ROFR and money back

[tgarre06]

I’m a total newbie at researching DVC resale. If Disney exercises its ROFR, do you get all your money back that had to be put down?

 

[MinnieInVA]

Yes, you’ll get your money back. Then you can try again on the next contract you find.

 

[Matty B13]

I’m a total newbie at researching DVC resale. If Disney exercises its ROFR, do you get all your money back that had to be put down?

If you see a contract that you like on the same brokers website, sometimes you can ask them to hold on to it and use it for another contract. But that is up to you, not them.

 

[sndral]

When your offer on a contract is accepted by the seller you pay a small portion (maybe $1,000, 10%? -the broker can tell you how much) which goes into your escrow account at the title company. If Disney excercizes ROFR you’ll not even need to send the rest of the money and you will get that earnest money deposit back.
It’s only if Disney passes on ROFR and the title company sends you & the seller the closing documents that you’ll need to send most of the money.

 

[Deb & Bill]

Unless the buyer backs out of the contract after ROFR is complete. Then the seller and the real estate company share the deposit.

 

[DVCSunDevil]

Yes, you get your money back. The only thing you would lose is the time you spent waiting.

 

[E2ME2]

Yes, you get your money back. The only thing you would lose is the time you spent waiting.

And you may incur opportunity costs during that time. That is, you give up on the opportunity to bid on that next tempting listing, because you don't know if your pending offer will be approved.... Waiting for ROFR can be very stressful.
I was fortunate that ROFR only took 15 days on my recent bid.

 

[Coffee66]

And you may incur opportunity costs during that time. That is, you give up on the opportunity to bid on that next tempting listing, because you don't know if your pending offer will be approved.... Waiting for ROFR can be very stressful.
I was fortunate that ROFR only took 15 days on my recent bid.

And you may incur opportunity costs during that time. That is, you give up on the opportunity to bid on that next tempting listing, because you don't know if your pending offer will be approved.... Waiting for ROFR can be very stressful.
I was fortunate that ROFR only took 15 days on my recent bid.

What is rofr and is it a real person or someone messing with you to get you to pay more. I think u make an offer and it's what the person posted you get it.

 

[Sandisw]

What is rofr and is it a real person or someone messing with you to get you to pay more. I think u make an offer and it's what the person posted you get it.

ROFR is Right of First Refusal. When you sell a contract, Disney has the right to buy it for the deal you made with a buyer for the same terms,

So, once an agreement is made between buyer and seller, it goes to Disney and they decide whether to let the sale go through or exercise ROFR.

If they do, then they become the buyer of the contract.

 

[E2ME2]

What is rofr and is it a real person or someone messing with you to get you to pay more. I think u make an offer and it's what the person posted you get it.

ROFR is Disney's Right of First Refusal. It is very real!
They can step in and override your bid with the seller, and buy it on behalf of DVC.
The seller still fares okay in that scenario, but the buyer is left holding the bag.
ET

 

[DVCSunDevil]

What is rofr and is it a real person or someone messing with you to get you to pay more. I think u make an offer and it's what the person posted you get it.

ROFR is Disney’s way of letting you do all of the negotiating with the seller and then stepping in and stealing the contract from under your nose. It’s very real and no one really knows the algorithm Disney uses when deciding on what to exercise ROFR.

 

[Coffee66]

ROFR is Disney’s way of letting you do all of the negotiating with the seller and then stepping in and stealing the contract from under your nose. It’s very real and no one really knows the algorithm Disney uses when deciding on what to exercise ROFR.

This is something that should be changed.

 

[Sandisw]

This is something that should be changed.

IT can’t. It’s the way the DVC timeshare system was set up. As mentioned, it doesn’t hurt a seller.

I am currently selling and to be honest, as bad as I would feel for the buyer, if I make a deal and Disney takes, I still get my sale. It’s one of the benefits IMO as it helps keep prices a bit higher

 

[Coffee66]

IT can’t. It’s the way the DVC timeshare system was set up. As mentioned, it doesn’t hurt a seller.

I am currently selling and to be honest, as bad as I would feel for the buyer, if I make a deal and Disney takes, I still get my sale. It’s one of the benefits IMO as it helps keep prices a bit higher

Now what if no one bites on a resale ..does Disney buy it and your offer price?

 

[Sandisw]

Now what if no one bites on a resale ..does Disney buy it and your offer price?

