Understanding Disney's Right of First Refusal (ROFR)
Disney's Right of First Refusal (ROFR) is a clause in every DVC contract that gives Disney the option to purchase any resale contract at the agreed-upon price. Understanding ROFR helps buyers navigate the resale process with realistic expectations.
How ROFR Works
When you agree to purchase a DVC resale contract, the transaction is submitted to Disney for review. Disney has approximately 30-45 days to decide whether to exercise their right and purchase the contract themselves, or waive the right and allow the sale to proceed.
If Disney exercises ROFR, the sale is canceled, and the seller must find another buyer. The buyer's deposit is fully refunded. If Disney waives ROFR, the sale moves forward to closing.
Why Disney Uses ROFR
Disney uses ROFR primarily to manage resale pricing and maintain inventory at resorts where they want to sell points directly. By purchasing underpriced contracts, Disney removes bargains from the market and can resell those points at full retail.
ROFR also helps Disney maintain control over membership standards and ensures they have inventory to meet demand at various resorts.
Understanding Disney's Right of First Refusal (ROFR)
Buyer and seller agree on price and terms
Title company sends documents to Disney for review
Disney decides whether to purchase the contract at your agreed price
Sale proceeds to closing. Most common outcome.
Disney buys the contract. Seller receives full price, buyer must find another contract.
ROFR Patterns by Resort
Disney exercises ROFR more frequently on certain resorts. Popular resorts where Disney is actively selling points (like Riviera or Grand Floridian) see higher ROFR rates. Older resorts where Disney has limited or no direct inventory (like Old Key West or Hilton Head) see ROFR exercised less often.
Price point matters significantly. Contracts priced well below market value are more likely to be taken. Competitively priced contracts typically pass ROFR.
Factors Affecting ROFR Decisions
Several factors influence whether Disney exercises ROFR:
- Price per point relative to recent sales
- Resort and current Disney inventory needs
- Contract size (small contracts pass more easily)
- Point status and use year
- Overall market conditions
Strategies for Passing ROFR
Work with an experienced broker who tracks ROFR patterns and can advise on pricing. Generally, pricing within the current market range provides the best balance of value and passage likelihood.
Extremely low offers may seem attractive but often fail ROFR, wasting months of waiting time. A realistic price that passes quickly may prove more valuable than a bargain that never closes.
What Happens If ROFR Is Exercised
If Disney takes your contract, you'll receive a full refund of any deposit within about two weeks. You can then search for another contract and try again. While frustrating, ROFR exercises are a normal part of the DVC resale market.
Some buyers adjust their target resort or price point after ROFR exercises. Your broker can help identify alternative contracts more likely to pass based on current market conditions.
