|03-27-2013, 12:50 PM||#1|
Join Date: May 2009
Location: BLT, AKV, Aulani
Percent of Resales Passing ROFR -- UPDATED 4/09/2013
Out of curiosity, I looked at the Orange County Comptroller's website to see how times Disney Vacation Development waives its Right of First Refusal on resale transactions. Given the number of resale transactions, I limited my search to records recorded by OCC during January and February 2013.
Whenever a DVC deed changes ownership, DVD issues a Notice of Waiver of Right of First Refusal. If it is gratuitous change of ownership in which no financial consideration is involved, such as when a deed is given to another family member, DVD issues a Notice of Waiver that explicitly states it is a gratuitous transfer. If an owner wishes to sell his or her deed, then the Notice of Waiver indicates it is being sold and includes language about the exchange limitations placed on the future use of the deed.
In January and February 2013, 621 Notices of Waiver were filed and recorded by OCC. Of these, 228 were Gratuitous Waivers and 393 involved deeds being sold.
For the 393 deeds that were being sold, DVD could have exercised its Right of First Refusal and stepped in and purchased the deed from the owner. However, it declined to do so. Instead, data I track in another thread shows that DVD exercised ROFR on only 27 deeds during January and February 2013.
The following chart shows the number of Notices of Waiver by DVC resort for January and February 2013. The column "% Passing ROFR" is based on "ROFRed Deeds" divided by "Waiver of ROFR."
EDITED: While going through records filed by DVD with Orange County Comptroller, I discovered some Notices of Waiver are recorded on the OCC website as "Affidavits." There were five affidavits recorded in January and February 2013 (two for BLT and one each for BCV, SSR, and VWL). I have revised the chart below to reflect these additional deeds.
While collecting this data, I did not attempt to count the number of points contained in each deed, nor the Use Year of each deed. Although this information can be extrapolated from information on the Notice of Waiver, it is a very tedious process for such a large population.
OCC no longer displays the Sale Consideration Amount on deeds. Thus, it is impossible for me to determine the prices on the deeds that DVD does or does not ROFR.
There are several precautions I should list about interpreting this data. One, this is just a one-time snapshot of the data. The time period I picked might not be typical compared to other time periods. And two, there is a delay between when DVD issues a Notice of Waiver and when the Notice is recorded with OCC. Notices are not filed until a resale transaction has closed, which can sometimes be several weeks or months after DVD issued the Notice of Waiver.
Edited: Revised spreadsheet to correctly compute percentages, as pointed out by Rob S.
Last edited by wdrl; 04-09-2013 at 12:05 PM. Reason: Revised Chart
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