Having a DVC ROFR is more common than you think, and understanding what they are before it’s presented to you in the contract is important.
From how long it takes, to whether or not the DVC ROFR expires is something that should be of interest to those who have a contract with Disney.
If DVC ROFRs is something that you’re wanting to know more about, continue reading this article, like DVC Resale Experts, so you’re able to understand this common and legal real estate term.
What is DVC ROFR?
You might have a DVC ROFR on your contract with Disney and be totally unaware of it, and when you’re getting ready to sell they pop out of nowhere with it, getting you in trouble. Knowing what it is before this situation occurs is important, so you know that your understanding ultimately benefits you in the long run.
ROFR & DVC is the concept of Right Of First Refusal, or First Right Of Refusal as it’s more commonly known, by the DVC (Disney Vacation Club) where they have the option to purchase any resale contract after the price has been agreed on prior.
It’s a generally common clause that’s found in contracts, not just from DVC. It basically gives the company the first chance to make an offer for the estate. Each contract however needs to be funneled through to the DVC for review.
If the Disney Vacation Club chooses not to buy the contract and estate back during the ROFR period, the sale will then go through for the original buyer as planned as it is supposed to without a DVC ROFR.
How Long Does DVC ROFR Take?
Once the seller of the DVC contract accepts an offer from a potential buyer, Disney will have an average of 30 days to make the decision on what they want to do with the estate, and whether they want to purchase it or not.
The time of how long you’ll have to wait for Disney to decide on what they want to do with the clause and the contract can vary depending on a number of factors. Disney being a very busy company, and has to consider the financial outcomes, sometimes it could be a longer or shorter wait time.
Disney likes to make sure they take their time with contracts and proposals, and while that can be a bit of a pain for companies that want to quickly close deals and prepare the paperwork accordingly, you aren’t able to do that without the ROFR letter.
Most of the time a lot of ROFR contracts, out of Disney as well, do 60 days or more clause for them to have more time to get back to you about the contract. They can overall take as long as they need or want worst case, as they’re not obligated to stay within the 30-60 days.
Does DVC ROFR Ever Expire?
Something that should be noted about the DVC ROFRs, DVC Resale Experts, is whether they expire or not, as you don’t want to be stuck not knowing when the contract still applies or not.
They do in fact expire after a certain amount of time, or after a specific event occurs as specified in the contract, such as the expiration of a lease. But to what time or the date, the clause isn’t valid anymore varies depending on what is written on the contract.
If you’re unsure as to when the expiration of the clause is, or it isn’t specified in the contract, you should contact the DVC for any inquiries that you may have regarding the ROFR, especially if you don’t understand something.
It should be known however when the DVC gives you an offer, you only have a certain amount of time to decide on whether you’re going to accept or decline the deal.
Final Thoughts
ROFRs, Right Of First Refusals, in contracts are extremely common, especially in DVC, Disney Vacation Club. Depending on your designated contract, the time they get back to you and when they send you an offer can vary.
Leave a Reply