"rofr" ???

[Dalpal]

Hi guys!
We are thinking of DVC and I have been lurking on theses boards for a time.
I keep seeing things about "ROFR". What is this? Forgive my ignorance.
Also is it true that the only resort for sale is SSR? How many yrs is it for? If I bought resale is that what ever yrs are left on that resale or the same as any resort when you buy in?
Sorry for all th ???I am trying to understand it all.
Betsy

 

[Dan Murfman]

ROFR is Right of first refusal. Which means after coming to agreement with a seller to buy their contract it must be submitted to Disney. If they feel the price is too low they can buy the contract instead.

 

[Dalpal]

Ahh
Thanks. You read and learn! I feel a little smarter now.
Only a little mind you!

 

[JoeThaNo1Stunna]

So if you buy directly from Disney, you do not go through ROFR?

 

[bobbiwoz]

That's correct, Joe, if you buy through Disney there is no such thing as ROFR, you pay the going rate. The only leeway on price is Magical Beginnings. In this you don't take the current year points, you get a discount for starting with the next use year's points. Since SSR isn't completley finished, I don't know exactly how that works, but if you're interested there are people here who do know.

Bobbi

 

[tjkraz]

Originally posted by JoeThaNo1Stunna
So if you buy directly from Disney, you do not go through ROFR?

Correct. DVC has fixed sale prices. There is no negotiation involved.

When you buy a resale, the transaction occurs completely independent of DVC. You negotiate with the current owner and agree upon a sale price. The sale agreement then goes before DVC and they have 30 days in which they may elect to buy the contract themselves at your agreed-upon terms. The seller still gets the same money, but the prospective buyer receives nothing.

Resale prices typically run in the $68 - 75 per point range. Go much lower than that and there's a chance DVC will take the contract.

Most agreements will stipulate that the buyer pay closing costs (figure $400-500 regardless of the size of the contract) and dues on any unused points.

To answer the OPs other question, contracts at Saratoga Springs end on 1/31/2054. All of the other resorts (Boardwalk, Beach Club, etc.) end on 1/31/2042. Right now, this 12 year difference is the primary reason that DVC can charge about $15-20 more per point for SSR than you will pay on the resale market.

 

[Caskbill]

Originally posted by JoeThaNo1Stunna
So if you buy directly from Disney, you do not go through ROFR?

Correct. ROFR is Disney's chance to purchase a pending sale for the same amount as agreed upon between buyer and seller within a private transaction. In other words, if a private buyer offers a private seller $xx per point, Disney has the right to buy that contract under those same conditions. In either case the seller gets what they agreed to. The buyer is just out of luck and has to go look somewhere else for a resale. If the price is high enough, Disney will not exercise their ROFR and the original deal between seller and buyer proceeds.


If you purchase a resale, the length of the contract still holds the original end dates. For SSR those contracts all end on 1-31-2054. All the other resorts end on 1-31-2042.

Edited: tjkraz....looks like we posted at the same time, with basically the same response....

 

[jxgriffi]

Originally posted by Dalpal
Sorry for all th ???I am trying to understand it all.

No reason to be sorry at all. We all start somewhere. I have only been looking into this seriously for the last couple of weeks. Everyone here is very friendly and open with suggestions. You can learn a lot rather quickly....just ask and we'll try to help the best we can. We have all been there....

Enjoy...and welcome to the boards.

 

[pumpkinboy]

"Rofr" is the sound the dog makes as it destroys your child's favorite toy.