ROFR Thread January to March 2024 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[TotallyMinnie83]

They can sell it however they want to. They can break it up, they can change the use year, you name it. The only thing they can't do is change the Unit the points belong to. That's one of the more fact-based theories of why certain contracts are ROFR'd: that they need the points to add to whatever they already have to create a larger contract that someone has requested (because all points in a contract must be from the same Unit).

When you say unit are you referring to the use year?

 

[DonMacGregor]

But they will allow you to bank those past the banking deadline when purchased direct, which they wouldn’t with resale. So it is kind of like double points because you can actually use them.

True on the banking, but they are still points they are legally obligated to provide to you, regardless of the banking deadline.

 

[DonMacGregor]

When you say unit are you referring to the use year?

No, Units refer to the physical element of the resort that the points represent. A "Unit" may be a single room or bungalow, but it is almost always comprised of several rooms. If you look at your deed, it will say something like "An undivided 0.3285% interest in Unit 80A of Disney's Saratoga Springs Resort". That indicates that your points represent an ownership interest in that specific Unit at that resort, and the percentage of the Unit that the ownership interest represents. I keep capitalizing "Unit" because it is the legal definition of the real property.

Use Year is simply the annual date upon which access to your points is based.

 

[KAT4DISNEY]

But they will allow you to bank those past the banking deadline when purchased direct, which they wouldn’t with resale. So it is kind of like double points because you can actually use them.

Most resale contracts already have the points banked so they are very useable. And they can even come with points banked from the previous UY and if timed right are useable. That you never get with direct - last years, current (banked or bankable) and all going forward.

In the past some resale buyers have gotten points banked in newly purchased resale contracts. Been awhile since I've seen that it has happened though there's no idea if anyone even asks. It's much like banking of transferred points after the deadline. Direct is now actually in the contract though and others discretionary.

 

[AstroBlasters]

Most resale contracts already have the points banked so they are very useable. And they can even come with points banked from the previous UY and if timed right are useable. That you never get with direct - last years, current (banked or bankable) and all going forward.

In the past some resale buyers have gotten points banked in newly purchased resale contracts. Been awhile since I've seen that it has happened though there's no idea if anyone even asks. It's much like banking of transferred points after the deadline. Direct is now actually in the contract though and others discretionary.

Right, but if you purchased a resale right with unbanked points past the deadline then you would most likely be SOL… where as with direct you know you will have those.

 

[KAT4DISNEY]

Right, but if you purchased a resale right with unbanked points past the deadline then you would most likely be SOL… where as with direct you know you will have those.

Again, quite rare for the points to not already be banked so I don't consider that to be an argument for direct. One can always wait on a resale with banked or bankable points or negotiate a lower price. Negotiating a lower price is something not available on direct.

 

[Sandisw]

I must say I’m very surprised by this as they rarely take resorts that are being actively sold.

But to me this is a very strong indication that tower is going to be the same association.

It’s funny that the lack of ROFR was seen as a key to it being included. As I have said, I always saw it as the opposite and that taking them made more sense to me if it’s going to be part of the same association.

I think this, and the documents found make it much more secure the tower is part of PV!B… but I think it may indicate sales won’t happen for a bit if the strategy is to get this resale price up.

 

[Sandisw]

Right, but if you purchased a resale right with unbanked points past the deadline then you would most likely be SOL… where as with direct you know you will have those.

While not a sure thing, they are pretty good about letting even resale points to be banked after the deadline.

The reason you do not hear about it that much is because most sellers and buyers have them banked during the process if it’s going to be close to the deadline.

 

[TinkAgainU]

And the sellers have online notary scheduled for 4/2

I was happy to see Cammy's office at https://www.dvcclosings.com/ does not charge for the e-notary. That speeds up closings (not sure if that includes International, which may not be allowed for title insurance reasons?) Other escrows might offer it for free too... I didn't ask. But it's a game changer for speedier escrow closings when the Sellers are tech savvy enough to use it.

 

[jcolvin5]

I was happy to see Cammy's office at https://www.dvcclosings.com/ does not charge for the e-notary. That speeds up closings (not sure if that includes International, which may not be allowed for title insurance reasons?) Other escrows might offer it for free too... I didn't ask. But it's a game changer for speedier escrow closings when the Sellers are tech savvy enough to use it.

