It's always a good thing to keep up to date on the various rules and regulations associated with your timeshare ownership or vacation club membership. The online Wall Street Journal "Timeshare Information" department recently addressed the question "What is Disney Vacation Club's Right of First Refusal?"
The following article, posted by the Wall Street Journal Digital Network, is an easy-to-understand explanation of an important aspect of Disney Vacation Club membership.
Disney Vacation Development, Inc has the first right to purchase any Disney Vacation Club (DVC) real estate interest that is sold on the secondary market. Basically, what this means is that every resale contract must be submitted to Disney for review prior to closing. If DVC feels the purchase price is below market, they have the right to assume the position of the Buyer in the contract and purchase the ownership from the Seller at the contracted price.
When Disney exercises their right of first refusal (ROFR), the original Buyer is released from the contract to purchase. The Seller continues on with the closing as before, only now they are deeding the interest back to Disney. The terms of the sale remain the same, except that a third-party closing agent is no longer used- as Disney handles the new deeding process internally.
The purpose of DVC's Right of First Refusal process is to help control and maintain the value of their timeshare properties. All aspects of a sale are considered by DVD including, but not limited to: sales price, number of vacation points, dues reimbursements, and closing cost distribution. While the ROFR process can be frustrating to a buyer, the end result can be positive for all owners- as consistent decisions for ROFR help to maintain a more consistent resale market for owners. During the recent challenging economic period, Disney has become far less aggressive in assuming contracts. A possible result of this inactivity is the decline in resale prices over the past year.
If you are the buyer, and DVC exercises their right of first refusal and replaces you in the transaction, any funds you have deposited into escrow should be promptly refunded in full. You can then make another offer to purchase a DVC resale.
The largest online marketplace for timeshares. Owners sell, rent, or exchange their timeshares. Travelers find luxury accommodations for pricing less than typical hotel rooms.Visit RedWeek.com
Links for Owners & Travelers
- ► 2014 (96)
- ► 2013 (220)
- ► 2012 (257)
- Timeshare Vacation in Puerto Rico – Part 1
- Island Links Resort Hilton Head Island
- Vacation Ownership in Mexico
- RedWeek.com Top 25 Timeshare Rental Resorts Announ...
- Hyatt Timeshare Resorts Introduce “Toy Box”
- Monarch Grand Vacations for Sale
- Timeshare Resellers Included on BBB List of Top Sc...
- Do you Know the Disney Vacation Club Resale Requir...
- Star Wars, Legoland and a Carlsbad Timeshare Vacat...
- Questions about Timeshare Inheritance
- Orlando Timeshare Scam Shut Down
- RCI Timeshare Exchange Adds ILOA Family Life Resor...
- RedWeek.com Timeshare Marketplace Celebrates Eight...
- 3 Events that Could Inspire Your 2011 Travel Plans...
- Wyndham Vacation Ownership Announces Affiliation S...
- Viva Wyndham Maya Completes Renovation of Kid's Cl...
- New York City Tops U.S. Travel Destinations
- 7 Food Festivals Near Your Florida Timeshare
- Six New England Playgrounds on a Timeshare Budget
- Ritz-Carlton Destination Club Introduces 10th Loca...
- ▼ January (20)
- ► 2010 (256)
Timeshare Resort vs. Hotel
Many travelers are unaware that renting timeshare units are far superior to hotel rooms in comfort and price, especially for families and large groups.
A typical hotel gets you one room with a bed and a bathroom. Most timeshare resorts, however, feature multiple bedrooms and bathrooms, living room, kitchen, dining area, and many have resort activities and amenities not found at hotels.
Learn more about timeshare travel»
Want to add a RedWeek search widget to your website or blog? Head on over to RedWeek.com, and grab a timeshare widget»