Question about right of first refusal.

[HeatherPage]

I'm not planning on selling our DVC but you never know what the future may hold. So, I'm trying to understand this ROFR thing. Is it that Disney might step in if the offering price is too low, high or just anything they feel they may want to buy. I was thinking what if someone found a buyer who would pay a particularly high price and the seller could make a nice little profit, could Disney come in and ruin that chance or do they only look at the contracts when the price is a little on the low side?

Thanks for any insight!

 

[JOC]

ROFR affects the buyer more than anyone else. You, as the seller, will get the agreed-upon selling price as per the contract, whether the money comes from Disney or a private buyer.

Disney does not "step in" and snatch up contracts per se. Once a resale price is agreed on between the seller and buyer, the contract has to go to Disney so that they can either exercise ROFR or waive ROFR.

So let's say you ask for $70 per point, and a private buyer agrees to pay that price. The contract then goes to Disney for ROFR, and if they decide to buy it back then they will be the ones to pay for that contract, not the private buyer. If Disney waives their ROFR, then the money comes from the buyer. So you get your money either way.

 

[childsplay]

It sounds like you are asking if Disney's ROFR could be lower than what you were offered from someone else?
If that is what you were wondering......the answer is no.
Let's say you find a buyer who is willing to pay $100 a point ....under Disney's system of ROFR, Disney has the option of either paying $100 a point (like the offer) or letting the sale go through. Disney can't say "Hey, we'll buy that contract back, but we are only going to give you $70 a point"
In reality, the ROFR has no tangible effect on the seller, they are going to get the price they have agreed to, either from their prospective buyer or Disney

 

[HeatherPage]

Thanks to both of you, that cleared things right up!