Disney Paused ROFR closings

[Rylie Grite]

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[CarolMN]

Don't know, but assume it is all contracts because the sales offices are closed. It's a good bet that the employees who handle ROFR & transfer processes are furloughed.

Sorry for everyone in this situation. It's tough enough to wait for the normal process without having to worry about missing out on future bookings or loss of points. Hoping rugular processing resumes soon.

 

[bookwormde]

Listed a contract in Jan and accepted an offer. I had a reservation using points from that contract for Easter week so the contract stated the closing wouldn't happen until after April 17. Disney exercised ROFR on my contract back in Jan. Just reached out to them about closing paperwork and got this back: "All contracts currently in process have been placed on hold until we are able to return to the office and back to our normal business operations. "

Anyone know if this is all closings and transfers or only the ones DVC is buying back?

I though DVD has a specific time frame in which they had to exercise (notice and complete) ROFR?

 

[_auroraborealis_]

I though DVD has a specific time frame in which they had to exercise (notice and complete) ROFR?

Nope. It is a "suggested" period, but the 30 days is not a rule.

 

[CarolMN]

IIRC, the "rule" is that the agreement must allow at least 30 days for Disney to exercise ROFR, but that if Disney does not decide by then, the purchase can close. Too lazy to look it upright now, but if no one else does, I'll try to do that later today or tomorrow.

Of course, that may not help much if they aren't loading contracts or points right now.

 

[Brianstl]

Listed a contract in Jan and accepted an offer. I had a reservation using points from that contract for Easter week so the contract stated the closing wouldn't happen until after April 17. Disney exercised ROFR on my contract back in Jan. Just reached out to them about closing paperwork and got this back: "All contracts currently in process have been placed on hold until we are able to return to the office and back to our normal business operations. "

Anyone know if this is all closings and transfers or only the ones DVC is buying back?

What was the date for closing on your contract? Disney legally has to complete the purchase by that date or they are in breach of contract. They would be subject to any penalties any other buyer who didn't finish closing by that date. Here is the language from the master agreement:

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.

 

[Brianstl]

Nope. It is a "suggested" period, but the 30 days is not a rule.

Sellers are the ones that have to notify DVD 30 days before closing. Disney actually has up to the closing to date to decide if they wish to exercise ROFR. Master Agreement language:

Accordingly, 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.

The issue here is that DVD had already exercised ROFR. They don't get to go back and decide to reverse their decision or delay closing. They have to close on or before the date in the contract. That appears to be what they are attempting to avoid doing here.

 

[cm8]

Sellers are the ones that have to notify DVD 30 days before closing. Disney actually has up to the closing to date to decide if they wish to exercise ROFR. Master Agreement language:



The issue here is that DVD had already exercised ROFR. They don't get to go back and decide to reverse their decision or delay closing. They have to close on or before the date in the contract. That appears to be what they are attempting to avoid doing here.

Can they claim an act of God and or force of government prevented that from happening?

 

[bookwormde]

Can they claim an act of God and or force of government prevented that from happening?

I would say if all real estate transactions were stopped by the state they might have a basis, but it sounds like resale contracts are still closing so no

 

[E2ME2]

Listed a contract in Jan and accepted an offer. I had a reservation using points from that contract for Easter week so the contract stated the closing wouldn't happen until after April 17. Disney exercised ROFR on my contract back in Jan. Just reached out to them about closing paperwork and got this back: "All contracts currently in process have been placed on hold until we are able to return to the office and back to our normal business operations. "

Anyone know if this is all closings and transfers or only the ones DVC is buying back?

At this point in the transaction, can the broker be of any assistance?
Does the broker still get commission if Disney exercises ROFR ??
Keep us posted on this........
ET

 

[Brianstl]

At this point in the transaction, can the broker be of any assistance?
Does the broker still get commission if Disney exercises ROFR ??
Keep us posted on this........
ET

The broker still gets whatever commission is stated in the contract.

 

[fsulaw2001]

Hopefully this will make some of you feel better.

