ROFR Thread April to June 2019 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[Katie L]

I checked the purchase / sale agreement for the two contracts that remain outstanding. Both have the closing date two months from the contract date. This doesn't seem too unreasonable. Yet, I'm curious if this (two month DVC closing window) is a requirement by Disney or specific to our broker (who we really, really like). How far out are other's closing date?

ours is 2 months from contract sign date.

 

[Hjs33]

I had a long conversation with Jennifer James who is the senior executive in contracts. We spoke clearly about boundaries and guidelines and ethics with regards to tying up people’s money and time indefinitely. She knows our displeasure. She also knows we are direct owners as well and, if I’m being fair, that experience was less than desirable as well. She shared that every co tract goes through a process of 2 eyes before it is stamped. Ours has currently gone through the first process and been marked to buy back. It is in the middle of the 2nd stage. I emphatically, in a very nice manner, expressed that, given our experiences, it would not behoove them to buy this back after such an extended period of time. She did state that they typically don’t decision contracts until about 3 weeks before the set closing date. I expressed that I would be escalating this issue up the food chain to Terri Schultz. Terri is already aware of the previous experiences we have had. Jennifer indicated she was going to see what she could do to speed up this process for us.

3 weeks before close!!! I have a delayed close of 6/29. I didn’t mind since we had just gotten back from Disney and wouldn’t use them right away. But if it’s going to be 3 weeks before close that will put me over 60 days from 4/4 when it was submitted. I’ll get the contract at the same time, but if they end up taking it I’m going to be pissed that I wasn’t bidding on other contracts.

Anyway wouldn’t it makes sense for them to take it sooner than later? That way people like me could bid on more contracts and possibly give them more contracts to possibly take and direct sale at a good profit?

 

[LynzyLady2019]

So that would make almost 3 months form contract date to closing date, is that right? Ours have been 2 months out from our broker.

Right, this is our first attempt at buying DVC and I didn't realize that was something I should push back on. Which broker are you using?

 

[arminnie]

I am listing a contract (as of today) with a reservation with a checkout date about 60 days from now. I've waited for months to list it because it just seemed odd to list something that couldn't be used. I figured 60 days was reasonable. It will take some time to get it listed, some time to negotiate an offer, and then the wait times for ROFR and closing. I would consider it a miracle if all of that happens even in 60 days.

 

[Jelly563]

Just be objective and remember, you buy resale for the reduced rate. The process takes some time (sometimes longer). I hate to wait as much as the next person but if you need your contract fast, then maybe you should consider direct. Ten pages of the same dialog should reinforce this. If you cant wait, resale is not for u.

 

[carli_h]

We’re day 25 today and 3 weeks before close is May 16th. It could be a long wait if this is the case. Frustrating as we’re planning on a 2020 visit as dvc members and thought that things would go a bit quicker post Jan 19th contracts.

 

[carli_h]

Just be objective and remember, you buy resale for the reduced rate. The process takes some time (sometimes longer). I hate to wait as much as the next person but if you need your contract fast, then maybe you should consider direct. Ten pages of the same dialog should reinforce this. If you cant wait, resale is not for u.

The guidelines many brokers were working to has changed and many offered before this change. These 10+ pages are from April. The working practices changed in March and many offers were made in Feb.

 

[jonesmatNY]

I read on DVC News that Disney has made a change to Membership Agreements that will allow them greater flexibility with use year points. So if they have a direct wait list for 100 points at BLT and the person wants April, Disney would have to ROFR a contract for April use year. Under the new guidelines Disney can ROFR any contract and change the use year. So perhaps this recent change has just added some time into the process to sort out everything and insure they review their wait lists? Apparently this change came about around March 8 for most of the DVC Resorts.

 

[RamblinWreck]

I checked the purchase / sale agreement for the two contracts that remain outstanding. Both have the closing date two months from the contract date. This doesn't seem too unreasonable. Yet, I'm curious if this (two month DVC closing window) is a requirement by Disney or specific to our broker (who we really, really like). How far out are other's closing date?

It seems to be industry standard, but the official Disney requirement is only 30 days. Once you send a contract to them, though, they are allowed to take all the way up until your closing date to make a decision.

I would argue that, given Disney's newfound propensity to take significantly longer than 30 days upon receipt of a contract, there is no defensible reason to put the closing date 60 days out. You are just enabling Disney's bad behavior. And it could probably be argued that the brokers are not serving their clients (the sellers and buyers) very well by allowing the closing process to be dragged out up to a month longer than it needs to be.

 

[TexasChick123]

I think the only thing you can do as a buyer going forward is pay extra close attention to the closing date in the contract. I know one broker told me Disney refuses to accept any contract with a closing date less than 60 days out. I would just make sure your closing date is only 60 days out as that’s the best it is going to be. It would also be wise to decide if this extra time they’re taking is worth it to you to buy resale. If I could get a good deal, it would be worth it to me, but that’s a personal decision.

I’m guessing a lot of the frustration expressed on here is because they are changing course on notification times. FWIW, I would be incredibly angry and frustrated too as I am very impatient. My advice is to take a deep breath and try to focus on something else going on. If you decide to offer again should any of these get taken, now you know the rules have changed. I am sorry that y’all are the guinea pigs on this change. It is just plain selfish that they’re taking this long so they don’t have to pony up the money sooner.

 

[RamblinWreck]

I think the only thing you can do as a buyer going forward is pay extra close attention to the closing date in the contract. I know one broker told me Disney refuses to accept any contract with a closing date less than 60 days out. I would just make sure your closing date is only 60 days out as that’s the best it is going to be. It would also be wise to decide if this extra time they’re taking is worth it to you to buy resale. If I could get a good deal, it would be worth it to me, but that’s a personal decision.

