PAHIO and ROFR with respect to postcard companies

[shopgirl Senior Member Find all posts View Profile Close shopgirl]

How does PAHIO dare to pretend to exercise ROFR when owners are paying postcard companies $3,495 to give up their timeshare weeks?

This question is very relevant to our current situation. Deed is in Vacation Solutions' name, yet we are having to go through this process to buy the week for our bargain price? This is very fishy to me.

What do you think?

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

I think that most of the properties being surrendered to the postcard companies are older sales for which there is no ROFR provision.

It could also be that since Pahio is selling their new buildings, they aren't interested in acquiring inventory in the older buildings - they keep some on hand to offer to someone who inquires about resales during the sales pitch. But if they aren't geared up to market the older buildings, they wouldn't be interested in acquiring many of those units. And again, those older buildings are probably too old to have ROFR provisions.

I also suspect that in cases where the postcard company does acquire the property, the sale price is listed as $1 or such. Property transfer needs to involve consideration, which typically requires some positive price. If Pahio then exercises a ROFR at $1, the post card company really doesn't care.

[shopgirl Senior Member Find all posts View Profile Close shopgirl]

True, but they are trying to stop my sale from Vacation Solutions. How is that okay? They didn't have the right of first refusal in any contracts before 7/2005, although they like to pretend they have it and actually use one of the clauses as proof of ROFR. It is a crock! Why not protect that poor owner from scum like Vacation Solutions, Resort Acquisitions, Timeshare Relief, Time No More, etc., and offer to take the timeshare from the owner for ZERO cost? Why pretend to have ROFR now?

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Because Vacation Solution may never go through them before until now. This is what may happen, Vacation Solution may get agreement from owner that allow them to do whatever they can do, including pay MF for them, then VS just sold the property without transfer the ownership until it is sold. Or VS transfer the deed in local government level since it is in their hand for x month and they have to do that. The resort can claim they never know and never care. Only at this moment, you will use the resort, so it has to transfer in the resort also, then the resort get proper notified.

Since you really don't want to help the operation like that, if the WYN has to pay VS for ROFR, that is WYN help the VS set up the business like that, you should be glad you are out of this loop. ANd as owner, you can force WYN to rethink their own moral ground on all the stuff they do.

Jya-Ning

[Spence Super Moderator Find all posts View Profile Close Spence]

Smilie for Cindy

How does PAHIO dare to pretend to exercise ROFR when owners are paying postcard companies $3,495 to give up their timeshare weeks?
This question is very relevant to our current situation. Deed is in Vacation Solutions' name, yet we are having to go through this process to buy the week for our bargain price? This is very fishy to me.
What do you think?

I would think that you'd be very happy. You now don't have to buy that terrible thing you 'promised' you'd buy by bidding on eBay.

[shopgirl Senior Member Find all posts View Profile Close shopgirl]

Well, the deed is in Vacation Solutions' name. You would think there would be a process for the transfer that would be the same for them?

Jya-Ning, I wonder why there is no ROFR that helps the poor original owner of that week. You would think there would be some angst on the part of PAHIO, seeing owners paying money to get rid of their weeks. There are lies told to PAHIO about the transfer from owners to postcard companies. I guarantee they lie about it. I just wonder how PAHIO could turn a blind eye to it.

Also, Jya-Ning, what other things does Wyndham do that are not right?

I don't understand why they don't ROFR Fairshare points sales but will step in on a transfer of a week.

Spence, I am not sure whether this deal will go through, but I still want the week. I was counting on it for a specific purpose. We will see if I can get the deal. My conscience is something I am wrestling with. Thanks for the smilies!

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Well, the deed is in Vacation Solutions' name. You would think there would be a process for the transfer that would be the same for them?

Jya-Ning, I wonder why there is no ROFR that helps the poor original owner of that week. You would think there would be some angst on the part of PAHIO, seeing owners paying money to get rid of their weeks. There are lies told to PAHIO about the transfer from owners to postcard companies. I guarantee they lie about it. I just wonder how PAHIO could turn a blind eye to it.

Also, Jya-Ning, what other things does Wyndham do that are not right?

I don't understand why they don't ROFR Fairshare points sales but will step in on a transfer of a week.

No, I have bought from son that get deed from father but resort never know it happens. Unless you need to tell resort who is the new owner, the resort has no idea there is a transfer of owner even if you transfer in local government.

Wyndham also owns RCI and control WM. I care more about survive and can it substain. Right or wrong usually is 2ndary in my testing scale. No, actually, so far I think Wyndham is doing O.K. maybe they can do better for sure, but a lot they may or may not be able to do or to handle.

If PAHIO has ROFR but does not have anyone execute it, now with it start to open sale line there, it can be exericed. Marriott does the same. They may have ROFR on all its properties, but only use it if your purchase will directly impact their sale line.

Make no mistake, ROFR does not help the poor owner, if Disney owner pay $3000 to Postcard company, the ROFR by Disney should be the owner pay the same amount of money to Disney. I am pretty sure Disney will not do anything on that but will do excerise on the one who bought it. ROFR does not mean the developer will pay certain amount of money to the owner, it just mean if the owner find someone to transfer his ownership, and if the developer thinks it is lower than its threshhold, it can give the owner the same deal and take over the contract. In other word, if your deal is you pay me 1000 in order for me to take over your contract, and your resort executes it, instead of paying me, you will now paying your resort.

FF does start to put ROFR in some of their contracts now. Will see what happen. But I doubt they will use it since they have enough inventories to sell. It takes the same amount of money to get rid of the same amount of points. The only difference is they don't have to pay the construction cost, and it is usually about 20%. So unless the market has enough inventory that are much lower than the construction cost, it make no sense to do anything like that.

As to Why PAHIO could turn blind eye, well, I am pretty sure when I buy from Postcard company, I am turning blind also.

Jya-Ning

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

You might note that they record the deed as having transferred for $0 - see here, for example.

So the original seller is still out the $3000 they gave Vacation Solutions. If Pahio exercises ROFR, it's an easy clean transaction for Vacation Solutions - the unit never even makes it into their hands. They get their $3k and avoid having to deal with disposing of it. Meanwhile, the original owner is still out the $3000 paid to VS.

Frankly, I don't see how Pahio exercising their ROFR protects the original seller in any fashion.