Selling my CCV contract and Disney exercised ROFR

[velocistar237]

Hello,

Has anyone else sold a DVC contract and had Disney take it back (exercise ROFR)?

I am hoping someone here can share their experience and provide some insight on what I can expect next.

My husband and I enlisted the help of a resale broker to list our Copper Creek contract. We received an offer for full asking price and it was sent to Disney for ROFR. Much to my surprise, Disney has decided to exercise ROFR on it! Our broker reached out and told us that someone from Disney would be contacting us to close on the contract, but that was weeks ago.

Has this happened to anyone else? How long until you heard from Disney? We haven't heard anything and we have no idea who to contact with our questions. Do we still pay the broker's commission for listing our contract? Honestly, at this point we want to say "forget the whole thing" and just keep the contract for now, but we know that is probably not an option. We just HATE the idea that Disney will buy this contract back, mark it up significantly and then resell it. This was a much more tolerable process when we thought we were selling our contract to another family for a good deal.

Any advice would be much appreciated!

 

[velocistar237]

Hello,

I posted this in the Disney Resort thread but I see that I may get more help here...

Has anyone else sold a DVC contract and had Disney take it back (exercise ROFR)?

I am hoping someone here can share their experience and provide some insight on what I can expect next.

My husband and I enlisted the help of a resale broker to list our Copper Creek contract. We received an offer for full asking price and it was sent to Disney for ROFR. Much to my surprise, Disney has decided to exercise ROFR on it! Our broker reached out and told us that someone from Disney would be contacting us to close on the contract, but that was weeks ago.

Has this happened to anyone else? How long until you heard from Disney? We haven't heard anything and we have no idea who to contact with our questions. Do we still pay the broker's commission for listing our contract? Honestly, at this point we want to say "forget the whole thing" and just keep the contract for now, but we know that is probably not an option. We just HATE the idea that Disney will buy this contract back, mark it up significantly and then resell it. This was a much more tolerable process when we thought we were selling our contract to another family for a good deal.

Any advice would be much appreciated!

 

[princesscinderella]

With member services shut down a few weeks ago it really bottle necked the whole resale process. I’d reach out to your broker and let them know you decided not to sell it, you would still owe them commission, I don’t think you are forced to sell it to Disney just because they ROFRed it since they haven’t paid anything yet.

 

[velocistar237]

With member services shut down a few weeks ago it really bottle necked the whole resale process. I’d reach out to your broker and let them know you decided not to sell it, you would still owe them commission, I don’t think you are forced to sell it to Disney just because they ROFRed it since they haven’t paid anything yet.

Thank you for the advice! I reached out to our broker and will see what they say!

 

[CCV]

DVC purchased one of my contracts back in May. It was actually a very easy process (much smoother than normal resale process). I got an email from DVC reps within a day. From the time I was notified of them exercising ROFR to the time I received funds was right at 30 days. It took them 3 weeks to get me the final closing docs and then wired me the money as soon as they got my docs back in hand. They were very responsive when I asked questions.

I'd double check with your broker to see if they got any correspondence. Nancy Kirsch is who I dealt with at DVC. The brokers will still get their commission as detailed in the contract. Your net proceeds will be the exact same regardless of who purchases. I don't think there is any way you can back out at this point without paying whatever penalty is detailed in your contract.

 

[CookieandOatmeal]

You might want to post this in the DVC forum. You'll definitely get responses there as there are posters who as sellers have gotten their contracts bought back by Disney

 

[supersnoop]

Who is your broker? I'm under the impression that Disney cuts a check almost immediately.

 

[thanxfornoticin]

Well, Disney always has the option to do just this. As the seller, it really shouldn't impact your bottom line much - you're just selling to a different party. It's obviously a much bigger deal for the buyers. Disney does seem like they might be buying up more of these contracts lately. Interesting.

 

[cvjw]

You need to contact your broker and see what is going on. They are the ones who will provide answers for you.

 

[CarolMN]

Merged same thread from Mousecellaneous with this one.

 

[velocistar237]

Merged same thread from Mousecellaneous with this one.

Thank you!

 

[Sandisw]

Just a reminder to all, you must post the link to all brokers you may want to discuss,

When they are filtered, it means you should not discuss them or simply post their names, Thank you.

