ROFR Question

[Owen_Mc]

If disney exercises their ROFR on a 150 point contract, can they chop it up and sell it as smaller add ons or do they have to sell it as a 150 point contract?

 

[xipetotec]

If disney exercises their ROFR on a 150 point contract, can they chop it up and sell it as smaller add ons or do they have to sell it as a 150 point contract?

My understanding ( and someone can correct me here... ) is that once they've re-appropriated points, they can pretty much do whatever they want with them.

 

[drusba]

The points will retain the same use year they had before because they relate to the specific unit for which the seller had his contract and each unit has a specified use year. However, Disney can sell them in any increments it wants.

 

[Sandisw]

I have been told the same thing. Disney does not have to keep it as one contract if they buy it back. They can reallocate those points and sell them any way they wish. But I believe they have to keep them as the same UY.

 

[bookwormde]

I agree with the above posters, they can carve them up however they care to (just as they do with new resorts), but they cannot change use years or “create” points, however I am sure they transfer available point available for a specific year between ROFR contracts and possibly from their “held: contract to produce typically “balanced” contracts (not stripped and not loaded).

bookwormde

 

[disneynutz]

I question the UY comments.

Based upon several observations, I don't think that DVD sticks to a specific UY policy.

They have been selling February UY at BLT since sales started. According to DVD, all UY's are available, but they have instructed the Guides to sell February unless asked.

If you watch the for sales listings at the various resale brokers, certain UY's are listed more than others. We have some October contracts and I have noticed that October resales are seldom available.

When buying a sold out resort through DVD, some have reported that certain UY's weren't available and they had to wait. Magically, in a couple of days, the exact number of points and UY became available.

My gut feeling is that UY's are another one of those unchecked DVD items that is adjusted as needed to make a sale.

 

[Dean]

The POS specifically spells out that DVC can sell the points bought back as if they were new points and divide them up however they wish. While not spelled out, I can't imagine they could change the UY.

 

[drusba]

A "unit" is a group of rooms. When you purchase DVC you purchase a percentage real estate interest in a unit. You do not purchase "points." Those are just symbols that represent your actual ownership interest in a unit. The documents expressly declare that "all ownership interests in a given Unit shall have the same Use Year." They also say that the designated use year for a unit "shall continue for so long as the vacation ownership plan continues."

When DVD purchases a resale through ROFR, it is purchasing a previously sold percentage real estate interest in a unit, not points. That unit has its designated use year and it cannot be changed. When it goes to resell what it has repurchased, it can break it down into different percentage ownership interests in that particular unit but there is no way it can legally change the use year or put that interest into another unit with a different use year. The only way Disney could legally do that is to amend all official documents. Since that would be a fundamental change in the ownership interest in each unit it cannot do such a change without a vote of the members.

Anything Disney is selling now at BLT with a February use year is from a unit that has a designated February use year. That can be multiple units; it just depends on how many were designated with a February use year when they were declared for sale.

 

[wdrl]

A check of deeds recorded with the Orange County Comptroller for Bay Lake Tower would indicate that each "unit" is assigned a specific Use Year. A random check of deeds for units 25a, 26a, 26b, 34a, 36a, 82b, 87a, 87b, 88b, and 88c all show a February UY; all deeds for unit 82a have a March UY; all deeds for unit 82c have a June UY; and all deeds for unit 14b have a October UY.

The deeds also indicate that the total number of points in each unit varies. For example, unit 87a has about 34,976 points assigned to it, while unit 14b has about 19,637 points assigned to it.

As noted by the previous poster, this unscientific review of deeds show that points are tied to specific units, and each unit has a specific UY.