What Is the Right of First Refusal on a Timeshare?
The Right of First Refusal (ROFR) is a contractual clause in most timeshare purchase agreements that gives the resort developer the right to match any offer made by a third-party buyer and take back your timeshare at the sale price. If the developer exercises ROFR, the sale to your intended buyer does not go through; instead, the developer takes ownership. Most major resort developers include ROFR clauses and exercise them on the majority of resale attempts, particularly at premium-brand properties.
How ROFR Works
- You find a buyer willing to purchase your timeshare for $X
- You submit the sale paperwork to the developer for ROFR review
- The developer has 15-45 days (varies by contract) to decide
- If they exercise ROFR: The developer takes ownership at price $X. Your buyer gets nothing. You get $X minus any closing costs.
- If they waive ROFR: The sale proceeds to your buyer. (This is rare for most developers.)
Developer ROFR Behavior
ROFR-exercise rates vary considerably across developers and property types. Premium-brand deeded resorts (particularly high-demand Hawaii, ski, and coastal properties) see ROFR exercised on the majority of resale attempts, because the developer wants to keep resale prices high to protect new-sale pricing. Points-based developers and secondary-market brands exercise ROFR less consistently, and behavior varies by property, week, and season. If you are considering a resale exit, ask your broker how frequently your specific developer has exercised ROFR on comparable listings in the past 12 months.
ROFR Can Actually Help Your Exit
Counterintuitively, a developer exercising ROFR can achieve the same goal as a cancellation: the timeshare is no longer in your name, and your maintenance fee obligation ends. Some exit strategies intentionally trigger ROFR by listing the timeshare at a low price, knowing the developer will take it back. This approach works best when your goal is to simply end ownership, not to profit from a sale.
Need help navigating ROFR or planning your exit strategy? Call (888) 530-7268 for a free consultation.
Related Questions
- How to Get Out of a Timeshare Without a Lawyer
- How Much Does Timeshare Exit Cost in 2026?
- How to Choose the Best Timeshare Exit Company in 2026
Need Personalized Advice?
Every timeshare situation is different. Call (888) 530-7268 for a free, no-obligation consultation where a timeshare exit specialist reviews your specific contract and recommends the best exit strategy for your situation.
Request Free Consultation