ROFR Process Question

[ninjagirl]

We recently put in a bid on a contract through Fidelity and it was accepted. After all the paperwork was signed and sent to Disney for ROFR, we realized the 2012 points had to be banked as we weren't going to be able to use them. The deal wouldn't be closed before the banking deadline (way short of the deadline). The lady at Fidelity said if the points change status at any time during the ROFR period, Disney would kick it out and we would have to resubmit it. She suggested we sign an addendum with the banked points reflected and send that in to Disney. Does anyone know if that restarts the ROFR period? We were a week in when we sent the addendum. Any help or advice is appreciated.

 

[DannysMom]

Hard to say. It might or might not restart the ROFR clock.

I had a similar situation. I sent my contract back on 6/25 and immediately called the agent to ask the seller to bank the 2012 points. Which the seller promptly did. But she sent the contract as it was to Disney. By Friday they had heard back that Disney required an addendum. It was sent out and both buyer & seller returned it promptly. It did not seem to restart our ROFR clock. We passed ROFR on 7/17.

Good luck with your ROFR wait.

Sent from my iPad using DISBoards App, please excuse any typos.

 

[DougEMG]

The last time this happened to me, it did not restart the ROFR 30 day count down. Wether this is normal or not, I have no idea.

 

[ninjagirl]

Thanks so much guys! That's what I was hearing but I just wanted to confirm. Already being 10 days in, it would be frustrating to have to start that wait over again. :: fingers crossed in the meantime ::

 

[Sandisw]

Not really sure but we had to do that and we heard back in 21 days, within the 30 day time period so if it did, it wasn't delayed by much.

Good luck!!!

 

[drusba]

First, there is a misconception that the period in which DVD must decide whether to exercise ROFR is within 30 days of having the contract submitted to it. The actual rule is that the seller must submit the completed contract to DVD "no less than 30 days" before the proposed closing date and then DVD must inform the seller of its decision "prior to the closing date" meaning it could delay decision until the day before closing. In other words DVD must have at least 30 days notice but if it receives the contract more than 30 days before closing it has up until the day before closing to respond. In the typical resale the proposed closing date is usually far more than 30 days after the contract is actually submitted to DVD and DVD usually responds well before the closing date and usually in less than 30 days.

If the terms of the contract are changed such as by the addendum suggested above, DVD could insist on being given at least 30 days after the change to decide and thus if the change occurs less than 30 days before the anticipated closing date it could insist that the closing date be changed to 30 days after notice of the change to the contract. Nevertheless, that does not usually happen and is not likely to happen unless there is significant change to the terms of the contract (e.g., such as a change in the per point price) or the change is submitted just before the closing. The addendum you submitted would likely not affect DVD's decision even if it was submitted less than 30 days before closing and, obviously, if the time to closing was still 30 days or more at the time the addendum was submitted, DVD could not insist on any extensions.