Disney currently waiving ROFR...

[Yankee626]

How long does Disney have for ROFR ? Is there a time limit ?

 

[DaveNan]

Disney may keep a very small inventory of points on "sold out" resorts, but in general they do not want their money tied up in those points. They exercise ROFR when they have buyers lined up for those points. Since the offices have been closed there have been no buyers. I suspect they are hoping for a surge of pent up demand to hit once they reopen the sales office. That being said, if I were them I would delay passing on ROFR until I had to. That way they have their pick of a large number of contracts to match with the demand they get from folks wanting to buy points. They can pick the ideal size at the lowest cost. Unlike us, Disney can split contracts into smaller ones when they buy and resell, as well as switch UY (a change they did in early 2019). So once the sales offices open, they can cherry pick from lots of contracts for the best deal (price and point status).

 

[DaveNan]

How long does Disney have for ROFR ? Is there a time limit ?

Either 30 days or up to when the contract specifies for closing, which ever is longer. So when the contracts states "closing in 60 days" or "closing after 10/1/20", they have longer than 30 days.

 

[badeacon]

Either 30 days or up to when the contract specifies for closing, which ever is longer. So when the contracts states "closing in 60 days" or "closing after 10/1/20", they have longer than 30 days.

Isn't it that Disney HAS to have 30 days to decide before closing but after 30 days one can proceed with closing , but Disney can still exercise ROFR anytime until contract is closed?

 

[FinallyFL]

The estoppel certificate is required to close and it also comes from Disney so a contract can't be closed without Disney doing its part.

 

[hlhlaw07]

Isn't it that Disney HAS to have 30 days to decide before closing but after 30 days one can proceed with closing , but Disney can still exercise ROFR anytime until contract is closed?

You had it partly correct. You have to give Disney at least 30 days to decide. If you give them more by scheduling closing more than 30 days away, then you give them that many days. You can only proceed to closing once your closing date comes (given that you have given them at least 30 days) and Disney has either waived their right or they have failed to do so by your closing date, which would act as an effective waiver of the right. 30 days passing doesn’t mean anything. If your closing is scheduled at 60 days, then you have to wait 60 days, you can’t close sooner than the date the contract provides unless Disney waives ROFR sooner.

The estoppel certificate is required to close and it also comes from Disney so a contract can't be closed without Disney doing its part.

This is true, but Disney failing to provide an estoppel certificate does not extend their ROFR. If they do not exercise ROFR by the scheduled closing date, they have effectively waived ROFR and some other administrative requirement to close does not revive their ROFR.

 

[badeacon]

You had it partly correct. You have to give Disney at least 30 days to decide. If you give them more by scheduling closing more than 30 days away, then you give them that many days. You can only proceed to closing once your closing date comes (given that you have given them at least 30 days) and Disney has either waived their right or they have failed to do so by your closing date, which would act as an effective waiver of the right. 30 days passing doesn’t mean anything. If your closing is scheduled at 60 days, then you have to wait 60 days, you can’t close sooner than the date the contract provides unless Disney waives ROFR sooner.



This is true, but Disney failing to provide an estoppel certificate does not extend their ROFR. If they do not exercise ROFR by the scheduled closing date, they have effectively waived ROFR and some other administrative requirement to close does not revive their ROFR.

Thanks for the explanation. First time I have ever completely understood the process.
Now I will give to get my head around why brokers put closing in contract for 60, 75 ,90 and even 125 days and this is not because of a delayed closing. Why not closer to 30 days?

 

[hlhlaw07]

Thanks for the explanation. First time I have ever completely understood the process.
Now I will give to get my head around why brokers put closing in contract for 60, 75 ,90 and even 125 days and this is not because of a delayed closing. Why not closer to 30 days?

They do it because they are trying to play nice with Disney. You can tell them your offer is contingent upon a 30 day closing in the contract. Some will let you do it, and others are too worried about upsetting Disney.

 

[dfan_welcomehomeall_19]

Hi all. Just wondering if anyone has had a small contract (<30 points) in which Disney exercised ROFR. In looking at the ROFR threads the smallest contract I saw taken in the past 3 years was 60 points and just wondering if anyone experienced otherwise. Does DVD shy away from small point contracts in general? I know it’s a non-issue since it appears Disney has been waiving ROFR on all contracts the last 3 months but just curious. Thanks for your input!

CCV direct
SSR (pending ROFR)

 

[poofyo101]

Hi all. Just wondering if anyone has had a small contract (<30 points) in which Disney exercised ROFR. In looking at the ROFR threads the smallest contract I saw taken in the past 3 years was 60 points and just wondering if anyone experienced otherwise. Does DVD shy away from small point contracts in general? I know it’s a non-issue since it appears Disney has been waiving ROFR on all contracts the last 3 months but just curious. Thanks for your input!

