Delayed Closings and ROFR

[TroJo]

I just had a seller accept an offer on a contract that I’m almost certain will get taken by Disney during the Right of First Refusal process, however I’ve just been told that the seller has an upcoming trip 3-4 months from now and closing would be delayed.

Just heard from the broker stating that the “transfer process will not start until start until their reservation is completed. This includes the ROFR process.”

Is it typical to delay ROFR in most cases? Or is it more common for the title company to send to Disney for ROFR as soon as the initial sales contracts are signed?

Wondering if I should push to send to ROFR sooner to:
A) Get my deposit back sooner if Disney does take the deal
and
B) I‘ve heard Disney has more of a tendency to pass on delayed closings.

Any input and comments would be greatly appreciated!

 

[TroJo]

Update from the broker when I asked about sending to ROFR right away:
”To my understanding, the reason why the ROFR is delayed is because if Disney does decide to ROFR it, the seller existing reservation would be taken from them as Disney would be buying the ownership back. Therefore, to prevent any mishaps on the back end, reservations have to be completed because starting of the resale process as a whole.”

 

[Meglen]

Did you know about this reservation when making an offer?

 

[TroJo]

Did you know about this reservation when making an offer?

No I was informed after the offer was accepted by the Seller. At this point no contracts have been signed and the broker is asking if I’d like to proceed.

 

[Meglen]

No I was informed after the offer was accepted by the Seller. At this point no contracts have been signed and the broker is asking if I’d like to proceed.

I feel like your money is just going to be held for months and in the end Disney will prolly take it if it was a good deal. The sellers should have been upfront.

 

[kes601]

I’d walk away. If they didn’t disclose the reservation until after the offer was accepted I would not be trusting of the seller.

 

[achinforsomebacon]

The contract can be sent to ROFR as soon as it's signed, with the delayed closing noted. If Disney takes it, they would then have to deal with the same delayed closing (i.e. waiting until the reservation happens) and not get the points from that reservation.

If it's a really good deal and you don't mind the delayed closing, I would move forward with it. ROFR wait times seem to be in the 20-30 day range now so you should know within a month if it's been taken. Disclaimer though - Disney has until the closing date to make a decision so it could potentially take longer. I don't think they make a habit of drawing it out just because they can, but I wanted to make sure to point that out.

One thing to also consider is if this contract is exactly what you want and how difficult it might be to find another one (resort and UY make a big difference). The way the market is now, it's pretty slim pickings. The good deals also get scooped up very quickly. If you found your unicorn contract at a great price, it might be worth rolling the dice.

 

[TroJo]

The contract can be sent to ROFR as soon as it's signed, with the delayed closing noted. If Disney takes it, they would then have to deal with the same delayed closing (i.e. waiting until the reservation happens) and not get the points from that reservation.

If it's a really good deal and you don't mind the delayed closing, I would move forward with it. ROFR wait times seem to be in the 20-30 day range now so you should know within a month if it's been taken. Disclaimer though - Disney has until the closing date to make a decision so it could potentially take longer. I don't think they make a habit of drawing it out just because they can, but I wanted to make sure to point that out.

One thing to also consider is if this contract is exactly what you want and how difficult it might be to find another one (resort and UY make a big difference). The way the market is now, it's pretty slim pickings. The good deals also get scooped up very quickly. If you found your unicorn contract at a great price, it might be worth rolling the dice.

Thank you for the insight. I’m more than willing to wait for the closing, but not willing to wait for months without being sent to ROFR. Would be really aggravating waiting 4-5 months with a $2500 deposit tied up not knowing if Disney could scoop up the good deal while you could have been making offers on others.