ROFR Thread Oct to Dec 2020 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[we"reofftoneverland]

The reality is that almost every other business in the US has figured out how to make things work during this current crisis. The simple answer is that DVC purposely is dragging this out, it should take no more than 5 minutes to figure out if they want to ROFR a resale contract using a simple spread sheet and list of points that people want to buy direct now, since they can change UY's on existing contracts.

Exactly. Dh has dealt with 3 ROFR situations with office buildings in the last year and the response was basically immediate. He thinks Disney is very out of line here and is definitely doing it on purpose in yet another attempt to cripple the resale market. I really wonder if it is legal but they just do whatever they want with everything anyway. Nasty, Disney, very nasty.

 

[we"reofftoneverland]

The reality is that we're all getting a great deal buying resale, and we all have the option to buy direct if we don't like the inconvenience. Said inconvenience is not going away anytime soon, so it seems to me that indignance is misplaced. Why rail on when nothing is going to change?? Considering that the ease of buying direct is one of the few advantages Disney can offer right now in a direct sale, it doesn't seem to me that they have any motivation to make the process smoother. Or quicker.

That said, I bought some contracts last April, and ROFR took less than two weeks, so I don't think the delay is premeditated. And there are plenty of businesses out there suffering as a result of the ongoing crisis.

I don’t think the Indianan (edit indignant) is misplaced at all. If people own something and want to sell it, they should be able to do that. If Disney wants to take, take it, but torturing sellers isn’t cool. Never mind buyers. Pretty much everything Disney does is on purpose. They are a very sophisticated, well run company.

 

[MortimerMouse]

MortimerMouse---$99-$16830-170-BRV@WL-Aug-0/19, 0/20, 0/21, 170/22-Seller pay 20/21 due- sent 9/24

 

[Paul Stupin]

I don’t think the Indianan (edit indignant) is misplaced at all. If people own something and want to sell it, they should be able to do that. If Disney wants to take, take it, but torturing sellers isn’t cool. Never mind buyers. Pretty much everything Disney does is on purpose. They are a very sophisticated, well run company.

Disney is currently in the position of having to lay off 28,000 employees. These are not easy times and I'm inclined to give them a break.

 

[Sandisw]

Disney is currently in the position of having to lay off 28,000 employees. These are not easy times and I'm inclined to give them a break.

To be fair, the title companies and brokers are already doing that in setting closing between 60 and 90 days.

Yes, expecting it at 31 days if they have not responded could be seen as unreasonable in this timeframe,

But, after 60 days? Yes, the company is struggling but so might the seller and needs the sale to close as soon as possible,

You are right that the title company calls the shots, so not much a buyer can do other than back out and move on.

 

[poofyo101]

The reality is that almost every other business in the US has figured out how to make things work during this current crisis. The simple answer is that DVC purposely is dragging this out, it should take no more than 5 minutes to figure out if they want to ROFR a resale contract using a simple spread sheet and list of points that people want to buy direct now, since they can change UY's on existing contracts.

I have said this for the last few weeks. They are doing it on purpose. You could at least pass the Aulani, Riv, Poly, CCV and get through half of them quickly just like that.

 

[E2ME2]

To be fair, the title companies and brokers are already doing that in setting closing between 60 and 90 days.

Yes, expecting it at 31 days if they have not responded could be seen as unreasonable in this timeframe,

But, after 60 days? Yes, the company is struggling but so might the seller and needs the sale to close as soon as possible,

You are right that the title company calls the shots, so not much a buyer can do other than back out and move on.

The one I have in ROFR had 110 Days on the contract closing. Iasked if that was in error, and was told that it was to allow for COVID-Delays, based on their recent experiences.

 

[Sandisw]

The one I have in ROFR had 110 Days on the contract closing. Iasked if that was in error, and was told that it was to allow for COVID-Delays, based on their recent experiences.

Which I think is at more than fair for DVD and for buyer/seller as they know upfront. I was told when I closed in July from my broker that they were doing 90 days at that point for the same reason.

 

[poofyo101]

and now all of a sudden they are no longer doing them in order and skiping around the last few posts of passed/taken. They have since I have been buying DVC always gone in date order unless something is wrong with the paperwork.

 

[Ssplashhmtn]

I don't think the delay is premeditated. And there are plenty of businesses out there suffering as a result of the ongoing crisis.

Disney’s market value today is $228 Billion. And the company value is *up* over the last 18 months - higher than mid April 2019. Revenue isn’t what they want, but apparently the business isn’t suffering.

So I don’t agree with you that it is okay for the rofr process to take longer than the guidelines Disney created, causing sellers and buyers potential financial setback. Their motivation should be their own commitments/guidelines, and underlying respect for their extremely loyal customer base.

 

[Brianstl]

There is nothing unfair about expecting Disney and title companies to do what they are supposed to in the time frame they are legally supposed to. Disney wrote the ROFR language in their contracts and are well aware they waive ROFR at the closing date. Title companies are being paid to at least start the closing process on the closing date knowing ROFR has legally been waived.

 

[lolcatparty]

The one I have in ROFR had 110 Days on the contract closing. Iasked if that was in error, and was told that it was to allow for COVID-Delays, based on their recent experiences.

Mine is 110 days in ROFR as well. Same response when i questioned why so long.

 

[Carrie932]

Mine is 110 days in ROFR as well. Same response when i questioned why so long.

Yes same 110 listed for us too wasn't the case for our last contract from over this summer...

 

[John Purcell]

Where do you follow Jerry? I like him as well. Seems no nonsense.

He is on DVC Fan and Pete’s Monday show..

