Bummed- ROFR got pushed back

[DisneyFirstTimer10]

So we were told by our brokerage company our contract was sent to ROFR on 7/26- and I was getting so excited because we should have found out next week if we passed----Well- instead I got an email today letting me know that Disney didn't start the ROFR till 8/13 due to waiting on a death certificate from the sellers....

I am just bummed because we were thinking we were so close and now pushed backed two weeks- annoyed because I really wanted to book right at 7 months for our May 9th 2015 trip and now thats more than likely not going to happen. Really wanted to do a split stay at BCV studio and AKL one bedroom savannah view.

I know it'll be ok and I should be patient. Most wouldn't understand the disappointment of waiting a bit longer- but I knew I could come on here and vent! Thank goodness for the disboard

Also concerned at how this will impact closing- if it'll be delayed for reasons with the sellers, etc. Guess I have to wait and see

Wonder why we weren't notified sooner that there was a delay.

Edited to add: DH has been amazing and pointed out that we aren't the ones truly suffering. The seller experienced the loss of a loved one, and might be why they are selling. I do not want to come across as uncaring. SIGH

 

[disneynutz]

I would start looking for a backup contract. I don't see why Disney would want a death certificate unless they were going to take the contract.

Bill

 

[DenLo]

I understand the OP's disappointment as resale takes long enough without any quirks. And I hope disneynutz is wrong.

 

[CarolMN]

I would start looking for a backup contract. I don't see why Disney would want a death certificate unless they were going to take the contract.

Bill

Isn't part of the process ensuring the seller actually owns the contract and has a right to sell? Just like they give an accounting of what the contract currently has for points?

You may be correct, but I am not so sure that asking for a death certificate is only because they plan to take the contract.

 

[HarvardAce]

You still have a shot at getting your membership number in advance of your 7-month window (October 9). We didn't get our number until 45 days after ROFR passed, but it took us nearly 30 days to close because it was a foreign seller and there was additional paperwork that needed to be completed and took a long time, and we also waited for our membership number to come in the mail. If you're quicker at closing and call to get your number, you could pull it in a bit and maybe hit the 7-month window.

 

[DisneyFirstTimer10]

Thank you!

I'll keep you updated on how it turns out

Contract is for:

AKV 125pts $76pp Dec UY

46/2013pts
125/2014pts
125/2015ptss

Buyer pays closing and 2014 MFs

 

[agie65]

Isn't part of the process ensuring the seller actually owns the contract and has a right to sell? Just like they give an accounting of what the contract currently has for points?

You may be correct, but I am not so sure that asking for a death certificate is only because they plan to take the contract.

One time I had two contract from same seller in ROFR and Disney advised that there was banked points and that was not mentioned in the contract. So once we finished addendum Disney took the both contract.

 

[disneynutz]

Isn't part of the process ensuring the seller actually owns the contract and has a right to sell? Just like they give an accounting of what the contract currently has for points?

You may be correct, but I am not so sure that asking for a death certificate is only because they plan to take the contract.

There is an estoppel process and letter that Disney provides but I thought that that occurred separate from ROFR and prior to ROFR submission and sales contract preparation.

Hopefully for the OP, my suspicions are incorrect.

Bill

 

[DisneyFirstTimer10]

hmmm. So if they do take it- will they be nice and tell me sooner than 30 days? That would be terrible waiting all that time to find out it didn't pass

 

[chitwndan]

I don't think so. I remember when I was going through ROFR, looking at the taken contracts in the ROFR thread and they were all pretty close to 30 days.

It makes sense on their part. even if they plan on taking yours, they want to wait to see if an even more attractive contract is sent for ROFR in the interim.

 

[nolenbelledavis]

I don't think so. I remember when I was going through ROFR, looking at the taken contracts in the ROFR thread and they were all pretty close to 30 days.

It makes sense on their part. even if they plan on taking yours, they want to wait to see if an even more attractive contract is sent for ROFR in the interim.

Wow. That really sucks!

 

[cvjw]

OP, we had to cancel a great contract after passing ROFR. It was part of an estate, and the beneficiaries (son/daughter) were selling the contract after the passing of their dad. We passed ROFR with no problem, but there were multiple extra forms that had to be filled out with the closing process because the contract was part of an estate. 30 days after receiving the closing documents, and the kids still had not gotten the extra forms filled out - they had to go to court to get them.

Hope you don't also have the same delays if you ever pass ROFR!

 

[Minniesgal]

hmmm. So if they do take it- will they be nice and tell me sooner than 30 days? That would be terrible waiting all that time to find out it didn't pass

Most likely not!

 

[DisneyFirstTimer10]

OP, we had to cancel a great contract after passing ROFR. It was part of an estate, and the beneficiaries (son/daughter) were selling the contract after the passing of their dad. We passed ROFR with no problem, but there were multiple extra forms that had to be filled out with the closing process because the contract was part of an estate. 30 days after receiving the closing documents, and the kids still had not gotten the extra forms filled out - they had to go to court to get them.

Hope you don't also have the same delays if you ever pass ROFR!

Were you able to get your escrow $$ back?

 

[weswife]

I do not know any answers for you. I recently passed ROFR ( Aug 14/14) so I understand where you are coming from. The waiting is the worst and then to be delayed.

