At its most basic form, Right of first refusal allows Disney the option to purchase your ownership back from you, preventing a sale to the open market. This can be a frustrating feature for those trying to score DVC points for cheap, but can also bolster resale prices for existing Disney timeshare owners.
How Disney Right of First Refusal Works
Owners who are looking to sell their timeshare ownerships must first submit their resale purchase agreement to the developer to review prior being able to transfer the ownership to the secondary market buyer. The developer has 30 days to either allow the transaction or refuse the transaction and buy it back themselves. After 30 days, the developer will choose to either waive their right to act on their right of first refusal, or to purchase the ownership.
Benefits to Disney Timeshare Owners
As an owner, right of first refusal could offer you some peace of mind that your resale value will not fall greatly during the time of ownership. The secondary market could fluctuate throughout the years, and Disney’s right of first refusal program can allow developers to help maintain a consistent market value for their owners.
Challenges to DVC Points Buyers
If the developer acts on their right of first refusal, and the buyer is working with a closing company used by A Timeshare Broker, Inc., the buyer will not lose any earnest money deposits, but can have the option to start over by purchasing another timeshare from another owner. This could be one of the best reasons to work with an experienced resale broker, who can help guide you into making an offer that will not be purchased back by Disney.
Final Thoughts on Disney’s ROFR
In our many years of experience, many buyers really like the peace of mind that the vacation ownership they are buying will have better residual value than clubs that don’t have ROFR. Programs such as first right of refusal can help protect against not only total loss of your initial purchase price, but if the ownership is planned to be willed to your children, your next of kin can enjoy the same benefit.
If you would like more information on DVC, you can visit our frequently asked questions page to see some of the most common questions answered by industry professionals.
Feel free to contact us for more information regarding the specific programs for each developer, and we would be more than happy to have a licensed agent contact you to answer any questions you have.
