ROFR Thread July to Sept 2020 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[hlhlaw07]

What happens if they refuse to run their part of estoppel until ROFR is waived?

Who is “they” in your question?

 

[poofyo101]

Fascinating! Good info, this probably has a lot to do with it.



This gets thrown around a lot in sort of conspiracy-theory-like tone, but over the past few years there's been absolutely no evidence that the direct waitlist has anything to do with ROFR. ROFR seems totally random and as far as anyone can tell, that department doesn't talk to anyone on the sales side.

If they did ROFR to fill waitlists, they'd never close waitlists in the first place. Resorts like BCV and GCV are either closed to waitlists or are years long, yet these resorts continue to pass ROFR. If they really exercised ROFR to fulfill waitlist requests, they would be taken a lot more often.

I agree. I do not think the waitlist is the driver. Or else all vgc would get bought back.
The price is the biggest driver. I have had several bought bought last 12 months.

 

[MICKIMINI]

I had a 30 OKW get through ROFR last year in around 57 days. AFAIK (25 years owning DVC) the 30 day ROFR is a neat way to work with the resale brokers and DVC is not bound by the 30 days. They make the rules and we have to wait it out. If this has changed and I'm wrong so be it, but I'm pretty sure DVC can drag it out as long as they want.

 

[CastAStone]

Who is “they” in your question?

Disney. My understanding is that part of the closing process is Disney validating that the points are as stated and that there are no outstanding reservations. Presumably they won’t do that until they’ve waived ROFR?

 

[Hawkeyegirls]

Hawkeyegirls---$130-$14334-100-PVB-Jun-0/19, 94/20, 100/21, 100/22- sent 8/7

Now the real wait begins, so excited it moved to the next step though!

 

[prouddaddycdn]

That is a great price on a Poly contract- congrats!

I would have snapped that up if it had a February use year at that price. I can always use more Poly points.

 

[hlhlaw07]

Disney. My understanding is that part of the closing process is Disney validating that the points are as stated and that there are no outstanding reservations. Presumably they won’t do that until they’ve waived ROFR?

Once the scheduled closing date arrives without Disney making an affirmative decision one way or the other means they have waived their right. Everyone likes to make “what if scenarios” about Disney going past closing and then trying to exercise ROFR, but it simply won’t happen. Disney is very aware of the law and the wording in their contract that created the ROFR. The actual wording of the ROFR provision in the Disney contract acknowledges that if scheduled closing comes without hearing from Disney then the right has been waived and the contract is clear to close. If closing companies won’t move forward without the actual nod from Disney on ROFR, then that is on them. They are needlessly holding up the process. But there is a reason you will not be able to find one case of Disney taking a contract past a scheduled closing date. Disney knows they legally do not have the right to do that and their ROFR expires (if not previously exercised) at the scheduled closing date as long as that date was 30 days out.

The administrative wait and subsequent delay of closing waiting for estoppel does not revive Disney’s ROFR

 

[hlhlaw07]

I had a 30 OKW get through ROFR last year in around 57 days. AFAIK (25 years owning DVC) the 30 day ROFR is a neat way to work with the resale brokers and DVC is not bound by the 30 days. They make the rules and we have to wait it out. If this has changed and I'm wrong so be it, but I'm pretty sure DVC can drag it out as long as they want.

You’re wrong. They can only drag it out for as long as you allow them to. Go back and look at the terms of your contract they took 57 days to make a decision. I guarantee it’s terms scheduled closing 60 days out or longer. They took 57 days because you gave them that long. Had your contract scheduled closing at 30 days out, then they would have made the decision within the 30 days.

 

[CastAStone]

Once the scheduled closing date arrives without Disney making an affirmative decision one way or the other means they have waived their right. Everyone likes to make “what if scenarios” about Disney going past closing and then trying to exercise ROFR, but it simply won’t happen. Disney is very aware of the law and the wording in their contract that created the ROFR. The actual wording of the ROFR provision in the Disney contract acknowledges that if scheduled closing comes without hearing from Disney then the right has been waived and the contract is clear to close. If closing companies won’t move forward without the actual nod from Disney on ROFR, then that is on them. They are needlessly holding up the process. But there is a reason you will not be able to find one case of Disney taking a contract past a scheduled closing date. Disney knows they legally do not have the right to do that and their ROFR expires (if not previously exercised) at the scheduled closing date as long as that date was 30 days out.

