Question on ROFR and Disney buyback...

Discussion in 'Purchasing DVC' started by HeatherPage, Sep 8, 2003.

  1. HeatherPage

    HeatherPage <font color=darkcoral>Proud mommy, wife and WDW fa

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    Okay Doc, again not wanting to step on toes with questions not supposed to be asking, just trying to get some information. If I have a buyer for my DVC contract and it is submitted to Disney for ROFR, and they excercise that right, does Disney take care of the closing costs? Anyone know the answer to this question?

    Thanks for insight!
     
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  3. WebmasterDoc

    WebmasterDoc Administrator Administrator

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    They will purchase at the same conditions of the offer. If the buyer wsa to pay closing costs, they would pay closing costs as the buyer. If the seller was supposed to pay closing costs, the seller will still pay closing costs.

    The seller will receive exactly the same amount whether ROFR is exercised or not. The only question for the seller is who ends up buying the contract. Once an offer has been submitted and accepted, the buyer will get what he/she has already accepted.

    If a buyer is eager to sell a contract, they can list it for a lower price, get a quick offer to buy and submit it to DVC for ROFR. I'd think a price of $60 for BWV would get a sale very quickly (most likely thru ROFR and DVC).

    Good Luck!
     
  4. JudyS

    JudyS Disney Lover, DVC Member, and Timeshare Fan!

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    Doc said, regarding Disney's ROFR:

    My question is, "If the seller was going to pay the closing costs, how does Disney know how much in closing costs to charge the seller?" Does Disney estimate how much the seller would have paid in closing costs, if the resale had gone to the original bidder instead of back to Disney? Or does Disney subtract their own expenses related to closing from the amount they give the seller, and if so, how does the seller know that Disney charged them a fair amount?
     
  5. Doctor P

    Doctor P <font color=navy><font color=navy>Chocolate covere

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    Uhhhh.....I'm not sure what the fuss is. The transaction, as I understand it, works exactly the same for the seller regardless of buyer. If the seller is paying the closing costs under the original contract, then the seller knows (or should know) what those closing costs are and the services they will use. You just close the contract the same way as you were going to, and charge Disney the same closing costs. Remember, on a resale, Disney does not do the closing per se (though they are obviously a party involved).
     
  6. WebmasterDoc

    WebmasterDoc Administrator Administrator

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    If the offer was for $10,000 and the seller was to pay closing costs, DVC will pay the seller $10,000 and expect the seller to pay closing costs- whatever they may be. Closing costs are not paid to Disney, they are paid to the county and any other entity involved in that process (attorneys, title insurance co., etc.)

    If the buyer had agreed to pay closing costs, the same principle applies except Disney will handle all expenses for that process. The seller will still get the same $10,000 already agreed to in the original offer.
     

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