Experts That Know All About DVC ROFR
Every contract that revolves around a property in Disney has a DVC ROFR contract clause in them, for instance. This means Disney has the ability to purchase your property back, in regard to some requirements and events occurring.
DVC ROFR or DVC’s Right Of First Refusal is more common than you think, and if you own a property in Disney, then you absolutely must know all the ins and outs of the clause, or else you'll get into some serious legal trouble if not done correctly. This can be avoided by tapping the help of professionals like DVC Resale Experts.
What Is A DVC ROFR Contract?
DVC stands for Disney Vacation Club, which is a timeshare sort of membership where you can purchase points and spend them however you want for an entire year. Some other places do this but usually require you to travel within a specified week, every year.
ROFR is the privilege that the DVC has that allows them to buy any type of resale contract, such as a property from an owner that’s in their park, after the cost and negotiations have been agreed on. Every contract needs to be forwarded to the DVC for review.
How Long Does Disney Have For DVC ROFR?
So, how long does it take for Disney to make up their minds on whether they want to take the property or not? Is there a time limit at all or an expiration date involved?
Disney can take up to 30 days to exercise their right of first refusal, but sometimes it can take longer as Disney is a very big company with a lot of different clients they gave to maintain and uphold. Some people have reported up to 60-80 days worth of wait time before Disney had actually gotten back to them.
Once the limit day has passed, Disney is required to contact the property owner and give them their verdict. If Disney is not interested in the property, you are allowed to continue the process with the initial buyer who was interested.
If Disney is interested, then they will purchase the property from you, and you have nothing else left to worry about. It's up to them what they do with the property afterward, either selling it to the buyer who was first interested, to other buyers or to keep the property.
Of course, just like any contract, there is often an expiration date that follows contracts, but it all depends on Disney and their interest in the property. Generally, these contracts last up to 50 years or more, but are usually the same for every owner, even with a different part of the resort.
Are There Benefits To DVC ROFR?
There are a lot of reasons as to why DVC ROFR can be a benefit for a property owner. Not only is there a higher guarantee that someone is going to be interested in your property, but Disney will most likely have its eyes open as well, so you can sell for a higher price.
Generally, DVC ROFR is more inclined to be beneficial to the property owners, because they’re more guaranteed to have their property sold, and the price paid from Disney is often large, unaffecting themselves or the other buyer that was interested.
Disney on the other hand often takes the short stick here because, while they’re not required to purchase back the property, they are required to get back to and respond to the seller and their proposal preferably within 30 days.
Long story short, if you are a property owner wanting to sell a property you own at Disney, then it's pretty much guaranteed that you get all the good bits of selling, with more people who’ll be interested.
Final Thoughts
As we now know, every property contract in Disney has a DVC ROFR clause in them, where Disney can purchase back their property before you sell it off to another potential buyer and the price has been agreed upon.
Luckily for you, a lot of places online help you through processes such as these, especially if you’re a buyer wanting to purchase a property in Disney. DVC ROFR agents and websites online, like DVC Resale Experts, are constantly striving to ensure you understand the process and get you through the listed choosing stages of properties.
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