The administrative wait and subsequent delay of closing waiting for estoppel does not revive Disney’s ROFR

I wasn’t trying to make hypotheticals, I genuinely wanted to understand. Thank you.

 

[MICKIMINI]

Contract in hand. This is what went down. Signed 02/18/2019 passed ROFR 04/23/2019. "This contract shall be closed within 60 days..."

 

[hlhlaw07]

Contract in hand. This is what went down. Signed 02/18/2019 passed ROFR 04/23/2019. "This contract shall be closed within 60 days..."

A couple of things...Was 2/18 the day you signed or the day the contract was executed (meaning both parties signed)? Was 4/23 the day you were notified of Disney’s decision or the day Disney actually made the decision? My guess would be that Disney made the decision prior to 4/23 and because of the holiday weekend, you didn’t find out until 4/23.

Either way, it really means nothing to say that Disney waived their right after it expired. They were bound by the 60 days you gave them. It would be significant if they tried to take it after the 60 days, but just waiving a right they didn’t have anymore is just redundant formality.

 

[whitneypb85]

whitneypb85 -- $101-$16240-150-SSR-Sept- 23/19, 150/20, 150/21, 150/22- sent 8/8

All this talk of them taking stuff back has me a bit worried, but it is what it is! Fingers crossed!

 

[Royal Consort]

Plus, it adds to the frustration of resale buyers and Disney can hope that drives them to direct.

I would suggest that anyone buying a resale contract demand a closing date as close to the 30 days required as the details of your purchase will allow.

I've been trying to negotiate with a broker for a 60 day settlement or less because I don't want this to drag on. The broker just won't budge even when you inform them that Disney only requires their contractual minimum 30 days. The seem incredibly cognisant of not annoying the mouse. 90 days seems a bit silly to me. Closed on my house and moved in less time.

 

[hlhlaw07]

I've been trying to negotiate with a broker for a 60 day settlement or less because I don't want this to drag on. The broker just won't budge even when you inform them that Disney only requires their contractual minimum 30 days. The seem incredibly cognisant of not annoying the mouse. 90 days seems a bit silly to me. Closed on my house and moved in less time.

Yep, they are definitely scared of upsetting the mouse. Kinda weird. You would think they would be more worried about the people they actually work for. I think it depends on the broker, but I and few others have successfully been able to get the contracts re-written to a 30 day close. My recommendation is to make your offer contingent on a 30 day close. Some probably still won’t budge. Fear of the mouse is strong.

 

[MICKIMINI]

These are the facts. I sifted through emails from 2019 as I was buying three contracts and selling two simultaneously. This one was a royal pain from day #1 which was 02/14/2019. Broker couldn't decide if we could pay the deposit by credit card or not. I mailed a check 02/22/2019 after it was determined it had to be a check. I received an email check received 02/25/2019 and it went to ROFR that day. I received a phone call from broker 04/23/2019 it passed ROFR after pestering her repeatedly for an answer. It finally closed 05/13/2019. It has to be the longest closing in DVC history. Please don't ask to reveal the broker. I haven't done business with them since.

30 OKW I was the buyer
To ROFR 02/25/2019
Passed ROFR 04/23/2019
Closed 05/13/2019

 

[Cyberc1978]

Just wondering if the reason why Disney started to ROFR this soon is because that most deluxe resorts are closed until September 2021 and therefore Disney will have little to no income from those resorts and therefore buying back points and then renting them will generate at least some income. Then when the deluxe resorts opens back up they can just sell the points again.

just a thought.

 

[mattburmeister]

My wife and I had our first contract sent to Disney for ROFR

mattburmeister---$87-$14939-160-SSR-Aug-0/19, 56/20, 160/21, 160/22- sent 8/7

Wish us luck!!

 

[pangyal]

Updated!

Really interesting conversation about why ROFR is starting back up as well as the legal aspects of closing without hearing from Disney, so thank you all for distracting me there !

I HATED having to add one to the Taken list .

 

[sethschroeder]

just a thought.

They can choose to just pull inventory as breakage though for free based on my understanding but maybe I am wrong about that and there is some limit?

My thought is simply that they are stocking up on some points to be ready for the 100 to 125 increase on direct sales so there is no wait list that occurs.

To clarify its not "free" but there is a cap in breakage income so once they blow past that then its all "free".

 

[amymike159]

First time buyer!!!
seller giving $950 credit toward 2021 dues

amymike159---$95-$17025-175-OKW(E)-Feb-0/19, 0/20, 54/21, 175/22-Seller gives $950 cr- sent 8/7