What “Right of First Refusal” means in timeshare resale

The Right of First Refusal (ROFR) gives the timeshare developer (or resort) the option — ahead of any third-party buyer — to buy back a timeshare when the owner attempts to resell it. 

Practically: when you, the owner, find a buyer and agree on price/terms, that contract must first be submitted to the resort/developer for their review. 

The resort/developer then has a specified period (often ~ 30 days) to decide whether to exercise their ROFR — i.e. purchase the timeshare themselves under the same contract terms — or waive the right and let the sale go through to the third-party buyer. se

What happens if they execute their right

If the developer chooses to exercise ROFR, they become — in effect — the buyer. The original third-party buyer is rejected (their deposit refunded), and the sale proceeds between you (the seller) and the developer. 

From the seller’s perspective, you still receive the agreed resale price (via escrow), so you’re not penalized — you still get the money. 

Why timeshare developers use ROFR

It gives the developer control over the resale market. Because resale timeshares often trade at a fraction of the original price, developers use ROFR to prevent the resale market from undercutting the value of their new or marketed units. 

By stepping in when prices are “too low,” they keep resale values (and their own pricing power) stable. 

What ROFR means for you if you’re buying or selling a timeshare

For sellers: it can mean an extra step and delay in closing the sale. Even if you find an interested buyer, the process can stall while waiting for the developer’s decision. 

For buyers: you may think you have a deal — but there’s a real chance the resort could swoop in and buy the timeshare instead, nullifying your purchase. 

As a result, resale timeshares subject to ROFR often trade at lower price points than standard developer-sales, because the second-hand buyer must accept this added risk and uncertainty.