DVC ROFR Process: What to Expect After Signing

Understanding the DVC ROFR Process After Contract Signing

When purchasing a Disney Vacation Club (DVC) contract on the resale market, understanding the Right of First Refusal (ROFR) process is crucial. This step can significantly impact the timeline and outcome of your purchase. Here's what you need to know about the ROFR process and what to expect after signing your contract.

What is the Right of First Refusal (ROFR)?

The Right of First Refusal is a contractual right that allows Disney to step in and purchase a DVC resale contract under the same terms as the buyer's offer. This means that after you and the seller agree on the terms and sign the contract, Disney has the option to buy the contract instead of allowing the sale to proceed to you. This process ensures that Disney maintains a level of control over the ownership and pricing of DVC contracts.

Why Does Disney Exercise ROFR?

Disney exercises ROFR for several reasons. Primarily, it helps maintain the value of DVC contracts by preventing them from being sold at prices significantly below market value. By purchasing contracts through ROFR, Disney can also manage the supply of available contracts and ensure that the DVC membership remains attractive to both current and prospective members. Additionally, it allows Disney to replenish its inventory of contracts, which can then be sold directly to new members at current market rates.

Timeline of the ROFR Process

Once the resale contract is signed, it is submitted to Disney for the ROFR review. This process typically takes about 30 days, but the exact duration can vary. During this time, Disney will evaluate the contract terms and decide whether to exercise its right. If Disney chooses to waive its ROFR, the sale proceeds to the buyer. If Disney exercises its ROFR, they will purchase the contract under the agreed terms, and the buyer will need to continue their search for another contract.

Factors Influencing Disney's ROFR Decision

While Disney does not publicly disclose the specific criteria used to determine whether to exercise ROFR, several factors are generally believed to influence their decision:

• Price: Contracts priced significantly below market value are more likely to be bought back by Disney.
• Resort Popularity: Contracts from high-demand resorts may be more attractive for Disney to repurchase.
• Contract Size: Larger point contracts might be more appealing for Disney to acquire and resell.

What Happens After ROFR is Waived?

If Disney waives its ROFR, the resale process continues. The next steps typically involve finalizing the closing documents and transferring ownership. This part of the process can take an additional 30 to 60 days. During this time, the closing company will handle the necessary paperwork, including the deed transfer and recording. Once completed, you will officially become a DVC member and can begin using your points.

Tips for Navigating the ROFR Process

• Research Market Prices: Before making an offer, research recent sales data to ensure your offer is competitive yet reasonable.
• Be Patient: The ROFR process can take time, so be prepared for potential delays and remain patient throughout.
• Consider Multiple Offers: If you're concerned about ROFR, consider making offers on multiple contracts to increase your chances of securing one.
• Work with Experienced Brokers: A knowledgeable DVC resale broker can provide valuable insights and guidance throughout the process.

Conclusion

Understanding the DVC ROFR process is essential for anyone purchasing a resale contract. While it introduces an element of uncertainty, being informed and prepared can help you navigate this step successfully. By knowing what to expect and working with experienced professionals, you can enhance your chances of securing the DVC contract that meets your needs and preferences.