ROFR Thread April to June 2024 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

DonMacGregor said:
They'd have to set up the title escrow account if only to receive the deposit. They would have received the funds before ROFR and would have to process the transfer of the deposit back to the original buyer once Disney took the contract.

Collecting and placing third-party funds into an escrow account is a highly regulated process. I'm guessing there is a very formal process that must be followed and that the file must be fully set up before they can accept even $1.00 in funds.
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I can see setting up the escrow account but I don’t see why they would start the title work until they knew they were writing a title policy
 
tom1944 said:
I can see setting up the escrow account but I don’t see why they would start the title work until they knew they were writing a title policy
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Work done is work done and they handle the deposit and escrow accounts as well as actual title work. I'm not understanding the focus on it being title work as making a difference?
 
KAT4DISNEY said:
Work done is work done and they handle the deposit and escrow accounts as well as actual title work. I'm not understanding the focus on it being title work as making a difference?
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Because people are wondering if they get paid and if not are they stiffed for actual work done before the ROFR process.
 


tom1944 said:
I can see setting up the escrow account but I don’t see why they would start the title work until they knew they were writing a title policy
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I never said they started the title aspect of their retention. What I said was that if they are setting up an account to receive and hold funds in escrow for a buyer, they can't just say "Hey Don, just send us the money and we'll hang on to it for you". It's an extremely regulated industry and at the very least, they would need to request the buyer's legal information (name, address, DOB, etc.), set up the file in their office, collect the funds, and if the contract is taken in ROPFR, refund those funds back to the original buyer. Just setting up the file and the deposit process (including the refund which most process as a check mailed back to the original buyer) entails some amount of statutorily required paperwork and time, and for that they would be entitled to compensation.

Even if they don't do anything related to the title aspect of the transaction (title search, issuance of a title policy), they still have to set up the file in their office and do some amount of work related to collecting, maintaining, and refunding the deposit.
 
tom1944 said:
I bet there is someone from one of the title companies who read the board.

It’s always nice to hear from the professionals.

Do you do title work before ROFR?
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My guess is that there might be a couple companies that tried to get jump on it due to ROFR being nonexistent for months at PVB.
 
As a practical matter, though: Seller isn't going to pay them anything if Buyer has agreed to pick up closing costs, which is the norm. Buyer isn't going to pay them anything because it's not getting the contract. Disney isn't going to pay anything because it doesn't have to. Probably gets absorbed as just a cost of doing business, but would be interesting to hear from a title person.

Edit: Title company also gets the float on the deposit, so it's not nothing, but if everyone puts it on a credit card that doesn't mean much.
 
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chazas said:
Buyer isn't going to pay them anything because it's not getting the contract.
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Why would Disney not have to? Disney is stepping in as the buyer, assuming all terms of the original sale:
You have the right to sell your Ownership Interest, if you choose. However, DVD has a right of first refusal to repurchase your Ownership Interest on the same terms and conditions, including financing that your buyer has offered.
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DonMacGregor said:
Why would Disney not have to? Disney is stepping in as the buyer, assuming all terms of the original sale:
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Hmm. If I were DIsney I'd argue that "buyer pays closing costs" doesn't mean anything if they do all the work themselves. They're not assuming the contract, they're exercising a right to buy from the seller on the agreed terms with the seller. I could see the counterargument but my suspicion (completely unfounded) is that a title company who does a lot of these wouldn't want to rock the boat.
 
chazas said:
Because people are wondering if they get paid and if not are they stiffed for actual work done before the ROFR process.
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Yes but the part that seems to be misunderstood is that it IS the title company that starts work on the process immediately. It may not be doing any actual work on the title but they open the escrow. So if they are not paid they have essentially been stiffed.

Regarding the title company, the buyer pays. During ROFR the agreement is that DVC takes over in place of the buyer under all the same terms as if the sale continued. Buyer pays = DVC paying. At least something would seem fair to cover the initial escrow account work.
 
chazas said:
As a practical matter, though: Seller isn't going to pay them anything if Buyer has agreed to pick up closing costs, which is the norm. Buyer isn't going to pay them anything because it's not getting the contract. Disney isn't going to pay anything because it doesn't have to. Probably gets absorbed as just a cost of doing business, but would be interesting to hear from a title person.

Edit: Title company also gets the float on the deposit, so it's not nothing, but if everyone puts it on a credit card that doesn't mean much.
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I equate it to being a travel agent. I can do the work of getting quotes, etc and even get clients booked. But I don’t get paid commission until they travel. If they cancel before, I get nothing.

So, maybe those that handle the contracts like this, given the vast majority of contracts that pass, they simply don’t worry about what they should be paid for setting up escrow and sending to ROFR.

Maybe that is why some title companies doesn’t start the paperwork before RoFR?
 
Just a general note about "what they sold for" comments and websites. I have found huge errors on aggregator sites (stopped updating for some sites a year ago and still show sold listings as active months later - plus some Very active brokers pull their pending sales, so you'll Only see their still Active listings on the aggregator sites - so that throws numbers off in a casual review), and the sites like www.dvcresalemarket.com which show sold prices in a given month can also be far off - they only list Their sales, and their sales are strongly influenced by the Seller tools they provide (which are guestimates). They are very high on some, very low on others, and I know Sellers who list elsewhere when their numbers are off (I have done that when they showed one of mine recently $12 below what it sold for within a couple hours, multiple offers). That error can work in both directions.

If you want to know what contracts/points are selling for, you need to watch for yourself, and see how fast they turn over. The only True $ numbers are the recorded Deeds - BUT - those give a false number too since there is a time lag between offers and deed recordings (can easily be over a month with international sellers), and they don't show if the contract was stripped or loaded, which is a major difference in value. And some Use Years sell higher/faster in a given month due to scarcity, which is often just the luck of the moment.

Hope that helps someone.
 
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Sandisw said:
I equate it to being a travel agent. I can do the work of getting quotes, etc. and even get clients booked. But I don’t get paid commission until they travel. If they cancel before, I get nothing.
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Except as soon as you pay a down payment/deposit that a title company is legally required to set up an escrow account for, they HAVE done something. They had to set up the account, collect your money from their bank and transfer it into the escrow account, then when Disney exercise ROFR, they had to withdraw the funds and disperse them back to the original buyer, often times in the form of a paper check.

As for the title companies just chalking it up to the cost of doing business and to avoid rocking the boat, I can definitely see that as a possibility with a small company, but an outfit like First American isn't going to be thinking twice about losing any money to Disney because A. they likely do millions of transactions per year, and B. Disney isn't retaining them, the original buyer is, so there's zero chance of them losing Disney's business. B would apply to any title company, large or small. I suppose Disney could be petty and lean on the brokers to blacklist a title company,
 
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