ROFR Thread Oct to Dec 2021 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[CaptainAmerica]

Probably my own fault, I had the broker inquire today.

I had my broker inquire on Friday.

 

[Mai Ku Tiki]

To get an idea of how long it's been actually taking, now you start following the Closing time thread. https://www.disboards.com/threads/closing-time-2021-edition.3836891/

Ahhh! THANKS!

 

[SummerJoy]

SummerJoy---$168-$18185-100-BCV-Mar-0/20, 0/21, 200/22, 100/23- sent 10/8, passed 11/2

I can't wait to be an owner at Beach Club!

 

[Pnyc1969]

I think if they take mine at $129, which I'm assuming they will, I'm out at current resale prices. AKV creeping up towards $140 is insane.

I saw an AKV resale contract at $179 today! But I think it might have been a misprint because the contract price didn't add up right. But yes, I'll try a few more times with AKV to see if Disney is just buying back aggressively. If it seems hopeless with AKV, I'm going for Riv instead. At $150 or so per point for a swanky resort near Epcot that I can use till 2070, it's looking like a good deal. Despite the restrictions and the fact that I'll be 101 when the contract ends....

 

[Pnyc1969]

SummerJoy---$168-$18185-100-BCV-Mar-0/20, 0/21, 200/22, 100/23- sent 10/8, passed 11/2

I can't wait to be an owner at Beach Club!

Congratulations! I'm happy for you! People really like BC. I've stayed at YC and it wasn't my thing, but that's what's so great about DVC. Everyone is passionate about their home resort.

 

[Pnyc1969]

Wow, I thought that one would have passed....

Jberndt10---$132-$21820-160-AKV-Dec-0/20, 80/21, 160/22, 160/23- sent 10/4, taken 11/8

Sorry! They took a long time to get back to you. My AKV was sent on 10/6 but they took it 10/29. It was $127. I sent another one on 11/3 for $135. Maybe this will be the one.

 

[Jodie0705]

Jodie0705---$145-$32755-220-AKV-Aug-220/20, 220/21, 220/22, 220/23- sent 10/6, passed 10/27

Contract was closed today; now the impatient wait to get our points! Cancelled a trip we booked direct before joining and wondering if we’ll even be able to find any availability in May or Jun.

 

[Pnyc1969]

Jodie0705---$145-$32755-220-AKV-Aug-220/20, 220/21, 220/22, 220/23- sent 10/6, passed 10/27

Contract was closed today; now the impatient wait to get our points! Cancelled a trip we booked direct before joining and wondering if we’ll even be able to find any availability in May or Jun.

Great! You must be relieved. Yes, I'll worry about reservations if and when my contract passes ROFR, but my understanding is AKV is one of the three resorts (along with SSR and OKW) that have availability at the 7-month mark. Pls. post your findings.

 

[CaptainAmerica]

I've looked everywhere and can't find it... People keep saying the 30 days for ROFR is a general guideline and not an actual rule, but what IS the actual rule? Disney can't possibly be entitled to draw out the ROFR process in perpetuity. There has to be a limit in Florida law or in the membership agreement where "if you don't hear by X date, Disney is deemed to have waived ROFR."

 

[Adg0428]

I've looked everywhere and can't find it... People keep saying the 30 days for ROFR is a general guideline and not an actual rule, but what IS the actual rule? Disney can't possibly be entitled to draw out the ROFR process in perpetuity. There has to be a limit in Florida law or in the membership agreement where "if you don't hear by X date, Disney is deemed to have waived ROFR."

I don’t believe so. Someone was just waiting 67 days

 

[CaptainAmerica]

I don’t believe so. Someone was just waiting 67 days

"They did that" and "they're allowed to do that" aren't necessarily the same thing.

 

[Sandisw]

I've looked everywhere and can't find it... People keep saying the 30 days for ROFR is a general guideline and not an actual rule, but what IS the actual rule? Disney can't possibly be entitled to draw out the ROFR process in perpetuity. There has to be a limit in Florida law or in the membership agreement where "if you don't hear by X date, Disney is deemed to have waived ROFR."

The documents state they have up until the date of closing to let you know if you have passed. You must give them at least 30 days before setting the closing date. It is in the POS documents. I will see if I can find it and post the actual language.

 

[Lorana]

The 30 days is the minimum number of days you must give Disney to exercise or waive ROFR. The maximum is the closing date set in the contract. If Disney does not respond by the closing date, they have been deemed to waive their right.

 

[Lorana]

The documents state they have up until the date of closing to let you know if you have passed. You must give them at least 30 days before setting the closing date. It is in the POS documents. I will see if I can find it and post the actual language.