I wanted to wish you luck!

 

[KAT4DISNEY]

Were you able to get your escrow $$ back?

If the seller was not able to complete the sale then you as the buyer get deposit money back or mostly likely could choose to apply it to another contract if there was a different one you liked with the broker.

I'm not surprised that DVC wanted proof that the people signing the contract have the right to enter into a sale. A death certificate and either letters testamentary or proof of being a trustee (if the DVC was in a trust) would not be unexpected. Buying from an estate probably adds a potential for some issues but I also wouldn't assume that it automatically means issues.

 

[cvjw]

Were you able to get your escrow $$ back?

Yes, we got our deposit back. There is a close-by date on your original contract that guarantees the contract to be done by that date. We went way past that date, and there was no end in sight. It got to the point that the seller wouldn't return the broker's phone calls, much less get the forms filled out. Once finding this out, we bailed.

There are other contracts out there. We just went to ROFR with a European seller on June 23rd with a 270 point BWV contract. Our points were loaded in our account this past Tuesday - less than 2 months from start to finish with a foreign seller.

A fast closing is predicated on having 2 willing and motivated parties. If you get one that isn't, things can really slow down or go off the tracks altogether.

 

[wdrl]

I'm confused why the broker in this deal is giving Disney more time to decide whether it wants to exercise ROFR. According to the rules of all DVC condo associations, the Right of First Refusal is defined as follows:

Owners or Cotenants desiring to sell their Unit or Ownership Interest must notify DVD in writing no less than thirty (30) days in advance of the proposed closing date of their intent to sell and must include a copy of the proposed transaction reduced to writing in all respects. On receipt of such written notice, DVD may determine prior to the proposed closing date whether to exercise its right of first refusal set forth in this Article 13. If DVD elects to exercise its right of first refusal, DVD must notify the owner or Cotenant in writing of such election, and the purchase by DVD must be closed on or before the proposed closing date. If DVD fails to notify the Owner or Cotenant of its election to exercise its right of first refusal prior to the proposed closing date, then the Owner or Cotenant may proceed to close on the transaction with such bona fide third party. . . ."
​

Many people have the mistaken impression that they must wait 30 days before they can set a closing date for their transaction. A broker could notify Disney of a pending transaction and inform it that closing would be done in 31 days. If Disney does not exercise its Right of First Refusal by the proposed closing date, then it has lost its right.

Although Disney must be given no less than 30 days to decide whether it wants to exercise ROFR, the wording of the condo declarations permits Disney to exercise ROFR any time before the proposed closing date. For example, if a seller wants to delay closing until after they have taken one final vacation using the points 6 months from now, then legally Disney could exercise ROFR the day before the closing. Disney has never taken this approach, but it would be within its legal right to do so.

 

[supersnoop]

I'm confused why the broker in this deal is giving Disney more time to decide whether it wants to exercise ROFR. According to the rules of all DVC condo associations, the Right of First Refusal is defined as follows:

Owners or Cotenants desiring to sell their Unit or Ownership Interest must notify DVD in writing no less than thirty (30) days in advance of the proposed closing date of their intent to sell and must include a copy of the proposed transaction reduced to writing in all respects. On receipt of such written notice, DVD may determine prior to the proposed closing date whether to exercise its right of first refusal set forth in this Article 13. If DVD elects to exercise its right of first refusal, DVD must notify the owner or Cotenant in writing of such election, and the purchase by DVD must be closed on or before the proposed closing date. If DVD fails to notify the Owner or Cotenant of its election to exercise its right of first refusal prior to the proposed closing date, then the Owner or Cotenant may proceed to close on the transaction with such bona fide third party. . . ."
​

Many people have the mistaken impression that they must wait 30 days before they can set a closing date for their transaction. A broker could notify Disney of a pending transaction and inform it that closing would be done in 31 days. If Disney does not exercise its Right of First Refusal by the proposed closing date, then it has lost its right.

Although Disney must be given no less than 30 days to decide whether it wants to exercise ROFR, the wording of the condo declarations permits Disney to exercise ROFR any time before the proposed closing date. For example, if a seller wants to delay closing until after they have taken one final vacation using the points 6 months from now, then legally Disney could exercise ROFR the day before the closing. Disney has never taken this approach, but it would be within its legal right to do so.

You're correct, and I've even brought it up, too. But, practically speaking, the title company needs the estoppel to complete the sale, and that won't be provided until after Disney waives ROFR. You could close without that, but you'd risk a dispute post-closing of the contract specifics.

Then, in the situation presented here, it boils down to "a copy of the proposed transaction reduced to writing in all respects." If you submit a transaction that says Joe is the seller, but Joe isn't listed as the owner, Disney is going to say, fix it and come back. Their clock doesn't start until a complete and accurate deal is presented.

 

[DisneyFirstTimer10]

On July 26th I received the following

The Disney Vacation Club package that you purchased was sent to Disney for Right of First Refusal TODAY. Disney has 30 days for their ROFR and will notify us as soon as they decide. Upon notification, your associate will notify you either via e-mail or phone.


And yesterday......Heres the email I got from the resale broker


I received an email from Disney with an update on ROFR for your file. Disney has the effective start date for ROFR as 8/13/14. Disney was waiting on a death certificate from the sellers file to move forward.