Owners of Vistana timeshares that are looking into selling their property, or buying their first Vistana ownership, may have heard about Vistana’s right of first refusal program that protects the resale value of certain Vistana properties. In this article, we’ll be walking you through what right of first refusal is, how it affects buying or selling on the resale market, and giving you some tips on how to navigate the program more easily.
What Is Vistana’s Right Of First Refusal Program?
Right of first refusal (ROFR) is a contractual right that gives a timeshare developer the option to purchase a timeshare interest directly from the existing owner before the owner can enter into a transaction with a third-party buyer on the resale market. It’s important to note that this right of first refusal clause is not written into every property that is part of the Vistana Signature Network portfolio of resorts.
Here is a list of all the Vistana vacation ownership interests (VOI) that are subject to right of first refusal:
- Westin Kaanapali Ocean Resort Villas
- Westin Kaanapali Ocean Resort Villas North
- Westin Mission Hills Resort Villas
- Westin Nanea Ocean Villas
- Westin Princeville Ocean Resort Villas
- Westin Flex
- Westin Adventuras
- Sheraton Flex
Two Possible Outcomes
It’s important to note that sellers must first have a purchase agreement from a buyer on the resale market signed and accepted, which is then forwarded to Vistana to review. Once the purchase agreement has been reviewed by Vistana, they can choose to perform one of two possible actions:
Waiving Their Right To Purchase
If Vistana waives their right to purchase the ownership, the sale and transfer process proceeds without any alterations. The buyer will ultimately receive the ownership at the end of the transfer period, and the seller will receive the proceeds of the sale from escrow upon transfer.
Exercising Their Right To Purchase
If Vistana exercises their right to purchase the ownership, Vistana will essentially replace the original buyer, and will accept whatever terms are outlined in the purchase agreement. The seller will not be impaired what-so-ever. They will receive the exact same amount of money, and all terms will remain the same.
In this case, the buyer will lose their ability to purchase the ownership, and will be refunded any deposits that were made into the escrow account during the transfer process.
Timeline Of Vistana’s Right Of First Refusal
Once the purchase agreement has been received, Vistana has 10-15 business days (depending on the home resort being sold) to respond to either waive their right to purchase the ownership, or exercise their right to purchase the ownership.
If they do not respond within 10-15 business days, no further notice is needed to sell the property to a third party buyer on the resale market, as long as it occurs within 90 days of the initial notice that is sent to Vistana.
Why Does Vistana Buy Their Timeshares Back From Sellers?
Vistana will usually only exercise its right of first refusal when the amount that the owner is selling for is lower than a pre-determined threshold. This practice is common for the popular name-brand timeshare developers, and is done in order to preserve the resale value of the timeshare. The exact price that will trigger Vistana to exercise its right of first refusal is not publicly available, and will be different depending on the Vistana VOI being sold. Also, these thresholds can change through time, so it’s important to work with an experience resale broker who can guide you through the process.
Conclusion
Although Vistana’s right of first refusal does add a few additional steps and time to buying and selling a Vistana timeshare on the resale market, there’s no need to be intimidated! With a little education and guidance you can successfully navigate the process and steer clear of any significant problems.
If you’re looking into buying a Vistana timeshare resale, feel free to browse our current Vistana resale listings, or contact us for a free consultation.
If you’re looking into selling your Vistana property, please fill in a seller’s form to start the process. We have licensed agents who specialize in Vistana resales that can walk you through the process!
