Can Disney Redistribute ROFRed Contract Points?

[wdrl]

After Disney ROFRs contracts, can it then redistribute the points in those contracts and sell the points in whatever size it wants? For example, if Disney ROFRs a contract containing 300 points, can it then sell those points as three 100-point contracts? Or is it then stuck with a 300-point contract that can only be sold as a 300-point contract?

I know that we, as individuals, can't break up our contracts. But does Disney, as the developer, have additional regulatory or statutory rights that we don't have as individuals?

I'm certain the points cannot change UY because the points are tied to a specific Unit, and each Unit has a specific UY. Or am I wrong about this?

Thanks!

 

[jekjones1558]

Disney cannot reassign use year but, unlike us, Disney can break up a ROFRed contract into whatever size contracts it chooses.

 

[DenLo]

Has anyone had Disney break up a contract? I've seen threads where it was said Disney could not break up a contract. So it'd be nice to know if Disney actually did this for a member. And if Disney can break up contracts wouldn't it work in their favor to buy some of those really large contracts out there on the resale market since their prices are really low versus bothering to ROFR smaller contracts for a higher price?

 

[drusba]

No you cannot break up your own contract into more than one and one contract must be sold as a whole if you resell it. Note, each purchase is a different contract for the purpose of that rule so if you have an original contract and an add-on, the add-on can be resold separately. Disney, when it purchases contracts through ROFR does then break up that particular contract and sell to new purchasers in any block of points it desires but it will not otherwise do it for an owner. And Disney does sometimes purchase large contracts at the lower prices with ROFR to do exactly that. What it does not do is just purchase it from the seller absent there being a buyer who has made an offer so it can exercise ROFR and the problem with very large contracts is that there is often no buyer making an offer for a long time. Could it do otherwise and start becoming a direct purchaser in the resale market? Yes but it has chosen not to and there are probably a variety of reasons for that including that Disney does not want to become the party setting resale prices by being a direct purchaser

 

[ClarabelleCow]

I so wish they could adjust your contracts, I have 4 contracts totalling 300 points, one contract 196, 24, 30, and 50. All same resort and same use year. I would love to have two contracts of 150 each. I would think on their end, it would be easier to maintain them also, but probably because of deeds, etc., they could not make the adjustmetns.

 

[bookwormde]

Clarabelle,

You could probably get enough extra for the 3 samller contracts to pay the sales expense and replace them with 1 104 point contract (or larger). I have never seen a 24 point contract.

Yes disney redistributes contract points and actual points available for any UY/resort between contracts.

bookwormde

 

[Dean]

The provision for DVC to break up ROFR contracts in written into the POS but there are no other ways to do it. For an individual, the only option would be to sell and buy something else.

 

[Jason@dvcstore]

I so wish they could adjust your contracts, I have 4 contracts totalling 300 points, one contract 196, 24, 30, and 50. All same resort and same use year. I would love to have two contracts of 150 each. I would think on their end, it would be easier to maintain them also, but probably because of deeds, etc., they could not make the adjustmetns.

I have never heard of a 24 point contract either. I thought a 25 point contract was the smallest contract possible. Guess not.

Jason

 

[Sandisw]

Has anyone had Disney break up a contract? I've seen threads where it was said Disney could not break up a contract. So it'd be nice to know if Disney actually did this for a member. And if Disney can break up contracts wouldn't it work in their favor to buy some of those really large contracts out there on the resale market since their prices are really low versus bothering to ROFR smaller contracts for a higher price?

Disney won't break up a contract that you own. If you buy a resale with 300 points, it will always be 300 points, unless you sell it and Disney buys it back via ROFR.

Members can't ask to change the size of the contract. However, if Disney has a member waiting for say 50 BCV points, with an April UY, they could ROFR a BCV April UY contract for 100 points and then sell 50 of those to a member, leaving 50 points in their reserve to sell in the future.

 

[ClarabelleCow]

when you are already an owner you can (or could) buy any amount you wanted, so I had 196 points (bought resale from TTS), and added 24 to make it an even 220, then continued to add on till I got to 300. What I would like is two contracts one for each kid, but that would mean selling 104, and buying 196! ouch!

 

[Dean]

when you are already an owner you can (or could) buy any amount you wanted, so I had 196 points (bought resale from TTS), and added 24 to make it an even 220, then continued to add on till I got to 300. What I would like is two contracts one for each kid, but that would mean selling 104, and buying 196! ouch!

Like Jason, I've never heard of DVC being willing to sell under 25 points, they likely had to get special permission to do so but I can see where they would. I doubt they could going forward though.

 

[pycees312]

No you cannot break up your own contract into more than one and one contract must be sold as a whole if you resell it. Note, each purchase is a different contract for the purpose of that rule so if you have an original contract and an add-on, the add-on can be resold separately. Disney, when it purchases contracts through ROFR does then break up that particular contract and sell to new purchasers in any block of points it desires but it will not otherwise do it for an owner. And Disney does sometimes purchase large contracts at the lower prices with ROFR to do exactly that. What it does not do is just purchase it from the seller absent there being a buyer who has made an offer so it can exercise ROFR and the problem with very large contracts is that there is often no buyer making an offer for a long time. Could it do otherwise and start becoming a direct purchaser in the resale market? Yes but it has chosen not to and there are probably a variety of reasons for that including that Disney does not want to become the party setting resale prices by being a direct purchaser

so if an add on under the same contract defaults does your original contract as well or just the add on?

 

[JimC]

Part of the problem is that each contract -- master and add-on -- represents a separate real estate interest with its own deed. To combine contracts there would need to be a separate closing with a new deed. It is not as simple as reclassifying them in the DVC computer system.

I can only speculate that Disney did not want to permit members to sub-divide their interest in DVC. There may be legal issues as well that affect that decision.

 

[DenLo]

After Disney ROFRs contracts, can it then redistribute the points in those contracts and sell the points in whatever size it wants? For example, if Disney ROFRs a contract containing 300 points, can it then sell those points as three 100-point contracts? Or is it then stuck with a 300-point contract that can only be sold as a 300-point contract?

I know that we, as individuals, can't break up our contracts. But does Disney, as the developer, have additional regulatory or statutory rights that we don't have as individuals?

I'm certain the points cannot change UY because the points are tied to a specific Unit, and each Unit has a specific UY. Or am I wrong about this?

Thanks!

Now I realize that Disney would break up one of these large contracts, if it ever made it to ROFR. The contracts I've been thinking about never seem to get purchased since they are so large.

 

[Dean]

so if an add on under the same contract defaults does your original contract as well or just the add on?

I don't know the legal answer in that situation. My guess is that if it's under one master, it's all or none. What you could do would be to request a deedback of just a portion or sell it for a loss with or without ROFR, assuming you had multiple smaller contracts under the one master.

Now I realize that Disney would break up one of these large contracts, if it ever made it to ROFR. The contracts I've been thinking about never seem to get purchased since they are so large.

My guess is that there are offers but the sellers often don't want to take the lower pp price to make it happen. It's a little like having the most expensive house on a given block, it makes it harder to sell for a "fair price".