What is ROFR

[leeleelew]

Sorry, can't follow this. Please explain ROFR. Thanks.

 

[jel0511]

ROFR stands for Right of First Refusal. It is in every DVC contract that DVC sells. Basically what it means is if any owner of a DVC contract decides to sell it, DVC has the right to evaluate the deal and can buy it back from the seller at the agreed upon terms. The buyer can really do nothing but wait, and hopes DVC passes. There have been some people reporting they were able to successfully counter DVC's ROFR to their seller, but those are usually few and far between.

 

[AmyBeth68]

ROFR is Right of First Refusal. Essentially, if somebody wishes to buy a resale of a DVC property, Disney has the right to look over the contract and decide if they would like to buy it. Therefore, every resale contract must go before Disney to be reviewed, if they feel the price is too low or if they like the contract for some other reason, they will purchase it.

I personally feel, even though it meant the loss of my contract, that this is one of the reasons why DVC is such a valuable "timeshare". Disney maintains the standards and price for the current owners by reviewing every contract and assuring that the value of their properties is not undersold. Because I hope to be a DVC owner someday, this makes me feel pretty confident in purchasing DVC.

Just my 2 cents. I bet the veterans here can add more detail to this .

 

[RuthnPaul]

Originally posted by jel0511
There have been some people reporting they were able to successfully counter DVC's ROFR to their seller, but those are usually few and far between.

Lori, the agent we're working with on our VWL contract told us that if Disney exercises ROFR, that the buyer is out of the picture and cannot counter. Perhaps it depends on the broker used???

 

[jel0511]

Originally posted by RuthnPaul
Lori, the agent we're working with on our VWL contract told us that if Disney exercises ROFR, that the buyer is out of the picture and cannot counter. Perhaps it depends on the broker used???

I've read successful posts here on the DIS of people being able to counter ROFR, but it is definately the minority. I did ask my broker about it, and he said that EVERY TIME he did offer a counter offer to a seller, it was turned down because they can close in as little as 2 days with DVC as opposed to waiting a month or more for a few hundred $$$, most want their money. Also, if the broker doesn't hear about ROFR, and sends all paperwork to a separate closing agency (TTS uses an in house closing agency) they don't hear about ROFR until it is too late. That might be the case with the agency you're using.

 

[leeleelew]

Thanks everyone, now I remember!! Anothe one of those senior moments!

 

[Dean]

Originally posted by RuthnPaul
Lori, the agent we're working with on our VWL contract told us that if Disney exercises ROFR, that the buyer is out of the picture and cannot counter. Perhaps it depends on the broker used???

And I wonder why they'd refuse to do that. Could it be they're trying to get two commissions? It can and has been done. But since DVC lets the seller know, by the time the broker and buyer are aware, it may be too late. If one is anticipating this action, do the leg work ahead of time and notify the seller and broker. If they refuse to do it in case DVC takes it, don't work with them again.