell or buy your contract they will manage the ROFR process on your behalf. The resale broker will submit a letter requesting ROFR along with all necessary information.
If you are selling your contract privately you will need to notify Marriott in writing of your intent to sell. Remember that you must submit a request to waive the Right of First Refusal when selling your contract. Failure to do so may result in Marriott not recognizing the buyer as an owner.
You may submit your ROFR waiver request to Marriott by email to email@example.com. In your email you should include your ownership information (resort, week number or point information), seller and buyer name, seller contact information (email, phone, address), sale price and terms. It is also advisable to include a copy of the sales contract.
How To Ensure Marriott Doesn’t Exercise ROFR
Working with a resale professional like SellingTimeshares Inc. can greatly increase the likelihood of receiving a ROFR waiver from Marriott. Experienced vacation ownership resale brokers have data of recent ROFR waivers as well as sales in which Marriott exercised their Right of First Refusal. Knowing this information, the resale broker can guide you when making an offer to purchase a Marriott vacation contract. While there are no guarantees that any sale will be waived, following the advice of an experienced broker will greatly increase the likelihood of receiving a ROFR waiver.
Contact Selling Timeshares Inc. if you’re interested in selling or buying a Marriott Vacation Club contract or would like more information regarding Marriott’s Right of First Refusal process.