DVC sale and ROFR

[tecodis]

What happens to your DVC contract if Disney exercises it's ROFR? Does Disney end up just paying the agreed upon price?

Example: You agree to sell a BLT contract for $85 and Disney chooses to exercise ROFR. Does Disney then pay you the $85 per point and the sale is completed? Would the potential buyer have been out anything at that point?

 

[RobDoc]

ROFR gives Disney the opportunity to purchase the contract at the same terms already agreed to. The seller will get exactly the same amount either way. The buyer will get a refund of any deposit and will need to start all over again.

Hopefully, no one will need to be in a position where they need to sell BLT at $85 - after paying $107 for it.

 

[5forDiz]

What happens to your DVC contract if Disney exercises it's ROFR? Does Disney end up just paying the agreed upon price?

Example: You agree to sell a BLT contract for $85 and Disney chooses to exercise ROFR. Does Disney then pay you the $85 per point and the sale is completed? Would the potential buyer have been out anything at that point?

Prospective buyer does not lose anything; their deposit is returned and they have to go back to finding another resale and attempt to pass ROFR again.

Disney pays the price that prosepctive buyer was attempting to purchase for ( I believe the seller still pays whatever % to the resale agent that they originally agreed upon )

 

[tecodis]

Hopefully, no one will need to be in a position where they need to sell BLT at $85 - after paying $107 for it.

Agreed! That would be on of those moments, no doubt.

However, my dramatic price was part of the thought that if a DVC owner had to desperately raise cash (or get rid of annual dues) they could practically guarantee a sale. If the price agreed is 50% loss to the DVC owner (and they are willing to accept that) then it would definitely sell one way or another - either the buyer gets it or Disney does.

I'm just thinking that if a DVC owner doesn't care about selling price, then how could they ever end up in a situation where they couldn't sell it? There would probably always be someone that would jump on a dirt cheap price. That is something I hadn't thought about when buying but it has potential benefit in rough economic times.