In this article, we’ll be exploring a few of the most important facets of Right of First Refusal when buying Club Intrawest on the resale market. Becoming educated about this program can help owners know what to expect when they sell, and help buyer’s understand what their up against when purchasing on the secondary market.
Right of First Refusal
Right of First Refusal is a program in which the developer reserves the right to purchase the ownership back directly from an owner who wishes to sell their timeshare on the resale market. Once a seller receives an acceptable offer in contract form, the contract is submitted to Club Intrawest’s transfer’s department to review the sale. Before being transferred, the transfer’s department will review the sale, ensuring the seller’s account is up to date, and that the buyer’s offer is above Club Intrawest’s interal pricing thresholds for fair market value of the ownership in question. The main reason why Club Intrawest will purchase an ownership back is to preserve the resale value of their ownerships. For this reason, if Intrawest deems the purchase price to be below fair market value, they will not allow the sale to conclude by buying the property back.
Buyer’s Considerations
If the ownership is ultimately bought back by Club Intrawest, the buyer will have to start the process of negotiating and contracting a unit over again, but any deposits held with the closing company will be refunded to the buyer. This can be a great motivation to work with an experienced and licensed resale broker who can help you understand what offers will be purchased back from the developer.
Seller’s Considerations
If the ownership is bought back by Club Intrawest, the seller’s transaction is concluded in the exact same manor, except for the fact that the seller is paid directly from Club Intrawest rather than from the buyer’s funds in escrow. In this sense, Right of First Refusal stands only to aid the owner’s transaction and preserve their resale value, and is much less of a detriment to them.
Contact Us
If you have any remaining questions or require any assistance regarding timeshare ownership, feel free to contact us.
