New ROFR guidelines?

[disneymagicRN]

Has anyone heard about the new ROFR rules from Disney? On one of the resale brokers Facebook page, it says that Disney is now saying that the 30 day ROFR is a guideline only, Disney will get to them at their convenience. And brokers are no longer allowed to contact Disney to check on the status of a contract. I can understand that sometimes you are short staffed, life happens, but this seems rude, for lack of a better word appropriate to use on a discussion board lol. Thoughts?

 

[crvetter]

Has anyone heard about the new ROFR rules from Disney? On one of the resale brokers Facebook page, it says that Disney is now saying that the 30 day ROFR is a guideline only, Disney will get to them at their convenience. And brokers are no longer allowed to contact Disney to check on the status of a contract. I can understand that sometimes you are short staffed, life happens, but this seems rude, for lack of a better word appropriate to use on a discussion board lol. Thoughts?

The 30 days has always been a guideline. What the POS dictates it that the seller must give notice, at minimum 30 days, before the anticipated closing date. It doesn't give any guidelines on when in that window DVC needs to respond. So I would suspect if this is true the resale brokers should just stop pushing the estimated closing date 60-90 days out and leave them at 30-40 days out, especially cash (or cash equivalent) purchases.

 

[disneymagicRN]

The 30 days has always been a guideline. What the POS dictates it that the seller must give notice, at minimum 30 days, before the anticipated closing date. It doesn't give any guidelines on when in that window DVC needs to respond. So I would suspect if this is true the resale brokers should just stop pushing the estimated closing date 60-90 days out and leave them at 30-40 days out, especially cash (or cash equivalent) purchases.

So by giving only 30-40 days instead of 60, does that mean if you don't hear from Disney in that timeframe you can proceed with the sale? Or did I completely misunderstand? I don't get how Disney can say don't call us...haven't contracts been lost or misplaced before? It doesn't sound like good business practice.

 

[TexasChick123]

Has anyone heard about the new ROFR rules from Disney? On one of the resale brokers Facebook page, it says that Disney is now saying that the 30 day ROFR is a guideline only, Disney will get to them at their convenience. And brokers are no longer allowed to contact Disney to check on the status of a contract. I can understand that sometimes you are short staffed, life happens, but this seems rude, for lack of a better word appropriate to use on a discussion board lol. Thoughts?

Which broker said this? I agree with @crvetter that they can just move the “closing date” on the contract up. Set the closing date to 35 days from dates of signatures. That’ll sort it out. Once Disney passes, then they can get it closed as quickly as possible.

I would t be surprised if they are going to cut back on the ROFR department and reallocate those ppl elsewhere to save $$$.

 

[SL6827]

Won't they possibly be taking back more contracts with the new rules about use year in effect? I would think if they were, they could possibly be even busier than before?

 

[sndral]

The 30 days has always been a guideline. What the POS dictates it that the seller must give notice, at minimum 30 days, before the anticipated closing date. It doesn't give any guidelines on when in that window DVC needs to respond. So I would suspect if this is true the resale brokers should just stop pushing the estimated closing date 60-90 days out and leave them at 30-40 days out, especially cash (or cash equivalent) purchases.

I wonder if DVC is going to try and penalize resale buyers further by making them wait longer. They had that era where estoppel was taking forever extending the time it took to get access to your points substantially, that stopped (I suspect for legal reasons) perhaps they’ll try to extend the wait via the ROFR process.
If I were a resale broker I’d consider adding language to the contract submitted to DVC along the lines of “sellers Mr. and Mrs. Jones hereby give 30 days notice pursuant to POS section blah blah blah that they intend to sell Resort ABC unit XYZ. If notice that DVC is excercizing it’s ROFR is not received by X/X/XXXX [30 days after submission date] DVC will be deemed to have waived their ROFR and sellers and buyers shall rely on said waiver and take steps to close said contract by X/X/XXXX [31 days after submission date.]”
I’m getting so tired of this cat and mouse game DVC is playing with resale and I’m wondering what is triggering it? Less than forecast sales of direct? If that is the trigger I doubt that the resale market is the cause, more likely they’ve simply priced themselves above what their target market can afford even with financing.

 

[disneymagicRN]

Why is it usually 60 days in the contracts? Is that standard? If it were so easy to put a clause in stating Disney will be deemed to pass after X amount of days, why isn't it already happening? Can Disney legally say that they won't communicate with the broker?

I'm not sure I can say here which broker, but it is a large, reputable one.

 

[Katie L]

I’m getting so tired of this cat and mouse game DVC is playing with resale and I’m wondering what is triggering it? Less than forecast sales of direct? If that is the trigger I doubt that the resale market is the cause, more likely they’ve simply priced themselves above what their target market can afford even with financing.

Aren't the sales reports showing higher sales than ever? Of course, as I remember, maybe that's on a $$ basis not a point basis. Since points are SO.MUCH.MORE.EXPENSIVE, maybe they are selling far fewer POINTS even with record $$$ numbers.

 

[TexasChick123]

Why is it usually 60 days in the contracts? Is that standard? If it were so easy to put a clause in stating Disney will be deemed to pass after X amount of days, why isn't it already happening? Can Disney legally say that they won't communicate with the broker?

I'm not sure I can say here which broker, but it is a large, reputable one.

You can post the name by copying their webpage address. It’ll be hidden when you post if you can’t. I’m on a lot of the FB pages, and I haven’t seen this. That’s why I’m asking.

 

[disneymagicRN]

@texaschick, just think of a lot of buying and selling

 

[crvetter]

So by giving only 30-40 days instead of 60, does that mean if you don't hear from Disney in that timeframe you can proceed with the sale? Or did I completely misunderstand? I don't get how Disney can say don't call us...haven't contracts been lost or misplaced before? It doesn't sound like good business practice.

