15 Jul DVC Suspends Right of First Refusal (ROFR) During COVID-19 Closure!
Disney Suspends Right of First Refusal (ROFR) During COVID-19 Closure! How Does This Impact Buyers and Sellers?
Despite demand for Disney Vacation Club (DVC) Resales remaining very high, Disney has not exercised their right of first refusal (ROFR) for the past two months, April and May, while Disney Parks and Resorts have remained closed due to COVID-19. Although Disney Springs has opened in a limited capacity, DVC Resorts will be opening June 22nd, and Disney’s theme parks will be opening in July, we anticipate the same lack of buy backs in June, with very little, or maybe even no exercising of Disney’s right of first refusal.
Buyers finding a good deal and hoping to get a reduced price contract, avoiding ROFR, should move quickly, as prices seem to be creeping up with demand of DVC Resale contracts for sale outpacing supply. Sellers will likely see this trend of quickly increasing resale prices continue, with Disney opening and a lot of pent-up demand from buyers who’ve been unsure about when they’d be able to use points to vacation again.
It’s definitely a unique time for both buyers and sellers in the DVC Resale market.
What is ROFR (Right of First Refusal?)
Disney Vacation Club has the right to purchase DVC resale contracts at the price and terms a buyer and seller have agreed upon in a contract. This is Right of First Refusal or “ROFR”.
All contracts must be sent to Disney to evaluate and determine if they wish to step in and become the buyer. This process usually takes less than 30 days, and Disney may step in and purchase the property themselves. If this happens, the seller still has a successful sale, however the buyer must then find another contract to purchase. If you’re a buyer, it’s important to consult with us at DVC Resale Experts if you’d like to ensure your offer is high enough to avoid this situation. Once DVC chooses to exercise their Right of First Refusal, a buyer will not have the opportunity to make a better offer to keep the contract.
View all DVC resale listings, as well as learn more about buying and selling through DVC Resale Experts. As always, please don’t hesitate to reach out to us with any questions at 844-DVC-FANS (382-3267) or Info@DVCResaleExperts.com.