 

[achinforsomebacon]

Honestly, at this point we want to say "forget the whole thing" and just keep the contract for now, but we know that is probably not an option. We just HATE the idea that Disney will buy this contract back, mark it up significantly and then resell it. This was a much more tolerable process when we thought we were selling our contract to another family for a good deal.

So this is interesting. What's stopping people from just backing out as a seller after Disney decides they want the contract? I'm assuming that's still an option since the paperwork hasn't been finalized yet. You might have to deal with the broker fee but maybe they would work something out if you relisted and they got their cut of a higher price. In theory Disney taking it would mean the price was too low and the contract could be sold for more, especially in the current resale market.

To be clear, I would never suggest this if Disney didn't take it, but why not stick it to the man?

 

[Paul Stupin]

How bout this. Back out of the deal with Disney, then re-list the contract at a high enough price that it won’t get ROFRed with the same broker, so long as he or she waives the first commission. The broker will get a bigger commission from a higher priced sale, you will wind up with more money, and Disney won’t get the contract.

 

[Paul Stupin]

Sorry…didn’t realize the poster right before me suggested the same plan!

 

[DVCanadian]

Curious to understand the posts here. Seller is getting the full price they asked for. Not sure why people are advising them to try and back out. If you don’t want to sell, don’t sell, but to back out because you got full price doesn’t make any sense. Get the cash and move on with your life. I don’t see how prolonging it makes any sense. Is 5e thought that if Disney is taking it you could have got $500 more and now want more money?

Also I suspect you can’t back out, that’s the point of the legal documents the seller signed.

 

[masupo]

Curious to understand the posts here. Seller is getting the full price they asked for. Not sure why people are advising them to try and back out. If you don’t want to sell, don’t sell, but to back out because you got full price doesn’t make any sense. Get the cash and move on with your life. I don’t see how prolonging it makes any sense. Is 5e thought that if Disney is taking it you could have got $500 more and now want more money?

Also I suspect you can’t back out, that’s the point of the legal documents the seller signed.

I think the OP made it pretty clear that it's not about getting more money. It's that Disney is taking it from someone who wanted to buy it, and then will resell it at a profit. They would rather have someone other than Disney get the contract.

People are spitballing ideas - one is to relist it at a higher price to avoid Disney taking it. Disney thinks it's appealing at their current price, so they would need to list higher.

As for the legal contract, there are legal ways to get out of it. The seller would still owe the broker's commission unless they negotiated with them.

It's a lot of hoops to jump through and I'm not sure it's worth it, but the option is there.

 

[Sandisw]

I think the OP made it pretty clear that it's not about getting more money. It's that Disney is taking it from someone who wanted to buy it, and then will resell it at a profit. They would rather have someone other than Disney get the contract.

People are spitballing ideas - one is to relist it at a higher price to avoid Disney taking it. Disney thinks it's appealing at their current price, so they would need to list higher.

As for the legal contract, there are legal ways to get out of it. The seller would still owe the broker's commission unless they negotiated with them.

It's a lot of hoops to jump through and I'm not sure it's worth it, but the option is there.

Unless the original buyer wants to pay more, that person would be out of luck regardless.

Personally, would have no issue if Disney buys. No way of knowing what the person buying will do with it. Maybe they will try to flip it down the road if prices go up.

Again ,OP can certainly back out but I would be shocked if a broker waived commission on the sale, even with a realist.

 

[stwaldman]

Unless the original buyer wants to pay more, that person would be out of luck regardless.

Personally, would have no issue if Disney buys. No way of knowing what the person buying will do with it. Maybe they will try to flip it down the road if prices go up.

Again ,OP can certainly back out but I would be shocked if a broker waived commission on the sale, even with a realist.

Yeah, it's not like Disney isn't repackaging it to...another, possibly very nice family. All of us resale buyers sweated out this process

 

[supersnoop]

There aren't really "legal" ways to get out of it. The contract may or may not specify and/or limit the liability of either party in the event of a default, but it might not. Some of my contracts state that the seller would be responsible for all fees incurred by the either party. Other say you'd be "liable for any claims or caused action arising out of this paragraph." I'm not up to speed on Florida's real estate law, but I doubt Disney could compel specific performance. If the seller relists at a higher price, Disney probably could sue to recover the difference and still take the contract. Do you really want to see if Disney is willing to spend the money on attorney fees to maintain the integrity of the ROFR process? And are you willing to risk a judgment that includes you paying Disney's attorney's fees?