To answer your question:



Says
1) You must give them no less than 30 days in advance of the proposed transfer date with the full terms and conditions. Section 14.1.2.1
2) DVD may determine prior to the proposed transfer date if it will elect to exercise its right of first refsual, if so the transfer to DVD must occur on or before proposed transfer date. Section 14.1.2.2
3) If DVD doesn't notify the seller (as long as they have proof DVD received the documents) they may continue with the transfer with terms or conditions substantially similar in the notice to DVD. Section 14.1.2.3

So #3 answers your question if the brokers move up the settlement days and stop using the traditional 60 days, then DVD will have no choice but to work faster or lose out on contracts. I tried very adamantly to make my broker put my settlement day at 30 days exactly but they refused because they didn't want to "upset" Disney. However, if the rumor is true I think their tune would change quite quickly, I understood their point of view when Disney was keeping it to 30, no need to seem aggressive when dealing with them.

Also interestingly enough section 14.1.2.4 say for gratuitous transfers (gifts, death, into a trust, etc) Section 14.1.2 doesn't apply. So I don't know why Disney is even requiring those people to get a waiver in the first place, seemingly they shouldn't even be putting that burden on them.

 

[sndral]

Aren't the sales reports showing higher sales than ever? Of course, as I remember, maybe that's on a $$ basis not a point basis. Since points are SO.MUCH.MORE.EXPENSIVE, maybe they are selling far fewer POINTS even with record $$$ numbers.

Selling smaller point contracts certainly fits having those teeny tiny 2 people studios they’ve created at Riviera.
The question then is what is their target for total number of points sold and are they missing that target? I suspect Riviera won’t be as problematic to sell as Reflections will be - Reflections will be a big resort with a whole lot of points to sell.

 

[crvetter]

Selling smaller point contracts certainly fits having those teeny tiny 2 people studios they’ve created at Riviera.
The question then is what is their target for total number of points sold and are they missing that target? I suspect Riviera won’t be as problematic to sell as Reflections will be - Reflections will be a big resort with a whole lot of points to sell.

It is a cash hotel too, I'm guessing it might end up comparable to or maybe smaller than Riviera. From the "leaked" artistic renderings they seem to be investing a lot there (lazy river, on the water restaurant) more than what they did for a normal DVC, but I guess Riviera got the Skyliner as it's big investment, likely Reflections stays a boat to MK only, fingers crossed they don't force WL to share with it.

 

[TexasChick123]

I’m not even remotely interested in the Rehab resort. It’s just not for me.

 

[crvetter]

I’m not even remotely interested in the Rehab resort. It’s just not for me.

Neither am I. Location isn't as great as any of the MK DVC resorts, but if they add some of that stuff I'll try staying there and use the dinning options when at WL. It will be hard for them, especially if a recession happens, could be another long sale process like SSR.

Riviera is one of 3 Epcot/HS resorts and riding on the coattails of SW:GE much easier for DVC. It has me thinking about it still.

 

[TexasChick123]

Neither am I. Location isn't as great as any of the MK DVC resorts, but if they add some of that stuff I'll try staying there and use the dinning options when at WL. It will be hard for them, especially if a recession happens, could be another long sale process like SSR.

Riviera is one of 3 Epcot/HS resorts and riding on the coattails of SW:GE much easier for DVC. It has me thinking about it still.

Yep. We already own VGF and BLT, so Rehab doesn’t have any appeal for me.

Going back to the thread topic, I am so happy we already passed ROFR on our VGC contract already. I don’t think they are going to necessarily take longer to let you know if you pass. I would guess they are tired of being asked about why they aren’t sticking to 30 days. It’s really not that difficult to stick to a month! They just want more time to spread out the buybacks IMO. It really stinks because they should just let people know to move on.

 

[sndral]

Neither am I. Location isn't as great as any of the MK DVC resorts, but if they add some of that stuff I'll try staying there and use the dinning options when at WL. It will be hard for them, especially if a recession happens, could be another long sale process like SSR.

Riviera is one of 3 Epcot/HS resorts and riding on the coattails of SW:GE much easier for DVC. It has me thinking about it still.

Ah yes, will the inverted yield curve be prophetic?

 

[crvetter]

Yep. We already own VGF and BLT, so Rehab doesn’t have any appeal for me.

Going back to the thread topic, I am so happy we already passed ROFR on our VGC contract already. I don’t think they are going necessarily take longer to let you know if you pass. I would guess they are tired of being asked about why they aren’t sticking to 30 days. It’s really not that difficult to stick to a month! They just want more time to spread out the buybacks IMO. It really stinks because they should just let people know to move on.

Agreed I don't think they intend to drag people out. Likely the big mad rush put a strain on them, with many asking for updates, so they reconfirmed the rules. If it does become a problem the Resale Brokers will handle it easily (as we suggested). I trusted my broker and they weren't wrong it was 29 days I think for my VGC contract.

It should actually be more efficient with the ability to amend UY because they just take the cheapest now with little consideration other than how many is on the waitlist. So hopefully it will lead to less questions on why it takes longer than 30 days, because they manage to stick to it.

 

[ELMC]

I would t be surprised if they are going to cut back on the ROFR department and reallocate those ppl elsewhere to save $$$.

And of course by "ppl" you mean drunken monkeys.

 

[RichVIII]

This is another things guides can say against resale....it can take months! Why wait? Pixie Dust...pixie dust...pixie dust. This is just a way to make it even more difficult to buy resale.