Disney ROFR Decision, How Am I Notified?

Understanding the Disney ROFR Process

The Disney ROFR (Right of First Refusal) decision is a pivotal step in the Disney Vacation Club resale journey. Whether you’re buying or selling, awaiting Disney's contract review can be anxiety-inducing. Here’s an overview of what to expect, how you'll be informed, and the steps to take following a decision.

What is Disney's Right of First Refusal?

Disney's Right of First Refusal is a contractual right that allows Disney to purchase a Disney Vacation Club resale contract under the same terms as a prospective buyer. This means that if you agree to sell your DVC contract to a buyer, Disney has the option to step in and buy the contract instead. This process ensures that Disney maintains a level of control over the ownership and pricing of its timeshare properties.

How Long Does the ROFR Process Take?

Once your Disney Vacation Club resale contract is signed, Disney evaluates the agreement to decide if it will purchase the contract on the same terms as the buyer. This review period usually ranges from 20 to 30 days but may vary. During this time, Disney assesses the contract to determine if it aligns with their current acquisition strategy.

How Will You Be Notified?

After Disney makes a decision regarding their Right of First Refusal, both the buyer and seller will be notified through their respective real estate agents or brokers. Typically, communication is made via email or phone call, providing a prompt update on whether Disney has chosen to exercise its ROFR or allow the sale to proceed as planned.

Steps to Take Following a ROFR Decision

If Disney Exercises ROFR

If Disney decides to exercise its Right of First Refusal, they will purchase the contract under the same terms agreed upon with the buyer. In this scenario, the original buyer will not acquire the contract, and the seller will proceed with the sale to Disney. The seller will receive the agreed-upon sale price, and the process concludes with Disney as the new owner.

If Disney Waives ROFR

If Disney waives its Right of First Refusal, the sale can proceed between the original buyer and seller. The parties will move forward with the closing process, which involves finalizing the transfer of ownership and completing any necessary paperwork. This step typically involves the assistance of a title company or closing agent to ensure all legal requirements are met.

Practical Tips for Navigating the ROFR Process

• Work with Experienced Professionals: Engage with a knowledgeable DVC resale broker who can guide you through the process and provide insights into Disney's ROFR tendencies.
• Set Realistic Expectations: Understand that the ROFR process can take time, and prepare for the possibility that Disney may exercise its right to purchase the contract.
• Stay Informed: Keep in regular contact with your broker or agent to receive timely updates on the status of your contract and any decisions made by Disney.
• Consider Contract Details: Be aware of factors that may influence Disney's decision, such as the price per point and the specific resort involved, as these can impact the likelihood of Disney exercising ROFR.

Conclusion

The Disney ROFR process is an integral part of the DVC resale experience. By understanding how it works and what to expect, you can navigate this step with greater confidence. Whether Disney decides to exercise its right or waive it, being prepared and informed will help ensure a smoother transaction. For more insights and assistance, consider consulting with experienced DVC resale professionals who can provide valuable guidance throughout your journey.