What is ROFR???

[pigget74]

New here but have seen ROFR several times and have no clue what it means. Can someone please tell me?
HEather

 

[sap1227]

It is Right of First Refusal. It means Disney has the right to buy the resale back instead of letting it go to the potential buyer (at the price the buyer offered). Someone else will probably explain it better!

 

[wdeversole]

All resales must be submitted to Disney once the terms have been set between the buyer and seller.

Disney then has the right of buying the contract back at those terms, if they choose to.

 

[DebbieB]

It's written into the contract to protect members from having the worth of their memberships go down by people selling low. Also helps DVC sell at their rate. For example, if people were able to buy resales at $60 per point, lots would do that rather than buy direct from DVC at $84. So DVC does not allow low offers to go through, they buy it themselves at the low rate, then they can resell at their rate. Right now it looks like from posts on this board that DVC is buying back contracts lower than $70-$72.

 

[Granny]

All correct responses, and I'll add this.

I don't think the ROFR is to protect members as much as it is to protect new DVC sales. If the resale market dropped too low, DVD would have a very difficult time selling new points at new resorts.

Probably not as big of a deal for BCV given all it's built-in demand and tieing SAB to membership there....


...but very critical when trying to sell SSR. IMHO, that's why we've seen the sudden interest by Disney in the ROFR in the past few months. Trying to protect the market for SSR.

Just my two cents.