What happens if Disney ROFR buys back the membership?

When Disney exercises their Right of First Refusal on your DVC resale transaction, it means Disney has chosen to purchase the contract at the agreed-upon price instead of allowing the sale to proceed to your intended buyer. While this outcome can be disappointing for both buyer and seller, understanding what happens next and why Disney exercises ROFR helps you navigate the situation and plan your next steps.

Understanding Disney Right of First Refusal

Disney Right of First Refusal is a contractual provision included in all DVC ownership documents. When a DVC member sells their contract, Disney has the right to review the transaction and purchase the contract themselves at the same price and terms the buyer offered. This right exists on all DVC resale transactions regardless of the broker or sale method used.

The ROFR review period typically lasts approximately 30 days from submission. During this time, Disney evaluates the transaction based on factors including price, resort, contract size, and their current inventory needs. Disney does not disclose their specific decision criteria, making outcomes difficult to predict with certainty.

Why Disney Exercises ROFR

Disney exercises ROFR selectively based on their business objectives. Common reasons include building inventory to resell through their direct sales channel, maintaining price floors in the resale market, and acquiring contracts at specific resorts where they want additional inventory. Disney tends to exercise ROFR more frequently on lower-priced contracts that offer significant arbitrage opportunity.

ROFR rates vary by resort and over time. Some resorts see higher ROFR activity than others based on Disney sales priorities. Market conditions, new resort openings, and promotional activities can all influence how aggressively Disney exercises their rights during any given period.

What Happens to the Seller

If Disney exercises ROFR on your sale, you still complete the transaction and receive the agreed purchase price. The difference is that Disney becomes the buyer instead of the individual who submitted the offer. The closing process proceeds normally through the title company, and you receive your proceeds minus standard closing costs.

From a financial perspective, the seller outcome is identical whether the buyer is an individual or Disney. You sell your contract at the agreed price either way. The only difference is who ends up owning the membership after closing.

Seller's Perspective on ROFR

While the financial outcome remains the same, sellers might have different emotional responses to Disney exercising ROFR. Some sellers may feel a sense of relief knowing that Disney values their contract, while others might feel disappointed if they had a personal connection with the intended buyer. Understanding that the transaction still concludes successfully can help mitigate any negative feelings.

What Happens to the Buyer

Buyers whose transactions are taken by ROFR do not purchase the contract they originally offered on. Your earnest money deposit is refunded in full, and you are free to pursue other listings. While losing a desired contract is frustrating, you have not lost any money in the process.

Buyers in this situation typically have two options: search for another contract and submit a new offer, or consider whether offering slightly more on similar contracts might help future offers pass ROFR. Understanding recent ROFR patterns at your target resort helps inform pricing strategy on subsequent offers.

Buyer's Strategy Post-ROFR

• Research: Review recent sales data to understand where pricing trends are for the resort you're interested in.
• Adjust Offers: Consider increasing your offer slightly to make it more competitive and less likely to be taken by Disney.
• Consult Experts: Work with a knowledgeable DVC resale broker who can provide insights into ROFR trends and strategies.

ROFR Patterns and Pricing Strategy

The DVC community tracks ROFR outcomes to identify pricing patterns at each resort. While Disney does not publish their criteria, aggregated data shows general price ranges where contracts pass versus get taken. Pricing your offer or listing within ranges that historically pass ROFR improves your chances of completing a transaction.

DVC Sales monitors ROFR trends and can advise both buyers and sellers on current market conditions. We help buyers structure offers that balance value with ROFR probability, and we help sellers price listings appropriately to attract legitimate offers while minimizing ROFR risk.

Trying Again After ROFR

Buyers whose offers were taken by ROFR often succeed on subsequent attempts. Consider whether a slight price increase might help your next offer pass. Look at recently completed transactions at your target resort to understand where the market currently clears. Sometimes patience and persistence lead to successful acquisition.

Sellers whose contracts were purchased by Disney have completed their sales successfully. If you were satisfied with the price, the outcome is positive regardless of who bought your membership. If you hoped for a higher price, you now have information about what Disney was willing to pay at your resort.

Working with DVC Sales

DVC Sales guides clients through all aspects of DVC resale transactions, including ROFR outcomes. We set appropriate expectations before offers are submitted, keep you informed during the ROFR period, and help you navigate next steps if Disney exercises their rights. Our experience with thousands of transactions provides valuable perspective on ROFR patterns and successful strategies.

Contact DVC Sales to discuss your DVC buying or selling goals and learn how we can help you achieve successful outcomes even when ROFR creates challenges.