Disney Vacation Development has changed the language on the Notice it issues when it waives its right of first refusal. Part of the change reflects the loss of certain exchange privileges beginning March 20, 2011 for points bought on the resale market.
When a Disney Vacation Club Owner wishes to sell their points to another person, Disney Vacation Development has the right to step in and purchase the points instead. This is known as DVD's Right of First Refusal (ROFR). If DVD decides not to purchase the points, it issues a Notice of Waiver of Right of First Refusal. The Notice specifically states that the Owner is selling their points to another party.
If a Disney Vacation Club Owner wishes to make a gratuitous transfer of their points to another person, DVD routinely waives its right to step in and purchase the points, but it still issues a Notice of Waiver of ROFR. The language of the Notice indicates that it is a gratuitous transfer and that the Owner will not receive any consideration for the transfer.
Recently, DVD modified the language on Notices of Waivers. A new paragraph has been added for those transactions in which the Owner is selling their points. The Notices now include the follow paragraph:
Members purchasing their Ownership Interest in any DVC Resort from a person or entity other than directly from DVD shall not be able to use the Vacation Points associated with that Ownership Interest for reservations or stays through the Incidental Benefits known as the Adventurer Collection, Concierge Collection, or The Disney Collection. Do not purchase your Ownership Interest in reliance on your ability to transfer these products, services and Incidental Benefits if you sell your Ownership Interest or based upon their continued availability.
This new paragraph reflects the change, effective March 20, 2011, that points bought on the resale market instead of directly from DVD would not be able to exchange into the Adventure Collection, the Concierge Collection, or the Disney Collection which includes the Disney Cruise Line.
The change is starting to appear on Notices filed and recorded with the Orange County Comptroller June 30, 2011, and later.
DVD is also beginning to add another new paragraph to its Notices regarding the amount of points available for use. The following paragraph began appearing on some Notices of Waiver filed and recorded in late June 2011:
DVD is not responsible for confirming the amount of the current year's allotment of Vacation Points from the Ownership Interest that may currently be available for use by Grantee. Grantee is solely responsible for confirming with Grantor the amount of Vacation Points currently available for use.
Both of these new paragraphs are appearing on Notices of Waiver involving points that are being sold. They have not appeared on any Notices of Waiver involving gratuitous transfers.
