ROFR laws?

Katie L

Mouseketeer
Joined
Jun 2, 2017
I know financially Disney could buy all the ROFR points bacK. Are there timeshare laws/restrictions about how many resale points they can own at one time? Could Disney buy all the points they want through ROFR?
 
I know financially Disney could buy all the ROFR points bacK. Are there timeshare laws/restrictions about how many resale points they can own at one time? Could Disney buy all the points they want through ROFR?

It is the right I first refusal on any and all contracts sold. Technically it would apply to any change of ownership although they have passed on all gratuitous transfers. They could buy all options should they wish.
 
It is the right I first refusal on any and all contracts sold. Technically it would apply to any change of ownership although they have passed on all gratuitous transfers. They could buy all options should they wish.

That doesn't bother me at all. What bothers me is that DVD may not have to pay AD on any contract/point it ROFR. From what I have read in other threads here, DVD will only need to pay AD if there is a shortfall, which usually doesn't happen as there is typically a good cushion between the actual costs & dues collected. Hence, DVD can ROFR lots of contracts at really good prices and just wait for desperate members wanting to buy direct at these sold out resorts.

LAX
 


That doesn't bother me at all. What bothers me is that DVD may not have to pay AD on any contract/point it ROFR. From what I have read in other threads here, DVD will only need to pay AD if there is a shortfall, which usually doesn't happen as there is typically a good cushion between the actual costs & dues collected. Hence, DVD can ROFR lots of contracts at really good prices and just wait for desperate members wanting to buy direct at these sold out resorts.

LAX
Well considering the dues are audited by the state and independent CPAs, if they are consistently padding the dues to avoid any payment on their part they then I would suppose they be caught eventually. Also they still have to pay their share of the property taxes. In the case of DVC grabbing a bunch through ROFR would mean they are padding by a lot of what you suggest is true and they would have had an idea on the amount they planned on buying back when setting the budgets.

While DVC has done questionable things, if this is happening is quite likely a major line that would lead to legal prosecution and likely something they would want to avoid.
 


Well considering the dues are audited by the state and independent CPAs, if they are consistently padding the dues to avoid any payment on their part they then I would suppose they be caught eventually. Also they still have to pay their share of the property taxes. In the case of DVC grabbing a bunch through ROFR would mean they are padding by a lot of what you suggest is true and they would have had an idea on the amount they planned on buying back when setting the budgets.

While DVC has done questionable things, if this is happening is quite likely a major line that would lead to legal prosecution and likely something they would want to avoid.

I am not making any accusations, but commenting on what I have read here. I certainly don't have any faith in DVD/DD doing the right things given what has transpired over the last few months. It would be interesting to see how much DVD has paid in AD for its share of ownership in each resort. Of course, that's proprietary info.

LAX
 
I am not making any accusations, but commenting on what I have read here. I certainly don't have any faith in DVD/DD doing the right things given what has transpired over the last few months. It would be interesting to see how much DVD has paid in AD for its share of ownership in each resort. Of course, that's proprietary info.

LAX
I would guess that you are free to see that information in person and it isn’t proprietary as you have a legal right (of course only for the associations you own). As for the comment on occupancy data I believe they are referring to the analysis is likely proprietary (since it relies on an algorithm that is protected) but the raw data should be available but again probably in person and at your cost and only for the resorts you own, I would guess
 
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Annual dues/maintenance fees.

LAX
Annual dues are paid by the holder of the points. The current members only pay for dues on their share of the total resort.
 
Annual dues are paid by the holder of the points. The current members only pay for dues on their share of the total resort.
What is being referred here is the Guarantee offered on your annual dues. Basically the developer of a timeshare in Florida can offer a guarantee that you as an owner will not be liable for any shortages in the annual dues covering the operating costs. In exchange for this guarantee the developer is exempt from paying their annual dues on unsold interest and only has to pay the difference between the actual costs and those collected on the sold portions.

It can be a positive and a negative. On the positive it prevents the developer from doing things within the budget year that would balloon the budget because they would have to cover those items, solely at their cost. It’s a negative because some people may find mistrust with the developer and fear they may pad the budget. The latter part could happen but not consistently because the state does audit the budget vs actual costs and consistent padding would be found. As for the former part that is important when are dues are mostly paying different divisions within Disney so it in a way keeps them in check. A double edged sword but I suspect a well balanced treatment all around because of this.
 
DVD/DVC will do what's best and most profitable for Disney. Does that included designing a system that gives them complete control of everything, yes it does. Is that illegal, no it isn't. Can they make mistakes and/or cross the gray line, yes they could. In the case of Aulani something happened, what's notable is that they fired three Disney executives over the incident.

:earsboy: Bill

 
DVD/DVC will do what's best and most profitable for Disney. Does that included designing a system that gives them complete control of everything, yes it does. Is that illegal, no it isn't. Can they make mistakes and/or cross the gray line, yes they could. In the case of Aulani something happened, what's notable is that they fired three Disney executives over the incident.

:earsboy: Bill

That's kind of my point. I am not sure how the "fiasco" at AUL unfolded, but I doubt DVD voluntarily fessed up to the mistake.

LAX
 
That's kind of my point. I am not sure how the "fiasco" at AUL unfolded, but I doubt DVD voluntarily fessed up to the mistake.

LAX

Rumor has it that the State of Hawaii determined that they set the dues rate too low and they halted sales.

:earsboy: Bill

 
What is being referred here is the Guarantee offered on your annual dues. Basically the developer of a timeshare in Florida can offer a guarantee that you as an owner will not be liable for any shortages in the annual dues covering the operating costs. In exchange for this guarantee the developer is exempt from paying their annual dues on unsold interest and only has to pay the difference between the actual costs and those collected on the sold portions.

It can be a positive and a negative. On the positive it prevents the developer from doing things within the budget year that would balloon the budget because they would have to cover those items, solely at their cost. It’s a negative because some people may find mistrust with the developer and fear they may pad the budget. The latter part could happen but not consistently because the state does audit the budget vs actual costs and consistent padding would be found. As for the former part that is important when are dues are mostly paying different divisions within Disney so it in a way keeps them in check. A double edged sword but I suspect a well balanced treatment all around because of this.
OK, thanks for this explanation. I'm not quite sure I understand it all but did have a couple of questions. Has Disney actually offered this guarantee? And how does this affect the OP's original question/concern?
 
OK, thanks for this explanation. I'm not quite sure I understand it all but did have a couple of questions. Has Disney actually offered this guarantee? And how does this affect the OP's original question/concern?
Disney has pretty much always made the guarantee from what I know. And personally I don’t think it affects the OP’s question.
 

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