I’m guessing a lot of the frustration expressed on here is because they are changing course on notification times. FWIW, I would be incredibly angry and frustrated too as I am very impatient. My advice is to take a deep breath and try to focus on something else going on. If you decide to offer again should any of these get taken, now you know the rules have changed. I am sorry that y’all are the guinea pigs on this change. It is just plain selfish that they’re taking this long so they don’t have to pony up the money sooner.

Thanks for the info on what the broker said. I hesitate to just take him at his word, since someone here posted the actual guidelines that say that Disney only requires 30 days. Based on the below, I don't think Disney has the option to tell you 30 days isn't good enough, even if they'd prefer 60 days. But I will be interested to see how it plays out whenever I put another contract through and put my foot down on only giving Disney the minimum required time.

 

[arminnie]

For the person who asked sellers how long it took for a listing to show up on the website.

I listed with the Timeshare Store yesterday afternoon, and it was on their website in less than 24 hours.

 

[Katie L]

Just be objective and remember, you buy resale for the reduced rate. The process takes some time (sometimes longer). I hate to wait as much as the next person but if you need your contract fast, then maybe you should consider direct. Ten pages of the same dialog should reinforce this. If you cant wait, resale is not for u.

It is not about patience. It is about the opacity. If you are going to change the rules or expectations - let us know what the new rules are. I feel just as badly for sellers who need to get their funds. And brokers who I am sure are fielding a lot more angry customers.

 

[jamie3631]

jamie3631---$115-$17885-150-BWV-Mar-0/18, 0/19, 150/20, 150/21- sent 4/16

This is our third attempt this year. We had one taken in the frenzy to get the contract submitted before the restriction changes. That one was 120 points at AKL for $113/point, no points until October 2020. I was shocked they took it.

We had one pass 4 weeks ago today. 160 points at AKL for $100/point, with 122 points in 2019. Unfortunately the sale was just cancelled as it did not have a clear title.

So on to our third attempt. Boardwalk is our home and our love, we currently have 50 points there, so hoping this goes through, and these other ones just got us to where our heart is anyway. I'm hoping it passes but very nervous based on the price. We offered full asking price on it, I was shocked how low it was listed at.

 

[GoofyCoaster]

Things I wish I had known before buying resale:

1) buyer can choose title agency if paying closing costs. The emails from the broker refer to “ the agency we use”. Never even knew there was a choice until I made an offer with another broker and read more threads here. Fortunately, Magic vacation title worked out ok for us.
2) I would push for a closing date no more than 60 days out. For an offer made 3/8, the broker and/or title company chose a settlement date of “by 5/28”. That is a long time to potentially be left in limbo with ROFR or an unmotivated seller.
3) I would wait to wire the final balance until notified by the title agency that sellers closing docs had been received. We naively wired money beforehand. Fortunately, the sellers returned closing docs within a week. But our entire balance and deposit could have been tied up until 5/28 if the sellers had dragged their feet or backed out.

 

[Shannon G.]

jamie3631---$115-$17885-150-BWV-Mar-0/18, 0/19, 150/20, 150/21- sent 4/16

This is our third attempt this year. We had one taken in the frenzy to get the contract submitted before the restriction changes. That one was 120 points at AKL for $113/point, no points until October 2020. I was shocked they took it.

We had one pass 4 weeks ago today. 160 points at AKL for $100/point, with 122 points in 2019. Unfortunately the sale was just cancelled as it did not have a clear title.

So on to our third attempt. Boardwalk is our home and our love, we currently have 50 points there, so hoping this goes through, and these other ones just got us to where our heart is anyway. I'm hoping it passes but very nervous based on the price. We offered full asking price on it, I was shocked how low it was listed at.

Best of luck! I’m currently waiting on an answer for 150 pt BWV contract, also at $115 ppt. I’m on day 34.

 

[jamie3631]

Yikes. Those longs waits are killer! Hopefully this time goes quick for me, and you get an answer soon! Good luck!!!!

 

[Dan1]

jamie3631---$115-$17885-150-BWV-Mar-0/18, 0/19, 150/20, 150/21- sent 4/16

We had one pass 4 weeks ago today. 160 points at AKL for $100/point, with 122 points in 2019. Unfortunately the sale was just cancelled as it did not have a clear title.

Jamie,
What does it mean 'not have a clear title' and why could it not have been resolved so your purchase could still go through?

Thanks for the clarity and sharing your experience (in case it happens to me in the future).

 

[RamblinWreck]

One thing I'm realizing as I'm analyzing the long-term costs of DVC ownership (on a net-present-value basis) is that the initial purchase price is a pretty insignificant factor in the grand scheme of things.

I've been running calculations on Grand Floridian contracts and realizing that a 6% increase in initial purchase price only results in a 2% increase in the net-present-value of my "per trip" lodging expenses. Paying the direct price at GF ($245 per point) is a huge increase over say, paying $160 per point, which raises the "per trip" cost by 18%. But I think I'm going to rethink my whole "bargain shopping" mindset because at the end of the day, the hassle you go through in likely having some contracts taken in ROFR and in negotiating with sellers to save $10 per point just doesn't save you very much. It might be worth it for a 2% savings to some, but I'm starting to rethink whether or not it is for me.

It also kind of feels crappy when I score a sweet deal, and that really just turns into me helping Disney make a few extra bucks. Like they have me doing unpaid work for them.

 

[Dan1]

It also kind of feels crappy when I score a sweet deal, and that really just turns into me helping Disney make a few extra bucks. Like they have me doing unpaid work for them.

For me, what feels crappy on having a contract taken through ROFR is not the time we had to wait to find this out but the number of other sweet deals which I could not try to get during the waiting period. So, this time I've stopped looking as the various DVC broker sites until / if either of the two current outstanding contracts come back taken.