CCV direct
SSR (pending ROFR)

They do not buy back contracts usually above a certain price point. Small contracts cost more usually per price point. That is why they do not buy them back, not because they shy away from small contracts.

 

[dfan_welcomehomeall_19]

They do not buy back contracts usually above a certain price point. Small contracts cost more usually per price point. That is why they do not buy them back, not because they shy away from small contracts.

Thanks! That makes sense. I figured that may be the driver. I guess I’m just suprised that they do not look for small add-on contracts to sell directly. I know they are slightly higher per point but still leaves them a good potential margin. My SSR pending is $105 per point and direct they are selling $165. I know the $105 is on the higher end of the range for SSR. In some other threads I always read how thirsty members (like me ) are to add on small contracts and I thought they would look to seize the opportunity. I guess the question is can they split up a bigger contract into multiple contracts? If so that makes more sense to me. I also know they recently implemented they can change UY of a ROFR exercised contract. Thank you for the info. Definitely makes sense what you are saying about a ceiling for ROFR per per point.

 

[poofyo101]

Thanks! That makes sense. I figured that may be the driver. I guess I’m just suprised that they do not look for small add-on contracts to sell directly. I know they are slightly higher per point but still leaves them a good potential margin. My SSR pending is $105 per point and direct they are selling $165. I know the $105 is on the higher end of the range for SSR. In some other threads I always read how thirsty members (like me ) are to add on small contracts and I thought they would look to seize the opportunity. I guess the question is can they split up a bigger contract into multiple contracts? If so that makes more sense to me. I also know they recently implemented they can change UY of a ROFR exercised contract. Thank you for the info. Definitely makes sense what you are saying about a ceiling for ROFR per per point.

They can break them up into smaller contracts.

 

[dfan_welcomehomeall_19]

They can break them up into smaller contracts.

That explains it! Thanks!!

 

[Grumpy by Birth]

They can break them up into smaller contracts.

They can. We can't.

I'm always amazed when I see a single contract for sale with 500 or even 1000+ points. Why didn't the DVC guide offer advice to split those contracts into 5 or 10 x 100-200 point contracts? Sure, they are not highlighting selling your contract because you are going to want it FOREVER! But there are also matters such as willing or gifting them to multiple children that this would facilitate.

 

[sethschroeder]

They can. We can't.

I'm always amazed when I see a single contract for sale with 500 or even 1000+ points. Why didn't the DVC guide offer advice to split those contracts into 5 or 10 x 100-200 point contracts? Sure, they are not highlighting selling your contract because you are going to want it FOREVER! But there are also matters such as willing or gifting them to multiple children that this would facilitate.

Guide who doesn't understand, doesn't want to rock boat, doesn't want to add extra cost on the total cost that the guide doesn't get paid on anyways, or possibly incentives to the guide for a larger single contract.

Plus it might also be something where they avoid it to make resale harder?

 

[CastAStone]

Hi all. Just wondering if anyone has had a small contract (<30 points) in which Disney exercised ROFR. In looking at the ROFR threads the smallest contract I saw taken in the past 3 years was 60 points and just wondering if anyone experienced otherwise. Does DVD shy away from small point contracts in general? I know it’s a non-issue since it appears Disney has been waiving ROFR on all contracts the last 3 months but just curious. Thanks for your input!

CCV direct
SSR (pending ROFR)

I’m sure if the price was low enough they would. Hard to imagine anything selling through a major DVC focused site selling at a price low enough to get there though.

 

[sethschroeder]

I’m sure if the price was low enough they would. Hard to imagine anything selling through a major DVC focused site selling at a price low enough to get there though.

Fidelity can have crazy deals at times. Didn't the $100 point BLT contract go through a main site as well? Although I suppose you mean if a contract was like $30/point.

 

[CastAStone]

Fidelity can have crazy deals at times. Didn't the $100 point BLT contract go through a main site as well? Although I suppose you mean if a contract was like $30/point.

www.FidelityResales.com is a weird outlier on the DVC sites. As far as I can tell they’re the only site widely recognized as legitimate that also sells non-DVC timeshares. I haven’t dealt with them but it seems like they aren’t as focused on maximizing seller revenue as the other sites.

 

[sethschroeder]

www.FidelityResales.com is a weird outlier on the DVC sites. As far as I can tell they’re the only site widely recognized as legitimate that also sells non-DVC timeshares. I haven’t dealt with them but it seems like they aren’t as focused on maximizing seller revenue as the other sites.

www.Vacatia.com I think is too right? Doesn't Disney use them to point people to?

I remember reading something about it simply as I was going through looking up sites.

 

[CastAStone]

www.Vacatia.com I think is too right? Doesn't Disney use them to point people to?

I remember reading something about it simply as I was going through looking up sites.

Never heard of it. Huh.