Selling and ROFR

[DOOGIERUNNER]

I am considering selling two of my contracts and have a question. If Disney exercises ROFR, then must I sell to Disney at that price or do I have the option to hold onto my contracts?

Thanks.

 

[bicker]

I believe that by the time you reach the ROFR, you are committed to the sale.

Regardless, there isn't much reason why a seller should care who they sell to, since they get the same money regardless.

 

[DOOGIERUNNER]

The reason I ask is because I've seen a few no reserve bids on ebay. A person is better off to use a reserve auction, but in the case they don't and the winning bid is low, I wondered if the seller is committed to ROFR.

Thanks.

 

[debbie in Seattle]

Yep, you're committed. Just tried selling my BWV and it got ROFR'd by DVC. Feel badly for the buyer, waiting all that time to have to start all over. I get my $$ either way.

 

[Dean]

I have no specific experience but have gotten the impression DVC would have said OK, if we backed out. Are you're talking about doing this through ebay with a low or no reserve with the idea that DVC will bail you out if the price is received is too low? You can certainly put requirements in the contract that DVC couldn't reasonably meed. I've done it but for an entirely different reason. We were actually doing a swap of timeshares. DVC came back and wanted the dollar values. My first inclination was to say no, the contract is as is. But we could honestly and fairly put he dollar values for both items at a price high enough to pass ROFR, so we did. Part of the ROFR paperwork DVC sends you (I had another sale bought by ROFR), was an agreement not to sue them related to he transaction. I refused to sign it and they backed down and closed the ROFR. I am convinced that if I'd simply said no and I'd keep it, they would have said OK. Remember DVC isn't doing the buy back to resell them but rather to funnel buyers to retail.

 

[calypso*a*go-go]

Have you considered posting an ad through Timeshare Users Group? I believe it's only $10 (I'm sure someone will correct me on that if needed). I don't know how that compares with ebay's fees but since you have decided to sell this yourself vs. using a broker...you might want to look @ TUG as an option vs. a no-reserve auction.

 

[msdis]

Yep, you're committed. Just tried selling my BWV and it got ROFR'd by DVC. Feel badly for the buyer, waiting all that time to have to start all over. I get my $$ either way.

Same here.

 

[First Wave]

I am considering selling two of my contracts and have a question. If Disney exercises ROFR, then must I sell to Disney at that price or do I have the option to hold onto my contracts?

Thanks.

Yes, you're committed. Whoever your broker is has done the work, found a buyer, you agreed to the price and the deal is done. If Disney steps in and buys it at that price, you still owe the broker the commission. It wouldn't be a wise decision to pull out at that time. Both Disney and your broker can legally require that you go through with the sale.

My question is, why wouldn't you go through with it? If you've already agreed to the price with the buyer, and Disney steps in, why would you want to change your mind at that point? Perhaps you think you sold it too cheaply. With ROFR the way it is, nobody knows what the exact price is. Be happy that you got your price, get your money and live happily every after.

First Wave