Disney exercised ROFL heavily again this week!

[4greatboys]

You cant offer more money once Disney has decided to exercise its rofr and buy it back. You and the seller already agreed on a price and then it goes to Disney. If they decide to buy it back then thats it, no more offers.

 

[POLLY ANN]

Oh, so if Disney buys it back, then she would just have to find another contract to purchase and offer a higher price for that one to guarantee getting the contract. Correct?

I'm so glad I already own enough because this would make me go crazy!! And, now I know why people just buy directly from Disney.

 

[JOC]

Hi 4greatboys,
It seems that you can offer more per point even if Disney exercises their ROFR, as that's what Poorman did and he was able to get a BWV contract the second time around.

 

[4greatboys]

JOC--that just seems odd to me. The buyer makes and offer to the seller and then the seller accepts. It then goes to Disney for final approval. I was under the understanding once the price was agreed on and if Disney wanted to exercise rofr and buy it back that the buyer couldnt make any other offers. I could be incorrect, having both my resales go thru and Im definately not an expert.
Just seems like lots of ppl would then be makking counter offers and getting the resales that are going back to Disney. Maybe one of our DVC experts here would have the answer for sure.

 

[DebbieB]

I think Disney may allow counteroffers, but they don't have to the way the contract is written. They do it as a courtesy, not as a requirement.

 

[Doctor P]

Actually, from what it sounds like, Disney exercise their ROFR, BUT then the seller has the option of refusing to sell (negating both offers, in effect). The buyer then comes in with a new offer that is higher, which is then presented to Disney. In every case that has been discussed, it has been mentioned that the seller refused Disney's offer.

 

[DebbieB]

Here is how the contract reads, I'm looking at mine dated 1/5/99:

Before PURCHASER (exact puncuation) may resell PURCHASER's Ownership Interest to a third party, PURCHASER is required to offer it to DVD upon the same terms and conditions, including financing, as is offered by or to the third party. Accordingly, PURCHASER must notify DVD in writing no less than thirty (30) days in advance of the proposed closing date of PURCHASER's intent to sell and must include a copy of the proposed transaction reducing to writing in all respects. Upon receipt of such written notice, DVD shall determine prior to the closing date whether it wishes to exercise its right of first refusal. If DVD elects to exercise its right of first refusal, DVD shall notify the PURCHASER in writing of such election, and the purchase of DVD shall be closed on or before the proposed closing date.
If DVD fails to notify PURCHASER of its election to exercise its right of first refusal prior to the proposed closing date, PURCHASER may proceed to close the transaction with the third party upon the original terms and conditions offered by or to the third party. DVD's right of first refusal is a covenant that runs with the land and shall always be a requirement binding on any sucessor in title to PURCHASER.

-------------------------------
sounds to me that they could immediately close on it if they choose.

 

[Doctor P]

Yes, that sounds like it, but it also sounds like DVD has a limited time frame in which to respond and that one does not actually have to wait for a reply before closing (if you follow the rules). Very interesting.

 

[torismom]

Originally posted by rphjr
I'm waiting for a VB resale. I offered about $58.00 a point with the seller paying the 2003 maintenance fee. It's 150 points with 60 banks left from 2002 and all of 2003. It's a december use year. After reading all this I'm not sure if it's going to get by Disney, but I haven't heard of a VB being bought up. I currently have 310 points at OKW and has buying VB to use when we want to go there every 2 to 3 years, but also for cheap points to use on cruises and trades and off season visits to WDW. Anyone think this will go through?

I had a simliar deal that I offered on a small VB contract. There were no points for 2003.Disney bought that one back last month.

This week Shontell Crawford notified me that the 80 point BWV contract I made an offer on was mine.Granted it was 74.00 a point. I had the cash for this and so to me it is a good deal.

we are very excited to become DVC owners and look forward to adding on.LOL

 

[Connears]

We bought add on points at HHI in the fall @ $70 a point thru timesharesbyresale and had no problems. Glad we did it then! Didn't know disney would start buying up with FOFR.
Connears

 

[timC]

It really seems to be a sellers market for DVC. I just did some quick math on my BWV contract that I bought in 1999. If I sold it now, at $72 I'd actually turn a profit, get all of my dues back, and keep 4 years of vacation memories. Four years of free vacations...cool.

 

[Richyams]

Think about those of us that bought with free passes.

I can actually say that I paid for eight years of park passes and got DVC membership for free. Anything I sold it for today would be pure profit.

Really, considering that all we did was pay for eight years of passes, we got 70-80- nights in a GV, a cruise, a weekend at The Plaza, and a few assorted weekend stays for absolutely nothing.

Luckily, we moved to Fla, now with the seasonal pass, we get our vacations for dues.

Really, the idea of offering more than the asking price today, is a good idea. If buying direct from Disney is a good idea, even paying $80 per point on a resale for a sold out resort, certainly can not be looked at as a bad move.

 

[CarolMN]

Originally posted by timC
It really seems to be a sellers market for DVC. I just did some quick math on my BWV contract that I bought in 1999. If I sold it now, at $72 I'd actually turn a profit, get all of my dues back, and keep 4 years of vacation memories. Four years of free vacations...cool.

If we hadn't bought in 1999 (250 points at $65 each), we most likely would not have gone to WDW in 2002 and wouldn't be going this year, either. (Decreased discretionary income due to early retirement and market reverses). Thanks goodness we did! I still love those trips to visit Mickey!

That said, I cannot say that if we sold at $72, we would turn a profit, let alone get 3 - 4 years of dues back. Maybe my math is rusty or maybe I am assuming that the broker's commission is a lot higher than it really is? Or maybe you bought a really cheap resale contract? LOL