How Long Does ROFR Take? A Comprehensive Guide for DVC Buyers and Sellers

Understanding the Right of First Refusal (ROFR) process is crucial for Disney Vacation Club (DVC) buyers and sellers. This guide will provide you with a detailed overview of how long the ROFR process typically takes, what factors influence the timeline, and what you can do to navigate it effectively. With our extensive experience in the DVC resale market, we aim to equip you with the knowledge you need to make informed decisions.

What Is ROFR and Why Does It Matter?

The Right of First Refusal (ROFR) is a provision that allows Disney to review and potentially purchase a DVC property before a sale is finalized. Understanding how ROFR works is essential for both buyers and sellers, as it directly impacts the timing and outcome of a resale transaction.

In DVC transactions, the ROFR process is a critical step that can influence the overall timeline of your sale or purchase. The provision is designed to protect Disney’s interests in maintaining control over its membership and ensuring that properties are sold to individuals who will adhere to the club's standards.

Understanding the ROFR Timeline

Typically, the ROFR process can take anywhere from a few weeks to several months. Here’s a breakdown of the stages involved:

1. Submission of the Purchase Agreement: Once the buyer and seller agree on a sale, the purchase agreement is submitted to Disney for review.
2. Disney’s Review Period: Disney has a set period, usually 30 days, to decide whether to exercise its right of first refusal.
3. Notification: After the review period, Disney will notify the seller and the buyer of its decision.
4. Finalizing the Sale: If Disney waives its ROFR, the sale proceeds. If it exercises the ROFR, Disney will purchase the property at the agreed-upon price.

Factors Influencing ROFR Processing Time

While the general timeline for ROFR is outlined above, several factors can influence the length of the process:

• Volume of Transactions: During peak seasons, Disney may experience a higher volume of transactions, which can lead to longer processing times.
• Completeness of Documentation: Incomplete or inaccurate paperwork can delay the review process. Ensure all documents are correctly filled out to avoid unnecessary delays.
• Property Location and Value: High-value properties or those in high-demand areas may attract more scrutiny from Disney, potentially extending the review period.

Practical Examples of ROFR Timelines

To illustrate the varying timelines of the ROFR process, consider the following examples:

Example 1: A buyer submits a purchase agreement for a DVC property in January. Disney completes its review within the standard 30-day window, allowing the sale to proceed smoothly without any delays.

Example 2: A seller lists a property during the busy summer months. Due to the increased volume of transactions, Disney takes 45 days to review the purchase agreement, causing a delay in the closing process.

Tips for Navigating the ROFR Process

To help you navigate the ROFR process efficiently, consider the following expert tips:

• Work with a Trusted Resale Agent: Partnering with an experienced DVC resale agent can provide valuable insights into the ROFR process and help streamline your transaction.
• Be Proactive: Maintain open communication with your agent and be prepared to provide any additional documentation that may be requested by Disney.
• Understand the Market: Stay informed about market trends and property values to set realistic expectations about your sale or purchase.

Conclusion: Preparing for the ROFR Process

Understanding how long the ROFR process takes and the factors that influence it is essential for both DVC buyers and sellers. By following best practices and leveraging expert knowledge, you can navigate this complex process with confidence. Remember, the key is to stay informed and proactive throughout the transaction.

If you're ready to embark on your DVC journey or have questions about the ROFR process, don't hesitate to contact us. Our dedicated team of DVC experts is here to provide you with trusted guidance and support every step of the way.

Call to Action: Reach out to us today to learn more about your options in the DVC resale market and ensure a smooth transaction process!