I've spoken with the person at Disney who is handling ROFR - they are working from home and they are trying to close transactions but it is more difficult. I have one due to close imminently and was told they are trying to get batches of closing documents out still. It is taking them longer because they do not have access to all of our information at home like they would at the office. I suggest no one panic right now, these transactions will close.

Am I mildly annoyed? Sure. I've closed two other DVC contracts in the midst of this mess, both reflected in my DVC accounts, so I know things are progressing both in the real estate world and at DVC.

Like I would in any other real estate transaction, I am trying to be understanding. This will eventually pass. Fortunately, the broker I used has a good contract and being a practicing litigation attorney in Florida, I'm not at that worried since I know how to enforce contracts.

 

[DisMomKY]

We had a contract we are selling that ROFR was waived last Wednesday

 

[E2ME2]

Hopefully this will make some of you feel better.

I've spoken with the person at Disney who is handling ROFR - they are working from home and they are trying to close transactions but it is more difficult. I have one due to close imminently and was told they are trying to get batches of closing documents out still. It is taking them longer because they do not have access to all of our information at home like they would at the office. I suggest no one panic right now, these transactions will close.

Am I mildly annoyed? Sure. I've closed two other DVC contracts in the midst of this mess, both reflected in my DVC accounts, so I know things are progressing both in the real estate world and at DVC.

Like I would in any other real estate transaction, I am trying to be understanding. This will eventually pass. Fortunately, the broker I used has a good contract and being a practicing litigation attorney in Florida, I'm not at that worried since I know how to enforce contracts.

I just sent an email to DVC Resales regarding the ROFR process. It seems there is nothing to worry about and they are still processing ROFR as usual. Reply below:

Hi there - so the process honestly has not slowed down from what we have seen - key workers like those that assist with us listing & closing contracts are still working so if it went in on April 10th it will still usually take up to 30 days so you've got a little more time to find out and as SOON as we hear back we will let you know either way but they are still working to close contracts, and do ROFR, etc.

We had a contract we are selling that ROFR was waived last Wednesday

This ALL makes me feel better - Thanks! & With a Deed Recorded Date of 4/20 I'm feeling better about having access to my points in May.
I don't know why, but I'm still excited about the additional points, regardless of the current pandemic. (maybe seems just a little odd)
We had been searching for the right contract for about a year. I remain cautiously optimistic that we will get to use these points as planned in January 2021
ET

 

[mrte62]

Made an offer last Wednesday on SSR ... just received an email that Disney waived ROFR today ...

 

[Deswank]

Made an offer last Wednesday on SSR ... just received an email that Disney waived ROFR today ...

What broker did you use?! I am hoping we find out today!!

 

[mrte62]

What broker did you use?! I am hoping we find out today!!

DVC Resale Market

 

[Deswank]

DVC Resale Market

Us too. Dang. We submitted Tuesday 4/14.

 

[KAT4DISNEY]

Listed a contract in Jan and accepted an offer. I had a reservation using points from that contract for Easter week so the contract stated the closing wouldn't happen until after April 17. Disney exercised ROFR on my contract back in Jan. Just reached out to them about closing paperwork and got this back: "All contracts currently in process have been placed on hold until we are able to return to the office and back to our normal business operations. "

Anyone know if this is all closings and transfers or only the ones DVC is buying back?

Just a "closing won't happen until after April 17th"? No fixed date? Otherwise I'd say that DVC was in default on the contract. Real estate closings are still happening and DVC should not be exempting themselves from that IMO.

 

[Nappy1380]

Listed a contract in Jan and accepted an offer. I had a reservation using points from that contract for Easter week so the contract stated the closing wouldn't happen until after April 17. Disney exercised ROFR on my contract back in Jan. Just reached out to them about closing paperwork and got this back: "All contracts currently in process have been placed on hold until we are able to return to the office and back to our normal business operations. "

Anyone know if this is all closings and transfers or only the ones DVC is buying back?

This is not all contracts. We had a contract pass ROFR on 3/6 and close on 4/16.