Disney ROFR Resale Timeline and How Long It Takes

Understanding the Disney ROFR Resale Timeline & What to Expect

When purchasing a Disney Vacation Club (DVC) contract through the resale market, it's essential to understand the timeline and process involved, particularly the Right of First Refusal (ROFR). This process can significantly impact the duration of your purchase, and knowing what to expect can help you plan accordingly.

What is Disney's Right of First Refusal (ROFR)?

Disney's Right of First Refusal is a contractual right that allows Disney to step in and purchase a DVC resale contract before the buyer completes the transaction. This means that if you agree to purchase a resale contract, Disney has the option to buy it under the same terms and conditions. This right is in place to help Disney maintain control over the pricing and availability of DVC contracts on the resale market.

Why Does Disney Exercise ROFR?

Disney exercises ROFR to ensure that resale prices do not fall too low, which could devalue the DVC brand and affect the perceived value of owning a DVC membership. By purchasing contracts at the agreed resale price, Disney can maintain a stable market value for its properties. This strategy also allows Disney to replenish its inventory of DVC contracts, which it can then sell directly to new members at current market rates.

The ROFR Process and Timeline

The ROFR process is a critical step in the DVC resale timeline. Once a buyer and seller agree on the terms of the sale, the contract is submitted to Disney for review. Disney typically has 30 days to decide whether to exercise its ROFR. During this period, the buyer and seller must wait for Disney's decision before proceeding with the sale.

Steps in the ROFR Process

• Offer Acceptance: The buyer and seller agree on the terms of the sale, and the contract is signed.
• Submission to Disney: The signed contract is submitted to Disney for ROFR review.
• Disney's Decision: Disney reviews the contract and decides whether to exercise its ROFR within approximately 30 days.
• Proceeding with Sale: If Disney waives its ROFR, the sale can proceed. If Disney exercises its ROFR, the contract is purchased by Disney under the agreed terms.

What Happens After ROFR?

If Disney waives its ROFR, the resale process continues. The next steps typically involve the closing process, which includes title searches, document preparation, and the transfer of ownership. This phase usually takes an additional 30 to 60 days, depending on the efficiency of the title company and the responsiveness of the parties involved.

Tips for Navigating the ROFR Process

• Work with Experienced Brokers: Engaging a knowledgeable DVC resale broker can help you navigate the complexities of the ROFR process and increase your chances of a successful purchase.
• Set Realistic Expectations: Understand that the ROFR process can take time, and be prepared for potential delays.
• Consider ROFR Trends: Some resorts and contract sizes are more likely to be bought back by Disney. Researching recent ROFR trends can help you make informed decisions.

Conclusion

The Disney ROFR resale timeline is an essential consideration for anyone looking to purchase a DVC contract on the resale market. By understanding the process and preparing for potential outcomes, buyers can navigate the resale journey more smoothly. While the ROFR process can extend the timeline of your purchase, being informed and working with experienced professionals can help ensure a successful transaction.