Anyone made it through (or not made it through) ROFR recently? - Section III

[Donald is #1]

I think mine may have gotten lost in the shuffle somewhere!

50 pt OKW $75/pt - March Use - 50 banked '08 pts, all '09 pts, all '10 pts

Buyer pays closing and '09 MF

Submitted ~7/7/2009

Oops sorry about that.

I'll fix it now.

 

[Donald is #1]

I think mine may have gotten lost in the shuffle somewhere!

50 pt OKW $75/pt - March Use - 50 banked '08 pts, all '09 pts, all '10 pts

Buyer pays closing and '09 MF

Submitted ~7/7/2009

Is this an original or extended contract?

 

[KristenL]

Is this an original or extended contract?

Oops! It's original. Sorry about that!

 

[Opie100]

How would that make a distinction between rental contracts and DVC owner/users?

I'm sorry, I don't understand your question.

 

[mickeymit]

I'm sorry, I don't understand your question.

My understanding (I am admittedly new to DVC) is that there may be instances where Disney acts to take back points (via ROFR) that have a history of being rented commercially. I have no evidence of this, however.

I guess I don't understand your comment. Aren't points just points when they are being sold? How do they have a history at that juncture, or at least a history that Disney cares about since they are being sold to a new owner?

 

[Opie100]

My understanding is that Disney may be more inclined to reclaim points during ROFR from an owner that used the membership for commercial purposes. (I presume preventing cycles of ownership to those not using the points as intended.)

 

[dznymom1]

I am selling a 75 pt BWV contract that just passed ROFR. Dec Use year, 74 2008 points, all 2009 points. $85 pp, buyer pays closing and MF are prorated. Submitted to Disney on 6/11 or 6/12. Passed on 7/13. They took the full 30 days! Did I forget any info?

 

[mickeymit]

I am selling a 75 pt BWV contract that just passed ROFR. Dec Use year, 74 2008 points, all 2009 points. $85 pp, buyer pays closing and MF are prorated. Submitted to Disney on 6/11 or 6/12. Passed on 7/13. They took the full 30 days! Did I forget any info?

thanks for the update...

They are making this painful, but at least it passed

 

[mickeymit]

My understanding is that Disney may be more inclined to reclaim points during ROFR from an owner that used the membership for commercial purposes. (I presume preventing cycles of ownership to those not using the points as intended.)

I think I understand, but in order for this to make sense, Disney must be exercising ROFR on purchasers who are using the points for commercial purposes. If they exercised it on sellers, the sellers would not be harmed in any way; it would make no sense.

 

[prljamjeep]

Ok, my second attempt since first didn't pass ROFR. 220 points at SSR, March use year, $68/pt, 162 points in '10 & all points in '11, buyer pays closing costs

 

[vzdisnuts]

I think I understand, but in order for this to make sense, Disney must be exercising ROFR on purchasers who are using the points for commercial purposes. If they exercised it on sellers, the sellers would not be harmed in any way; it would make no sense.

Mickey and Opie,

Actually, now I get the concept better. So the presumption might be that if the "buyer" has a reputation for commercial use of the points, then Disney would be more inclined to exercise ROFR. In any event, the seller is whole because they'll still get their $$. So, it would be interesting to correlate the number of exercised ROFRs to whether the buyers are members or non-members. Notwithstanding the possibility of a really low price triggering ROFR, we'd then expect more ROFRs for member buyers versus non-member buyers if the commercial use theory holds.

I still think the use year thing holds more weight. Seems like more June use year are being ROFRd. I won't bore everyone with my theories on that! We'll see...our pending sale is for December and we're non-members.

Trying to figure this all out makes my head hurt!

Cheers!!

 

[DVCGeek]

I still think the use year thing holds more weight. Seems like more June use year are being ROFRd. I won't bore everyone with my theories on that!

Sorry, gotta' bite: What are your theories on UY vs. ROFR?

 

[Opie100]

I think I understand, but in order for this to make sense, Disney must be exercising ROFR on purchasers who are using the points for commercial purposes. If they exercised it on sellers, the sellers would not be harmed in any way; it would make no sense.

I've read that points that are bought and sold repeatedly stand a greater chance to be bought back. Perhaps it is due to the concern that the seller may stand to benefit financially from the real estate transaction in some way (title company, broker, etc.).

 

[CMOORE185]

Sorry, gotta' bite: What are your theories on UY vs. ROFR?

Maybe June is the most popular use year and DVC feels they can resell these points.

 

[vzdisnuts]

Sorry, gotta' bite: What are your theories on UY vs. ROFR?

My theory is not well developed, is purely speculative, and lacks data to support it, but...

I know that lots of Europeans prefer to vacation in FL in the summer and the value of the Euro vs. the dollar is high right now (and has been for several months), thus making something like DVC more of a bargain because of the foreign currency exchange rates. If the theory holds, we might expect to see more ROFRs exercised for late spring and summer month use years while the currency exchange rate advantage exists and the demand is high.

Once again though, it is probably more likely that I'm full of beans and that there is no logical (predictable??) explanation for what gets ROFRd and when.

 

[vzdisnuts]

I've read that points that are bought and sold repeatedly stand a greater chance to be bought back. Perhaps it is due to the concern that the seller may stand to benefit financially from the real estate transaction in some way (title company, broker, etc.).

...making it even more of a bummer for the poor buyer (how was I to know that the seller was up to shenanigans with their points)!

 

[mickeymit]

I've read that points that are bought and sold repeatedly stand a greater chance to be bought back. Perhaps it is due to the concern that the seller may stand to benefit financially from the real estate transaction in some way (title company, broker, etc.).

OK, I'm gonna drop this now. I can see no viable economic justification for Disney to come in and purchase points simply because the points have been bought and sold repeatedly. I think there is an argument that could be made for them monitoring the buyers and forcing commercial use purchasers to pay market or above market rates (although I'm not sure if that would be legal). What makes the whole thing somewhat comical is that there appears to be a randomness to the whole process. Most likely there is some sort of methodology that Disney employs (not below a certain price threshold, buying up inventory to fulfill rental contracts, a ready buyer for a particular resort and/or UY, etc.), it just looks random from the outside.

 

[BWV Dreamin]

Am posting this for my brother who just put in an offer for OKW (2042), 190 pt. Aug UY. All '08 pts. banked. All '09, '10 pts. $55/pt. , seller to pay closing and GMAC fee. He is waiting to see if seller will accept the offer.

 

[silmarg]

Am posting this for my brother who just put in an offer for OKW (2042), 190 pt. Aug UY. All '08 pts. banked. All '09, '10 pts. $55/pt. , seller to pay closing and GMAC fee. He is waiting to see if seller will accept the offer.

OMG. If this were to pass it would be a steal! A loaded contract with no closing costs at $55/pt? Sign me up!

Did the seller accept this price? Is it into DVC for ROFR?

 

[snappy]

The only thing that would make it sweeter would be if it was an extended contract.