No. It only kicks in if you have a contract. So, until I make a deal, it remains unsold.

 

[Coffee66]

IT can’t. It’s the way the DVC timeshare system was set up. As mentioned, it doesn’t hurt a seller.

I am currently selling and to be honest, as bad as I would feel for the buyer, if I make a deal and Disney takes, I still get my sale. It’s one of the benefits IMO as it helps keep prices a bit higher

No incentive to a buyer. He makes the offer asked for and then Disney decides if he is Disney worthy to get it. So the buyer has to wait and maybe can't bid on anything else until this settles. How Lind does it take for Disney to decide if the offer goes thru?

 

[striker1064]

No incentive to a buyer. He makes the offer asked for and then Disney decides if he is Disney worthy to get it. So the buyer has to wait and maybe can't bid on anything else until this settles. How Lind does it take for Disney to decide if the offer goes thru?

That's not really what's happening... Disney isn't deciding if the buyer is "Disney worthy." But all contracts state Disney has the right of first refusal on all sales (some other timeshares do this as well). If Disney decides to buy the contract, they assume the agreed-upon deal and the original buyer is released from obligation. ROFR usually takes around 30 days but it can take up until the closing date.

But yes, it does stink that as a buyer you are in limbo for a bit of time. It's a pretty smart move for Disney and other companies that do this, because they don't have to bother negotiating deals and can cherry-pick the best ones as needed. It's still worth the wait to avoid direct pricing.

 

[E2ME2]

No incentive to a buyer. He makes the offer asked for and then Disney decides if he is Disney worthy to get it. So the buyer has to wait and maybe can't bid on anything else until this settles. How Lind does it take for Disney to decide if the offer goes thru?

Coffee66;
As Striker1064 states, it's not about Disney-Worthiness. It's more about safe-guarding the low-end price on resales,so as to keep Direct Prices more competitive. And, as a current owner of Direct Points I can appreciate that. That's why a lot of Direct owners will typically pay the asking price to resell buyers because they also have in the back of their minds that they don't want the resale prices to dip so low that there's no recoup for them if/when they decide to sell. Trust me; it made me second-guess the resale offers I submitted. It is a better setup than a lot of other timeshares I've looked into. Some other brands have disgruntled owners selling points on the very-cheap and, as a result, they have introduced lots of other hurdles to those resale markets, like not allowing fixed weeks to convert to points and/or requiring new buyers to buy a minimum amount of developer points. The on-property perks and advantages of DVC help keep it bolstered above most competition in the area, but I think ROFR is also ultimately a benefit to greater DVC community.
ET

 

[mustinjourney]

No incentive to a buyer. He makes the offer asked for and then Disney decides if he is Disney worthy to get it. So the buyer has to wait and maybe can't bid on anything else until this settles. How Lind does it take for Disney to decide if the offer goes thru?

from the stickies at the top of the board (although this is buried several layers deep...so not the easiest to find)

ROFR – Disney’s Right of First Refusal
When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise its Right of First Refusal (ROFR).


If you find a contract you like and you and the seller agree on a purchase price, the agreement to sell the points is submitted to DVC for review. If the price is too low, Disney will step in and exercise their ROFR, which means DVC will purchase the property themselves at the terms agreed upon by the seller and the original buyer. DVC then becomes the buyer. The seller instead gets its money from Disney and the buyer loses the contract.

If DVC exercises ROFR, the original buyer can’t come back and make a higher offer. There is no second chance; the resale contract is lost to Disney. There is no financial hardship on the potential buyer — they will receive a refund on any down-payment that may have been part of the deal. But the buyer will have to go back to square-one and try to find another deal.

Disney must be given up to 30 days to review the contract and decide whether they will exercise ROFR, but it usually takes less time than that.

 

[EYL]

IT can’t. It’s the way the DVC timeshare system was set up. As mentioned, it doesn’t hurt a seller.

I am currently selling and to be honest, as bad as I would feel for the buyer, if I make a deal and Disney takes, I still get my sale. It’s one of the benefits IMO as it helps keep prices a bit higher

To add... Not just Disney and not just Timeshares. My Condo Board has a ROFR provision as well. As far as I know, they never have exercised it. But paperwork still needs to be presented to the Board for review and "rubber stamped" before the closing can occur.