ROFR Thread April to June 2022 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[CaptainAmerica]

So this has been my thought too... maybe the point pool overflow problem can be solved if they buy back up the points without the intention of reselling just to bring things back into balance?

I don't think they need to. Allowing existing members to book declared-but-not-sold VGF2 rooms, combined with VGF2 owners not getting 2021 UY points, should have the same effect.

 

[tfc3rid]

Just a note from a lurker who loves the discussion on this thread and thinks the data is terrific. Plotting my first add on since 2002 but likely to go for 75 at Disneyland Tower but would love a value contract at something expiring 2054 and later.

 

[Jimmy Geppetto]

Maybe they want to earn back money they lost from giving away all those points during the pandemic to give owners "extensions". Gobbling them up allows them to put more rooms into cash inventory?

At least until they need to fire sale something...as I have mentioned a lot, prior to the pandemic, they didn't have sold out resort incentives...they didn't need them...

And, any unsold inventory they hold...which is what points become when they are taken from ROFR, are not subject to dues for the operating costs....

This is very valid point which many of us forget from time to time. Disney likely is seeing increased demand for cash stays and is simply using the points for that.

 

[Chuckdlc]

Quick question for those of you who are experienced. So I'm going to get my notification that I passed ROFR soon (I think). When I do, will the title company reach out to me and say hey, we're going to be closing (ie sending you closing docs) in the next couple of days or on X date? I'm just wondering if I'll have a couple of days (3-4) to get my cash to close organized?

 

[keirabella2012]

Update,
My paperwork came in from DVC today, so it was one day after scheduled closing day. The wife and I will get it all signed and notarized this weekend.

This is good news! I've been trying to follow how this is going for you! Disney bought mine and my closing date isn't until June 7.
Did you receive this via email? I get so many Disney emails, I hope I don't delete it by accident. LOL

 

[hglenn]

Quick question for those of you who are experienced. So I'm going to get my notification that I passed ROFR soon (I think). When I do, will the title company reach out to me and say hey, we're going to be closing (ie sending you closing docs) in the next couple of days or on X date? I'm just wondering if I'll have a couple of days (3-4) to get my cash to close organized?

Based on my experience, you'll have a lot of time... Like a lot... several weeks. And you won't get any firm dates... You'll get references like "soon" or ASAP...

I'm obviously a little salty about my current experience - hopefully yours is better. I have seen others close very swiftly! Regardless, you'll have time to get your stuff in order.

 

[Chuckdlc]

Ok good. I just wanted to make sure it wasn't going to be one of those things where they email me at 2:00 pm and say wire the cash by 5:00 pm. Aside from that it's fine.

 

[KPeterso]

Ok good. I just wanted to make sure it wasn't going to be one of those things where they email me at 2:00 pm and say wire the cash by 5:00 pm. Aside from that it's fine.

That definitely will not happen. I had to move around money in December for a contract I was buying and it took a little longer than I expected. I just let the broker know it would take a few extra days, and it was no problem. My closing date in the contract was late January, but since rofr was only about 3 weeks, we were able to move it up to close before the end of the year even with my small delay moving money around. Remember, the seller actually has to get their closing documents notarized so sometimes it takes them a little longer to complete their portion. Based on what I read here, I wait to wire the money until I know the seller's documents have been received by the title company.

 

[Stargazer65]

Ok good. I just wanted to make sure it wasn't going to be one of those things where they email me at 2:00 pm and say wire the cash by 5:00 pm. Aside from that it's fine.

"Yeah, ya got it? You needs to wire the cash by 5 PM...or they'll be some problems."

 

[Pens Fan]

Quick question for those of you who are experienced. So I'm going to get my notification that I passed ROFR soon (I think). When I do, will the title company reach out to me and say hey, we're going to be closing (ie sending you closing docs) in the next couple of days or on X date? I'm just wondering if I'll have a couple of days (3-4) to get my cash to close organized?

It definitely varies depending on the title company. We've had some that didn't get us the closing documents for nearly two weeks to one (Mason Title) that got them the next day. Regardless, any title company we've ever dealt with is going to give you the leeway to move some money around, It goes with the territory. You will be fine.

 

[Einstein509]

And, any unsold inventory they hold...which is what points become when they are taken from ROFR, are not subject to dues for the operating costs....

Wait, so this brings up an interesting thought. If Disney is not paying dues on the points they hold, does that mean that those dues are transferred to existing owners for the upkeep of the property?