That’s good to know! www.magicalvacationstitle.com charges $149.

 

[Jimmy Geppetto]

That’s good to know! www.magicalvacationstitle.com charges $149.

So on top of charging 40% more for closing costs, they charge an additional $149 for e-notary when a competitor offers it for free???

Sounds about right.

They are ridiculous.

 

[TinkAgainU]

This does not take into account liability at all.

When assessing a company's ability to fund initiatives like the ROFR, simply looking at cash on hand isn't enough. It's important to consider the company's liabilities as well. For instance, if a company has $10 million in cash but also has $25 million in liabilities, the large debt suggests that using a significant amount of cash to exercise ROFR could strain the company's financial health. ...

I don't see "some" ROFR as having ANY liability at all, it is simply a labor commitment. The reason I say that is consider DVD has 30 days to give a ROFR pass, but if they wait, sell Direct to purchasers in that timeframe who have 10 days to cancel, once the 10 days is up, Disney is safe with the ROFR being a taken decision. I was told by my Guide, they can split up a contract, and change the use year at will (I assume an accounting issue). The only challenge would be if they take say a 200 point Poly, and only have one person who wants 150 points, now they need to hold the 50 points until they have a Buyer. But they typically have close to a $100/point markup. That's pretty profitable.

 

[jcolvin5]

So on top of charging 40% more for closing costs, they charge an additional $149 for e-notary when a competitor offers it for free???

Sounds about right.

They are ridiculous.

Higher in every aspect. Buyers need to know they have options. I didn’t know for my first resale. Live and learn.

 

[T00dles]

I don't see "some" ROFR as having ANY liability at all, it is simply a labor commitment. The reason I say that is consider DVD has 30 days to give a ROFR pass, but if they wait, sell Direct to purchasers in that timeframe who have 10 days to cancel, once the 10 days is up, Disney is safe with the ROFR being a taken decision. I was told by my Guide, they can split up a contract, and change the use year at will (I assume an accounting issue). The only challenge would be if they take say a 200 point Poly, and only have one person who wants 150 points, now they need to hold the 50 points until they have a Buyer. But they typically have close to a $100/point markup. That's pretty profitable.

For sure. Those points need to have a direct buyer though. And, the labor dedicated to ROFR likely has specific directives in place, which change occasionally based on consumer dynamics and sales strategies.

Will be interesting to see what the new resale Poly floor is that D appears to be setting.

 

[Shoktherapy]

You need to be careful with that. They never offer you "double" points, they just cleverly tell you when you buy a use year that is still in its prior year that you're getting "double" points when you're really just getting what's owed to you. For example, if you bought an April use year contract at Riviera today, you'd get all of the 2023 points today (because the 2023 use year doesn't end until tomorrow), plus all of the 2024 points on Monday, making it look like you're getting "double" points.

They can't offer you "double points" because there are a finite number of points allocated to the resort, and only that number of points for the lifetime of the resort. If they were to offer twice as many points, those points would have to come from somewhere.

I never explored it so I never actually looked into the details. I just know what he kept telling me over the phone. I would have obviously taken the time to understand the details more if I was going to pursue Direct at the time but we had already made up our mind on resale at that point. Thanks for your explanation though.

 

[LittleBitGoofy]

Higher in every aspect. Buyers need to know they have options. I didn’t know for my first resale. Live and learn.

Well, higher in costs but much lower in provided value. See, that's where the savings come in! Wait, wait, that can't be right...

 

[jcolvin5]

Well, higher in costs but much lower in provided value. See, that's where the savings come in! Wait, wait, that can't be right...

So I’ve come to understand since joining the forum. Having said that, I did not have a negative experience, just a costly one

 

[BeachGuy]

Ugh… I am so sorry for you and @mblsj. Will be very interesting to see if this is a start of a big PVB take back. If so, I’ll be getting the same news in a week or less.

ETA: @BeachGuy on pins and needles to hear what happens with your contract!

I still haven’t heard anything yet.

 

[Stormalong Smiths]

I still haven’t heard anything yet.

Sending good wishes your way!

 

[The_MT]

Time to find a Poly international seller!!