14.1.2 DVD Right of First Refusal. If an Owner desires to sell, transfer, assign or hypothecate that Owner's Unit or Ownership Interest, DVD has the right of first refusal to acquire the Unit or Ownership Interest in the Unit under the same terms and conditions as are offered to or by a bona fide third party, including financing, and in accordance with the following:

14.1.2.1 Owners desiring to transfer their Unit or Ownership Interest must notify DVD in writing no less than thirty (30) days in advance of the proposed transfer date of their intent to transfer and must include a copy of the proposed transaction reduced to writing in all respects. Such notice shall include the full terms and conditions of the transfer, and the full name and primary address of the prospective true transferee (as distinguished from agents and intermediaries). Such notice of intent to sell shall be sent to DVD for verification at to the attention of Membership Administration, at 1390 Celebration Boulevard, Celebration, FL 34747, or such other department or address as may be designated by DVD for this purpose from time to time

14.1.2.2 After receipt of such written notice, DVD may determine prior to the proposed transfer date whether to exercise its right of first refusal set forth in this Section 14.1.2. If DVD elects to exercise its right of first refusal, DVD must notify the Owner in writing of such election, and the transfer to DVD must be completed on or before the proposed transfer date.

14.1.2.3 If DVD fails to notify the Owner or Cotenant of its election to exercise its right of first refusal prior to the proposed transfer date, then the Owner or Cotenant may proceed to complete the transfer with such bona fide third party on terms or conditions substantially similar to terms or conditions that were offered to DVD in the notice, including at a price not lower than offered to DVD, if applicable. Should, however, such transfer to a third party not be properly consummated within four (4) months after the date the notice is transmitted to DVD, the terms and limitations of this Section 14.1.2 shall again be imposed on any transfer by the Owner.

14.1.2.4 The provisions of this Section 14.1.2 shall not apply to transfers under powers contained in mortgages and similar instruments or to transfers upon the death of an Owner, a divorce decree, a gift or bequest of an Ownership Interest from an Owner to the Owner's spouse or descendants, to the trustee of a trust or other entity established primarily for the benefit of the Owner or the Owner's spouse or descendants, or to the Owner's legal guardian, but the provisions of thisSection 14.1.2 shall apply to any further assignment (whether voluntarily, by operation of law, at judicial sale, or otherwise) by such Owner's spouse, other heirs or devisees, such trustees, or such guardian to the same extent that such provisions would have applied to the Owner. processing of this right of first refusal.

14.1.2.5 DVD may impose an administrative charge in connection with the waiver

 

[CaptainAmerica]

14.1.2 DVD Right of First Refusal. If an Owner desires to sell, transfer, assign or hypothecate that Owner's Unit or Ownership Interest, DVD has the right of first refusal to acquire the Unit or Ownership Interest in the Unit under the same terms and conditions as are offered to or by a bona fide third party, including financing, and
in accordance with the following:

14.1.2.1 Owners desiring to transfer their Unit or Ownership Interest must notify DVD in writing no less than thirty (30) days in advance of the proposed transfer date of their intent to transfer and must include a copy of the proposed transaction reduced to writing in all respects. Such notice shall include the full terms and conditions of the transfer, and the full name and primary address of the prospective true transferee (as distinguished from agents and intermediaries). Such notice of intent to sell shall be sent to DVD for verification at to the attention of Membership Administration, at 1390 Celebration Boulevard, Celebration, FL 34747, or such other department or address as may be designated by DVD for this purpose from time to time

14.1.2.2 After receipt of such written notice, DVD may determine prior to the proposed transfer date whether to exercise its right of first refusal set forth in this Section 14.1.2. If DVD elects to exercise its
right of first refusal, DVD must notify the Owner in writing of such election, and the transfer to DVD must be completed on or before the proposed transfer date.

14.1.2.3 If DVD fails to notify the Owner or Cotenant of its election to exercise its right of
first refusal prior to the proposed transfer date, then the Owner or Cotenant may proceed to complete the transfer with such bona fide third party on terms or conditions substantially similar to terms or conditions that were offered to
DVD in the notice, including at a price not lower than offered to DVD, if applicable. Should, however, such transfer to a third party not be properly consummated within four (4) months after the date the notice is transmitted to DVD, the
terms and limitations of this Section 14.1.2 shall again be imposed on any transfer by the Owner.

14.1.2.4 The provisions of this Section 14.1.2 shall not apply to transfers under powers contained in mortgages and similar instruments or to transfers upon the death of an Owner, a divorce decree, a gift or bequest of an Ownership Interest from an Owner to the Owner's spouse or descendants, to the trustee of a trust or other entity established primarily for the benefit of the Owner or the Owner's spouse or descendants, or to the
Owner's legal guardian, but the provisions of thisSection 14.1.2 shall apply to any further assignment (whether voluntarily, by operation of law, at judicial sale, or otherwise) by such Owner's spouse, other heirs or devisees, such trustees, or such guardian to the same extent that such provisions would have applied to the Owner. processing of this right of first refusal.

