09 Feb Can You Avoid Disney ROFR On Resale DVC?
Has this happened to you? You find the perfect resale DVC listing and submit an offer. You are thrilled because it’s the home resort you want with a great number of points and a use year that fits your vacation patterns. You reach the Right of First Refusal part of the process and.. Disney decides to buy the contract back for the company instead of letting you buy it. Bummer. In the Disney Vacation Club fine print, Disney has the ROFR or the right to purchase a contract back first. Buying resale DVC points is definitely still worth it even with the possibility of having to put a bid on more than one contract before actually having the sale go through. But can you avoid Disney ROFR on resale DVC?
Can you avoid Disney ROFR on resale DVC?
DVC Resale Experts is happy to guide resale DVC buyers in submitting a competitive offer based on current numbers and Disney’s buying patterns. There’s only so much one can do to try and avoid a ROFR buyback as it’s ultimately Disney Vacation Club’s decision. Sometimes it’s more clear and easier to tell if it’s more likely that Disney might purchase a contract back. You might be wondering how to tell if Disney is more interested in some contracts or properties than others. In our ROFR DVC 2021 annual stats post we can see some of the trends of Disney’s buyback habits. We also have a monthly ROFR report noting which properties Disney Vacation Club has bought back the most during the month prior. In these kinds of posts we often compare prices as well.
No ROFR For Resale DVC Contracts with International Owners?
There is one way to have a more definite experience when buying resale DVC points. That’s by submitting an offer on a foreign owned contract. There is no hard and fast rule that Disney will never exercise ROFR on a contract sold by a resident outside of the U.S. but we have never seen them do so. In the past year, DVC Resale Experts has seen 47 sales close for international residents and all of them passed ROFR. For some unknown reason, Disney doesn’t seem to buy back foreign owned contracts. Knowing this enables buyers to have peace of mind and confidence they’ll be able to close on their resale contract. This is especially exciting when the resale DVC contract is listed at a price well below what Disney would normally buy back through ROFR. The only downside is that it can sometimes take a little longer for these sales to close as notaries may be more difficult to locate. Our post How Long Does It Take to Buy DVC Resale? goes over the process for contracts with a domestic buyer and seller. When it comes to foreign versus domestic resale DVC, the closing timeline will be different. As for the contract-to-close timeframe and the difference between foreign and domestic contracts, we tend to add in an extra 10 days to the estimated closing date for foreign contracts to allow for additional notarization requirements depending on the county of residence as well as the additional transit time for document packets coming from outside of the US.
So how will you even know if a resale DVC listing is being sold by someone from a country other than the United States? Each resale DVC listing includes information you need to know about the contract, resort and specifics related to that sale in particular. Some details are common and things you know to look for like the overall price and price per point, the amount of points for the membership, dues, use year, points available and deed expiration. Each listing also has a comment section with additional details. This is where you can find more detailed information like, ‘200 points were banked from October 2020 to 2021, and need to be used by September 30, 2022.’ This comment section is also where it will be noted if a listing has a foreign owner.
DVC Resale Experts is an independent licensed real estate broker specializing in resale DVC and serving clients all around the world. You can expect pixie dusted service and professional insight from the team’s decades of experience selling DVC points. Get in touch today to buy resale DVC points or sell your DVC contract with an Expert!