ROFR-What happens

[debbie in Seattle]

What happens, as a seller, if Disney exercises their ROFR?

 

[RobDoc]

If DVC exercises ROFR, they simply buy the contract at the same price. The seller will get exactly the same amount they have already agreed to when accepting the offer.

The buyer will get any funds returned to them.

 

[calypso*a*go-go]

Debbie -- Are you really selling due to the bad experience you encountered recently, or did you just decide DVC wasn't really for you?

As for ROFR, if Disney buys the points back...I would think the whole process would actually go a little quicker than selling it to a private party.

 

[debbie in Seattle]

Debbie -- Are you really selling due to the bad experience you encountered recently, or did you just decide DVC wasn't really for you?
**********************************************************

Actually, we had bought 2/one at the BW and one at the BC. Decided after the bad experience we had and when I wrote a letter of concern (basically cut/pasted my post from here) to DVC and all I got back was a adlibbed reply, decided perhaps only one was enough. IF I have the same issues this upcoming trip (arriving 11/28) will know for sure, DVC isn't for us. Hoping that isn't so, have already booked for 2006 F&W!

 

[Kelly&John]

Hey Doc,

DVD exercised their first right of refusal on my contracts. How long before I get the closing documents? I received the letters by FedEx. The letter was dated November 4th. I still haven't received the closing documents. Is that normal?

Kelly

 

[RobDoc]

I don't know how much time is usually involved for the closing. It sounds as though Disney is handling the closing themselves or was that spelled out in the offer?

I suppose it could easily take a couple of weeks to get the documents drawn up. You may be able to find out by calling MS/accounting to check on the status of your sale.

Good luck!

 

[Kelly&John]

Thanks Doc. I've got calls into DVD. I guess I'll just have to wait and see.

 

[calypso*a*go-go]

IF I have the same issues this upcoming trip (arriving 11/28) will know for sure, DVC isn't for us. Hoping that isn't so, have already booked for 2006 F&W!

Here's to a wonderful trip!!!

BTW, have enough wine during the F&W...and some of the issues may just disappear.

 

[fwm]

If Disney exercises the ROFR I assume the broker still gets a commission. Is that correct?

 

[DebbieB]

If Disney exercises the ROFR I assume the broker still gets a commission. Is that correct?

Yes. Everything is the same as originally agreed, except DVC takes the place of the buyer.

 

[sigillaria]

Do you have to have an offer from a 3rd party before you notify DIS? Can you just tell DIS you are selling to prevent a disappointment to the 3rd party?

 

[RobDoc]

Do you have to have an offer from a 3rd party before you notify DIS? Can you just tell DIS you are selling to prevent a disappointment to the 3rd party?

You cannot complete the sale until an accepted offer has passed ROFR. ROFR is required before the deed can be recorded and the new owner listed with DVC. There is no way to get around the requirement as the ownership will just be left in the sellers name until the proper process is followed.

 

[Sheriff Woody]

If I'm the seller, and I get ROFR'd, then later change my mind and do not sell to Disney, do I still owe the commission to the original listing broker? Seems to me I should be able to change my mind at any time and not owe anything. If I offer to sell my home and later my circumstances change and end up not selling I don't think I owe the realtor any commission.

 

[pat@dvcstore]

Yes, unfortunately, commission is due the broker. He did the work, found the original buyer and handled ROFR.

The seller, by signing the contract, has agreed to the specified terms and the commission. If and when DVD steps in, everything is taken over by Disney. The commission is still due the broker.

If the seller changes his mind, he is still responsible for the commission. There's just no way around it.

We, at The Timeshare Store, wish that wasn't the case. But, as you may recall, Disney will not allow us to go back to the seller with a higher bid once they've made their decision. That's unfortunate as well.

Pat

 

[DebbieB]

If I'm the seller, and I get ROFR'd, then later change my mind and do not sell to Disney, do I still owe the commission to the original listing broker? Seems to me I should be able to change my mind at any time and not owe anything. If I offer to sell my home and later my circumstances change and end up not selling I don't think I owe the realtor any commission.

I don't think the seller gets ROFR'd, it's the buyer who gets ROFR'd. The deal remains the same for the seller.

Yes, unfortunately, commission is due the broker. He did the work, found the original buyer and handled ROFR.

The seller, by signing the contract, has agreed to the specified terms and the commission. If and when DVD steps in, everything is taken over by Disney. The commission is still due the broker.

If the seller changes his mind, he is still responsible for the commission. There's just no way around it.

We, at The Timeshare Store, wish that wasn't the case. But, as you may recall, Disney will not allow us to go back to the seller with a higher bid once they've made their decision. That's unfortunate as well.

Pat

If Disney exercises ROFR, does the seller still have the opportunity to change their mind and not sell? Or is it a done deal? I don't have the contract in front of me, but I thought that it said that DVC can close immediately after ROFR.