What is Disney’s Right of First Refusal (ROFR)?
It allows Disney Vacation Club to review the sale terms of an ownership and, if exercised, become the buyer with the same terms and conditions as specified in your contract for sale.
Once an offer is accepted, contracts are sent to the Disney review board for Right or First Refusal, also known as “ROFR.” They will look at the terms of the contract to determine if the seller has accepted a fair market price for the ownership. If it is deemed a fair market offer, then Disney will approve the sale and let the buyer become the new owner. Yay! If Disney determines that the offer was under their target value, they will step in as buyer at the same terms. They may also step in and purchase a contract, regardless of price, simply if they need more inventory to sell direct to on-site guests.
As a buyer, you may not like this now but you will when it is time for you to sell your DVC. The purpose of Disney’s ROFR is to control the value of their property so that it remains in step with current market. The criteria Disney uses for ROFR is not public information but there are some important features they look at. One factor for exercising the ROFR would be if Disney feels the selling price is below the target price they have established. This includes: per point price, who is paying closing costs and the current year’s annual dues.
Sound scary? Don’t worry! With decades of DVC resale experience, we council all buyers and sellers on current market conditions. We’ll be here to walk you through the process and make it easy! For more information about current ROFR trends, check out our monthly DVC ROFR and Resale Data Reports.