ROFR question

[w1kk3d]

If WDW exercises ROFR, can the seller back out and re-list at a higher price per point? How does the buyer know that WDW indeed exercised ROFR?

 

[RKS03]

I've wondered the same thing. It seems odd that the seller can back out of the sale with a buyer without penalty since they don't put any cash down and it's unlikely anyone would sue. I wonder if Disney on the other hand would compel them to sell since they hold the property.

 

[fearthisinc]

Seller is in fact forced to sell to Disney if ROFR is exercised.. There is no renegotiating or backing out.. If it reaches ROFR then you agree to accept a certain price for your contract.

 

[Fangorn]

ROFR means "Right Of First Refusal". By offering your points for sale and accepting an offer from a potential buyer, you activate a process that gives Disney the right (stipulated in the master DVC contract) to match that offer and purchase the contract at the agreed on price. At that point, seller does not have the right to back out.

Steve

 

[RKS03]

Seller is in fact forced to sell to Disney if ROFR is exercised.. There is no renegotiating or backing out.. If it reaches ROFR then you agree to accept a certain price for your contract.

Interesting. If Disney has this ability to do this it seems they could help enforce the sale if they waived. I suppose they really don't care to help resale purchasers.

 

[momto3pirates]

From the sellers point of view, they accepted the price and it sold at that price. It doesn't matter that it went back. The seller still gets paid what they were expecting.

 

[fearthisinc]

Interesting. If Disney has this ability to do this it seems they could help enforce the sale if they waived. I suppose they really don't care to help resale purchasers.

Disney would not have any legal authority to "force" a buyer or seller to follow through with the contract once they waive. The only legal edge that Disney has during the resale process is the ability to step in as a buyer to complete a transaction. Once they waive their "ROFR" the completion of the sale is up to the buyer and seller. If one backs out after that point it would become a civil issue between the two parties.. I know when I first started my resale purchase I signed a contract.. This initial signing was not notarized or anything like that, but still a contract stating that I was purchasing. So if a buyer backs out at the end (or a seller) I could see a civil suit being filed, although, not sure how far that would go...

 

[Dean]

Disney would not have any legal authority to "force" a buyer or seller to follow through with the contract once they waive. The only legal edge that Disney has during the resale process is the ability to step in as a buyer to complete a transaction. Once they waive their "ROFR" the completion of the sale is up to the buyer and seller. If one backs out after that point it would become a civil issue between the two parties.. I know when I first started my resale purchase I signed a contract.. This initial signing was not notarized or anything like that, but still a contract stating that I was purchasing. So if a buyer backs out at the end (or a seller) I could see a civil suit being filed, although, not sure how far that would go...

They have the same legal authority to force the sale as would the buyer. The main difference is they have the legal means to actually do so. But I doubt they would. Historically they have allowed the buyer/seller to change the contract and resubmit. I haven't heard of that happening in some time though. Might be a good question for the bigger companies to ask their experience of late.

 

[chalee94]

Interesting. If Disney has this ability to do this it seems they could help enforce the sale if they waived. I suppose they really don't care to help resale purchasers.

Where would you get the crazy notion that they want to help resale purchasers?

ROFR allows Disney to annoy would-be purchasers enough to drive them to buy direct, as well as letting them take advantage of low ball offers to sell later at a profit.

Disney only makes money on direct purchasers - any benefit of ROFR to buyers or sellers is purely incidental.