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What does 'ROFR' or 'FROR' mean?


The acronym 'ROFR' itself is relatively common knowledge as it stands for Right of First Refusal. The acronym 'FROR' stands for First Right of Refusal. The concept means that the Developer will match a resale contract instead of letting the interval be sold to another buyer for a price that is lower than acceptable to the Developer. The original condo documents for the timeshare unit must contain the language for the first right of refusal to be exercised. The waiver of the right of first refusal is recorded with the deed when the sale closes.

The process begins when a seller and buyer have agreed on a sale price. Once they enter into a contractual agreement the contract is presented to the Developer. The Developer can then step in and become the Buyer of the unit. The Developer must meet the terms of the contract between the original Buyer and Seller. The Buyer's deposit is fully refunded. The Seller's net proceeds remain the same. This practice allows the developer to maintain a certain price level for the units at their resort. The developer can then re-sell the week through their sales team and make a profit on the inventory.


Not all developers have the right of first refusal (ROFR or FROR) on all of their properties. If you purchase a unit and do not go through the ROFR process the developer could step in at a later time and exercise on the property. This causes frustration with the buyer and seller because the developer is allowed a certain number of days to make a decision and this process keeps the prices stable.

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