In other words, the more points Disney holds of a certain resort for cash stays, the more the existing owners have to pick up the slack of the missing dues, and that leads to higher dues. No?

Am I missing something here?

 

[CaptainAmerica]

Quick question for those of you who are experienced. So I'm going to get my notification that I passed ROFR soon (I think). When I do, will the title company reach out to me and say hey, we're going to be closing (ie sending you closing docs) in the next couple of days or on X date? I'm just wondering if I'll have a couple of days (3-4) to get my cash to close organized?

If you're going to post regularly in the ROFR thread, you'll learn to keep at least $35,000 in small bills locked in a secure facility off of Orange Blossom Trail.

 

[CaptainAmerica]

Wait, so this brings up an interesting thought. If Disney is not paying dues on the points they hold, does that mean that those dues are transferred to existing owners for the upkeep of the property?

In other words, the more points Disney holds of a certain resort for cash stays, the more the existing owners have to pick up the slack of the missing dues, and that leads to higher dues. No?

Am I missing something here?

@Brian Noble help?

 

[Stargazer65]

Wait, so this brings up an interesting thought. If Disney is not paying dues on the points they hold, does that mean that those dues are transferred to existing owners for the upkeep of the property?

In other words, the more points Disney holds of a certain resort for cash stays, the more the existing owners have to pick up the slack of the missing dues, and that leads to higher dues. No?

Am I missing something here?

I wouldn't think it would work that way, otherwise the owners of a brand new resort would also have sky high dues, since Disney owns most of the points until they sell them.

 

[larry47591]

Wait, so this brings up an interesting thought. If Disney is not paying dues on the points they hold, does that mean that those dues are transferred to existing owners for the upkeep of the property?

In other words, the more points Disney holds of a certain resort for cash stays, the more the existing owners have to pick up the slack of the missing dues, and that leads to higher dues. No?

Am I missing something here?

We had this discussion a while back, but the way I understand it is Disney is on the hook for any shortfall in dues. So yes they still pay dues but probably a lot less then us.

 

[Einstein509]

We had this discussion a while back, but the way I understand it is Disney is on the hook for any shortfall in dues. So yes they still pay dues but probably a lot less then us.

Ok, thanks. Didn't know, that's why I asked.

 

[Chuckdlc]

Wait, so this brings up an interesting thought. If Disney is not paying dues on the points they hold, does that mean that those dues are transferred to existing owners for the upkeep of the property?

In other words, the more points Disney holds of a certain resort for cash stays, the more the existing owners have to pick up the slack of the missing dues, and that leads to higher dues. No?

Am I missing something here?

This is one of the two reasons (from a legal perspective) why I have thought Disney's DVC ROFR option is fundamentally screwed up:

When you exercise ROFR in a contract, you're buying what is being sold in that contract. It's not subject to additional or amended terms. However, this is not what Disney does.

Say for example I buy one of Captain America's contracts, I pay that price and it's a resale property and I'm on the hook for the maintenance fees moving forward.

Conversely, Disney exercises it's right to buy that same resale property and is perhaps not contributing anything to the MF's for that property. The bigger issue for me though is that Disney can then turn around and sell that property without resale restrictions. For me, for the ROFR process to be fair, they should have to resell it subject to the same restrictions. If they don't want to do that, then they should not be exercising ROFR on the property. As is, I think the process is fundamentally unbalanced.

 

[Cyberc1978]

Wait, so this brings up an interesting thought. If Disney is not paying dues on the points they hold, does that mean that those dues are transferred to existing owners for the upkeep of the property?

In other words, the more points Disney holds of a certain resort for cash stays, the more the existing owners have to pick up the slack of the missing dues, and that leads to higher dues. No?

Am I missing something here?

@Sandisw explained this to me in another thread, and IIRC Disney have agreed that if any resort is short on funds to cover the dues then Disney will step in and cover those costs.

 

[davidl81]

This is good news! I've been trying to follow how this is going for you! Disney bought mine and my closing date isn't until June 7.
Did you receive this via email? I get so many Disney emails, I hope I don't delete it by accident. LOL

Yes it was a email. I think it was from member services. There was a second email with fedex information that came at the same time. I did the the proceeds from the sale in my account yesterday (basically 8 days after they got paperwork), so it’s all done now.

 

[Polychrome]

$171-$18498-100-BCV-Feb-0/21, 100/22, 100/23- sent 4/22, passed 5/18

Received closing docs for this less than a day later from Cammy at Mason Title !!