What is ROFR, and why is it a good thing?
ROFR stands for Right of First Refusal. Disney has the right to review every contract that is sold on the resale market. After a buyer and seller agree to the terms of a contract, and both parties sign the necessary paperwork. The terms of contract are then reviewed by the regulatory authority. Disney has 30 days to look at the agreement and decide if they want to buy it back, themselves, at the agreed upon price.
Buyers may occasionally see this period of time as a painful delay. They’re excited about the opportunity to become Members of the Disney Vacation Club, and naturally want to close as quickly as possible so that they can begin planning their next vacation! However, this wait might not be for be for longer duration and they can start planning for new vacation soon.
Sellers, however, see this process a bit differently as they always want to have a neutral relations. First, they have a buyer….yay! They may not like the delay in closing, but the seller receives a check for the same amount, whether that buyer is a family from Moline, Illinois, or DVC. In this manner they don’t bear too much risk.
ROFR has been seen as a major success from past few years. The best part of Disney’s right of first refusal for ALL Disney Vacation Club members is that it keeps the value of their membership high. Which works in favor of both the sellers and the buyers. Traditional “timeshare” sells for pennies on the dollar on the resale market. But for those who have enjoyed many years of great vacations with DVC then decide to sell, they often are surprised at the value of their points……and it’s a good surprise!