14.1.2.5 DVD may impose an administrative charge in connection with the waiver

Thank you! 14.1.2.3 is exactly the language I was looking for.

 

[VH103428]

Vh103428---$135-$16100-115-OKW(E)-Aug-115/20, 115/21, 115/22, 115/23- sent 10/18, passed 11/8

 

[DaveNan]

Both Sandisw and Lorana described the rules accurately.
A couple of observations I have made over the last 5 years..
While the POS allows Disney extra time if the closing is delayed, there have been periods they have taken advantage of the clause and others when they have not. It seems like the last few months, when buyers have experienced longer waiting times than the typical for right now, those contracts always had delayed closings. So, to me it looks like they are taking advantage of the rule right now. There have been other periods where all contracts seemed to be coming back in the typical time, regardless of closing date.
Second, I have heard that even if the response slips past the closing date, all the closing companies are hesitant to push this rule with Disney/OCC. A few months ago, when many of the responses were taking 30-40 days, with most contracts being written with a 30 day closing window, I never heard of a single case of the closing company pushing this rule.

 

[DaveNan]

BTW... when I learned this rule was in 2017..... Look around mine, responses were in 11-15 days and mine took 45. And yes, mine was a delayed closing. (also look at those prices.......)

cherrybaby85---$90-$11487-120-SSR-Oct-0/16, 11/17, 120/18- sent 8/7, passed 8/18

amjrsj---$85-$9283-100-SSR-Sep-0/16, 69/17, 100/18, 100/19-seller pays MF'17- sent 8/22, passed 9/5

DaveNan---$79-$20375-250-SSR-Sep-0/16, 0/17, 250/18-delayed closing-sent 8/2, passed 9/16

Baleeve---$91-$15115-160-SSR-Apr-0/16, 0/17, 95/18, 160/19- sent 9/3, passed 9/15

Lundve---$96-$10275-100-SSR-Mar-0/16, 0/17, 132/18, 100/19- sent 9/12, passed 9/21

MaryAnne220---$96-$15895-160-SSR-Oct-0/16, 0/17, 160/18, 160/19- sent 9/29, passed 10/13

 

[CaptainAmerica]

Both Sandisw and Lorana described the rules accurately.
A couple of observations I have made over the last 5 years..
While the POS allows Disney extra time if the closing is delayed, there have been periods they have taken advantage of the clause and others when they have not. It seems like the last few months, when buyers have experienced longer waiting times than the typical for right now, those contracts always had delayed closings. So, to me it looks like they are taking advantage of the rule right now. There have been other periods where all contracts seemed to be coming back in the typical time, regardless of closing date.
Second, I have heard that even if the response slips past the closing date, all the closing companies are hesitant to push this rule with Disney/OCC. A few months ago, when many of the responses were taking 30-40 days, with most contracts being written with a 30 day closing window, I never heard of a single case of the closing company pushing this rule.

Have you noticed whether there are any qualitative factors that influence this? Obviously the big variables that everyone focuses on are resort, price per point, points available, and contract size. But have we noticed whether they're more or less aggressive based on factors like Use Year, international seller, seller-subsidized closing costs, etc.?

 

[DaveNan]

Have you noticed whether there are any qualitative factors that influence this? Obviously the big variables that everyone focuses on are resort, price per point, points available, and contract size. But have we noticed whether they're more or less aggressive based on factors like Use Year, international seller, seller-subsidized closing costs, etc.?

There usually aren't a lot of delayed closing contracts to go on at any point in time so I haven't noticed any patterns. To me, it seems like there have been 3 times in the last 5 years where 2-3 buyers around the same time are frustrated with Disney taking longer on my contract (I was in one of those groups in 2017) and all those contracts being postponed closing. While most the time, these frustrated buyers were not present in the board and if you looked at the few contracts that had comments about delayed closing in the "comment" field or in the thread description they were getting answers in the typical time period.
I think it is more of a time period based application of the practice, then contract details.

If your second question is more about pass or claim versus time period, many folks have made the observation that international seller contracts are less likely to be taken. I can only remember 1-2 cases of taken international seller contracts, even though many of them have been at prices that I would have expected them to be taken. International contracts are avoided by some buyers because of concerns with the FIRPA (not right but close.. foreign real estate withholding rules) concerns, or concerns over closing time. Foreign sellers have a more difficult process on getting the notary, and can sometimes add to the closing timeline.