Purchasing Disney Vacation Club (DVC) points can be an exciting venture, particularly if you’re acquiring a resale contract through a reputable company like Buy and Sell DVC, Inc.®. However, one key aspect potential buyers need to understand is Disney’s Right of First Refusal (ROFR) and how it impacts your deposit during the buying process. In this blog, we’ll break down ROFR, what happens to your deposit if Disney exercises this right, and how you can navigate this important part of your DVC purchase.
What is Right of First Refusal (ROFR)?
Disney’s Right of First Refusal is a provision that allows Disney to purchase a DVC contract on the same terms as a third-party buyer. Essentially, when a resale agreement has been reached between the DVC owner and a buyer, Disney has the option to buy it back.
The ROFR Process
When you make an offer on a DVC contract through Buy and Sell DVC, Inc.®, several steps follow:
- Offer Submission: Once your offer is accepted by the seller, all parties have signed the agreement and the deposit is made, it is submitted to Disney for review.
- Disney’s Review: Disney will evaluate the contract and the terms of the sale. They typically take around 22 to 26 days to decide whether to exercise their ROFR.
- Disney’s Decision:
- If Disney Exercises ROFR: They choose to purchase the contract themselves, essentially voiding your purchase.
- If Disney Declines: The sale proceeds as planned, and you move forward with the purchase.
What Happens to Your Deposit?
Now, let’s focus on what happens to your deposit during this process:
- Deposit Collection: When you make an offer on a resale contract, a deposit—usually between $1,000 and $7,500—is typically required. This deposit is held in escrow while the ROFR process unfolds.
- If Disney Exercises ROFR: If Disney decides to exercise its right, your deposit will be promptly returned to you. This is a significant reassurance for buyers, as it minimizes financial risk. You will not lose any money if Disney decides to purchase the contract instead of you.
- If Disney Declines: If Disney chooses not to exercise its ROFR, your deposit remains in escrow until the sale closes. At that point, it will be applied toward your purchase price.
Benefits of Buying Through Buy and Sell DVC, Inc.®
Purchasing DVC points through a reputable reseller like Buy and Sell DVC, Inc.® offers several advantages:
- Expert Guidance: The team at Buy and Sell DVC, Inc.® is knowledgeable about the ROFR process and can guide you through every step, ensuring you understand what to expect.
- Transparency: They provide clear communication regarding your deposit, the timeline for ROFR, and any other details related to your purchase.
- Market Insights: Their expertise in the DVC resale market means they can help you find contracts that meet your needs while also providing insight into the market value of various DVC properties.
Tips for a Smooth Purchase Experience
To ensure a successful and stress-free purchase, consider the following tips:
- Stay Informed: Familiarize yourself with the ROFR process and stay in communication with your Buy and Sell DVC, Inc.® representative. They will keep you updated on the status of your offer and Disney’s decision.
- Be Patient: The ROFR process can take up to 30 days, so patience is key. While waiting, you can start planning how you will use your DVC points once the purchase is complete.
- Consider Your Options: If you’re set on a particular contract, it may be wise to explore backup options. If Disney exercises ROFR, you’ll want to have other properties in mind.
Conclusion
Understanding Disney’s Right of First Refusal and its impact on your deposit is crucial when buying DVC points through Buy and Sell DVC, Inc.®. The process is designed to protect both buyers and Disney, providing reassurance that your deposit will be returned if Disney chooses to exercise its ROFR. By working with experienced professionals and staying informed, you can navigate this process smoothly and look forward to countless magical vacations as a DVC member. Happy buying!