 

[Paul Stupin]

Disney’s market value today is $228 Billion. And the company value is *up* over the last 18 months - higher than mid April 2019. Revenue isn’t what they want, but apparently the business isn’t suffering.

So I don’t agree with you that it is okay for the rofr process to take longer than the guidelines Disney created, causing sellers and buyers potential financial setback. Their motivation should be their own commitments/guidelines, and underlying respect for their extremely loyal customer base.

I understand your point, but none of us really know what the reason for the delay is. Personally, to me its pretty clear that its Covid related and not some Machiavellian scheme to kill the resale market. But that's just one uninformed opinion. The evidence seems to suggest that there have been cutbacks at DVC slowing down the whole resale process, and frustrating all of us DVC members. But we don't know how many DVC employees are responsible for ROFR. Is it one guy with a laptop at home, whose schedule allots one or two days a week for this? Have layoffs significantly diminished the number of team members responsible for ROFR?

The problem is, we just don't know, so the best anyone can do is just guess. One thought. So many of the resale brokers are former DVC employees. Maybe they know. Has anyone's broker shed any light on the situation?

 

[John Purcell]

Disney’s market value today is $228 Billion. And the company value is *up* over the last 18 months - higher than mid April 2019. Revenue isn’t what they want, but apparently the business isn’t suffering.

So I don’t agree with you that it is okay for the rofr process to take longer than the guidelines Disney created, causing sellers and buyers potential financial setback. Their motivation should be their own commitments/guidelines, and underlying respect for their extremely loyal customer base.

Great post!!! DIS is a publicly traded company and their Directors want customers to be happy because it’s generally good for shareholders’ value. However with ROFR, their interests, your interests and the seller’s interests are at complete odds.

Make no mistake: DVC (and parent co) would want ROFR to take 6+ months to have an unlimited inventory in the event someone calls DVC sales to buy a sold out resort. So, there is a tight rope they have to walk with our avid and loyal base vs. bottom line / sales...

UGH, AND HERE COMES my wacky conspiracy theory : I am in the minority who thinks it’s too convenient to assume the long ROFR is COVID related. I mean if it were truly a $/point value proposition, I could have an algorithm within 2-3 hours (and a 250 billion company can probably do it sooner!!). It’s about having a HUGE inventory of contracts at disposal if a buyer calls DVC for a sold out resort (Would they tell them they are wait listed when they can go to a big broker to get exactly what they want, except cheaper?).

before judgement- I pledged generously towards Cast Member Pantry last month, so I care for the people, but not for the pennies per share a 60+ vs 15 day ROFR involves.

 

[Sandisw]

Great post!!! DIS is a publicly traded company and their Directors want customers to be happy because it’s generally good for shareholders’ value. However with ROFR, their interests, your interests and the seller’s interests are at complete odds.

Make no mistake: DVC (and parent co) would want ROFR to take 6+ months to have an unlimited inventory in the event someone calls DVC sales to buy a sold out resort. So, there is a tight rope they have to walk with our avid and loyal base vs. bottom line / sales...

UGH, AND HERE COMES my wacky conspiracy theory : I am in the minority who thinks it’s too convenient to assume the long ROFR is COVID related. I mean if it were truly a $/point value proposition, I could have an algorithm within 2-3 hours (and a 250 billion company can probably do it sooner!!). It’s about having a HUGE inventory of contracts at disposal if a buyer calls DVC for a sold out resort (Would they tell them they are wait listed when they can go to a big broker to get exactly what they want, except cheaper?).

before judgement- I pledged generously towards Cast Member Pantry last month, so I care for the people, but not for the pennies per share a 60+ vs 15 day ROFR involves.

What I can tell you is that many areas of the company went to bare bones staff for divisions not doing what the normally do,

At DVD, it was reported a while ago that they had only 2 people working on this and of course, with all the resale contract, taking 45 days to 50 days in the spring....mine took 46 I think...is understandable.

Brokers and title companies adjusted their practices to account for it as well.

In the end, though, DVD should be expected to keep up their end of the deal especially when they have already been given an extra month in most cases than pre Covid,

 

[John Purcell]

What I can tell you is that many areas of the company went to bare bones staff for divisions not doing what the normally do,

At DVD, it was reported a while ago that they had only 2 people working on this and of course, with all the resale contract, taking 45 days to 50 days in the spring....mine took 46 I think...is understandable.

Brokers and title companies adjusted their practices to account for it as well.

In the end, though, DVD should be expected to keep up their end of the deal especially when they have already been given an extra month in most cases than pre Covid,

I agree but the folks who waive are let-go first for a reason, only because it serves “The Purpose” (profit). It seemed awfully soon / convenient too. I mean DVC resale gets fees for this, their resale volume in 2020 is unsurpassed, so why cut to 2 people? It just SOUNDS convenient, and I am a skeptic, so may I am overthinking this? Also I just put an offer in on SSR, so maybe I am not too skeptical.

 

[gisele2]

The one I have in ROFR had 110 Days on the contract closing. Iasked if that was in error, and was told that it was to allow for COVID-Delays, based on their recent experiences.

Mine too.

 

[Sandisw]

I agree but the folks who waive are let-go first for a reason, only because it serves “The Purpose” (profit). It seemed awfully soon / convenient too. I mean DVC resale gets fees for this, their resale volume in 2020 is unsurpassed, so why cut to 2 people? It just SOUNDS convenient, and I am a skeptic, so may I am overthinking this? Also I just put an offer in on SSR, so maybe I am not too skeptical.

Actually, that is not how it happened in many divisions of the company. As I have shared, my child is on furlough from one of them.