Posted on: 14th Jan, 2009 08:21 am
To whom it may concern:
I am trying to buy a timeshare for 13,000.00 through Marriott Timber Lodge. We have tentatively agreed on a 11.99% int. for 5 years at 244.93 per month with a balloon payment after 2 years but Marriott has what they call a "first right of refusal" That means that if they see a contract for sale that goes through their office that they think is selling too cheap, they don't allow it to be sold and they buy it back themselves. The owner wants to wait until the balloon payment to put in the contract to Marriott. What should I do?
My second question is that on the owner wants to keep his name on not only the titled (which is ok) but also not changing it on the Marriott account, only allowing me to make reservations through him. Since I will be paying all taxes and maint. fees, again through him, I feel I should be on the account. On a previous timeshare I purchased, she allowed me to put my name on the account, in addition to hers so I could call and make reservations myself.
If I could get your advise on these questions, I would greatly appreciate it.
Thank you,
Lissette
I am trying to buy a timeshare for 13,000.00 through Marriott Timber Lodge. We have tentatively agreed on a 11.99% int. for 5 years at 244.93 per month with a balloon payment after 2 years but Marriott has what they call a "first right of refusal" That means that if they see a contract for sale that goes through their office that they think is selling too cheap, they don't allow it to be sold and they buy it back themselves. The owner wants to wait until the balloon payment to put in the contract to Marriott. What should I do?
My second question is that on the owner wants to keep his name on not only the titled (which is ok) but also not changing it on the Marriott account, only allowing me to make reservations through him. Since I will be paying all taxes and maint. fees, again through him, I feel I should be on the account. On a previous timeshare I purchased, she allowed me to put my name on the account, in addition to hers so I could call and make reservations myself.
If I could get your advise on these questions, I would greatly appreciate it.
Thank you,
Lissette
Hi lissetteeckert,
First right of refusal is the right of a person or company to purchase something before any offering is made available to others. A lot of people use this in their agreement. In my opinion, if you do not feel comfortable with the first right of refusal, then you should not go for it. As far as your name on the account is concerned, you can speak to owner about it and convince him so that he agrees to keep the account in your name.
Thanks,
Jerry
First right of refusal is the right of a person or company to purchase something before any offering is made available to others. A lot of people use this in their agreement. In my opinion, if you do not feel comfortable with the first right of refusal, then you should not go for it. As far as your name on the account is concerned, you can speak to owner about it and convince him so that he agrees to keep the account in your name.
Thanks,
Jerry
Well, what do you think Marriott will do a contract to see if it passing the "Right of Refusal" if the owner is financing the property himself?
And is it normal to assign the account in someone elses name without their name being on the deed?
Thanks, Lissette
And is it normal to assign the account in someone elses name without their name being on the deed?
Thanks, Lissette
Hi Lissette,
I think it will be Marriott's discretion as to what they will do. They may still keep the right to first refusal with themselves. I think your name should be on the Marriott's account as you will be making the mortgage payments.
Thanks.
I think it will be Marriott's discretion as to what they will do. They may still keep the right to first refusal with themselves. I think your name should be on the Marriott's account as you will be making the mortgage payments.
Thanks.
Marriott has a "First Right of Refusal" on just about all the the timeshares they sell at their properties. The original owner must give Marriott the right to buy back the timeshare at the same price and terms you offer the seller. However, with the economy the way it is and unless you are buying it for next to nothing, Marriott seldom buys it back, especially if the resort is not completely built out and they still have their own units to continue to sell off to redue their inventory. I would not worry about it. The Right of First Refusal only applies to the original owner; it will not apply to you if you later want to sell the unit. If the seller only has this one Marriott Timeshare that they are selling, it may not be a problem to somehow be added to the account for reservations. However, if the seller has other Marriott timeshares it can be a problem as Marriott does not separate the accounts online. So you could get online and see all the terms, payments, loan balance, etc not only on the unit you are buying, but also on the other units the seller owns. You would probably also then have access to information, plus reservations to the other units owned by the seller which could be a problem. Unless the current seller owns the unit free and clear, without a loan, Marriott will not allowed title to be transferred to you until the current loan is paid off, and, like most real estate, I imagine the seller can not payoff that loan in full until he gets the balloon payment from you in a couple years. So it sounds like the current owner is not in a position to payoff the loan and you are not in a position to pay cash for the unit, or go get another loan to pay it off. As in any transaction, it is rare to get any owner financing, so it sounds like a win-win situation if you are lucky enough to have a seller who is willing to work with you on the financing. But you will have to wait til you pay it off to get full & legal title to the property and the current owner will have to comply with the terms of his agreement with Marriott on their First Right of Refusal. Whether or not you can make reservations when you are not the legal owner is another issue, and if your seller owns other Marriott units, it might be a problem to add you and let you have access to their other units as I know with Marriott their online signin with ID and password gives you access to all units you own at once. By the way, I have been to TimberLodge and it is great and that is a great price.