Buying a friend's DVC?

labdogs42

DIS Veteran
Joined
Dec 2, 2005
I have a friend who is looking to unload a DVC contract and it is exactly what I want. I'm not a current DVC member, but I have looked into it for a long time. How would we go about doing the transaction? Would we need to use a broker or could we just use a lawyer, like when buying a house? Thoughts? I'll have a few more questions after this one! Thanks!
 
Any transaction has to be submitted to Disney. They have the Right of First Refusal (ROFR) on all sales. So, write up the details of the transaction, and Disney will have the opportunity to buy it out from under you.

Your friend should be able to call Member Services and get all the details. You'll need an attorney or title company to complete the closing, unless you really want to do that yourself. Yes, it's exactly like buying a house, because it's the exact same thing; a deeded real estate interest.
 
I have a friend who is looking to unload a DVC contract and it is exactly what I want. I'm not a current DVC member, but I have looked into it for a long time. How would we go about doing the transaction? Would we need to use a broker or could we just use a lawyer, like when buying a house? Thoughts? I'll have a few more questions after this one! Thanks!
You don't have to use either a lawyer or a broker. I would call Member Administration (NOT MS) and get the details, and then use a reputable title company that deals with DVC. We've used Magic Vacation Title several times with excellent service.
 
You don't have to use either a lawyer or a broker. I would call Member Administration (NOT MS) and get the details, and then use a reputable title company that deals with DVC. We've used Magic Vacation Title several times with excellent service.

Oh, awesome!! So, that would save us a couple of bucks, right? Where do I get the number for Member Administration?
 
Oh, awesome!! So, that would save us a couple of bucks, right? Where do I get the number for Member Administration?
Same phone number (different option on menu) as Member Services (which you friend should already have).
 
So I am curious on this situation. Say your friend wanted to give you a really good deal on the timeshare, but too good a deal that it would put it at the risk of being taken by Disney. How could you get around this? I think you would still have to look at the ROFR for the properties to make sure the price per point is in line with what is being passed on. -- Just something i was thinking about. I am sure if the property was BLT and your friend wanted to sell it to you for 90pp that might get taken.
 
So I am curious on this situation. Say your friend wanted to give you a really good deal on the timeshare, but too good a deal that it would put it at the risk of being taken by Disney. How could you get around this? I think you would still have to look at the ROFR for the properties to make sure the price per point is in line with what is being passed on. -- Just something i was thinking about. I am sure if the property was BLT and your friend wanted to sell it to you for 90pp that might get taken.

I was assuming if I looked on the resale sites and offered my friend the lower end of the going rate for that property, we'd be OK as far as ROFR goes, but I'm not sure. So, they have Saratoga Springs points. I'm seeing those going for about $79-$89 a point. Would we be safe if I offered him $80 a point?
 
You might need to make the paperwork look like the price per point is in line with the going rate, but maybe work in an amount back or discount at closing. It almost doesn't make sense for you to be paying what the resale companies are getting because they also are making a 8-10% listing fee. Just something to consider to make sure the deal is fair.

The price per point would vary based on the status of the contract - loaded or stripped. Usually larger contracts will sell for a lower price per point and smaller (50pts) at a very inflated price. Some of the experts here might have a better idea on a price for that contract if you give them more details on the property. Usually they would want to know points banked, current year and future year points. Plus deciding who is responsible for next years MF (dependent on points used) and use year.
 
You might need to make the paperwork look like the price per point is in line with the going rate, but maybe work in an amount back or discount at closing. It almost doesn't make sense for you to be paying what the resale companies are getting because they also are making a 8-10% listing fee. Just something to consider to make sure the deal is fair.
That would violate Florida law. I don't think I'd want to risk five years in prison to get a slightly better deal on a DVC contract.
 
That would violate Florida law. I don't think I'd want to risk five years in prison to get a slightly better deal on a DVC contract.

Yeah, I'm not into that idea. And I'll save a few bucks by not using an agent. Am I right to assume that their commission is on TOP of the price per point quoted on their resale websites?
 
Yeah, I'm not into that idea. And I'll save a few bucks by not using an agent. Am I right to assume that their commission is on TOP of the price per point quoted on their resale websites?

Seller almost always pays the broker's commission (unless negotiated differently). It comes out of the seller's proceeds, so it's not on top of the price per point listed on a broker's website. Rememberr that everything is negotiable and many do not pay listed price.
 
I have a friend who is looking to unload a DVC contract and it is exactly what I want. I'm not a current DVC member, but I have looked into it for a long time. How would we go about doing the transaction? Would we need to use a broker or could we just use a lawyer, like when buying a house? Thoughts? I'll have a few more questions after this one! Thanks!
I'd have your friend email DVC and get the information for transfer. Since you don't need title or a full service closing, you could do it yourself or get a company like LT transfers to do it, depending on whether you wanted to fool with the deed. As noted by Jim, putting something different than the agreement on the contract to pass ROFR is a violation of state law (and all states I know of). If you include other items that are not reproducible such as a barter situation, they normally just require you put a value on it and use that info to make the determination. It's really not that difficult to do it yourself. Maybe $40 if you do it all including a quit claim deed, add another $150 or so for some of the timeshare specific companies, assuming it's a FL deed.
 
So, if I see prices on resale sites at $79-$89 a point, what are they actually giving Disney? What is Disney basing their ROFR on? How do I know what to offer to get it approved?
 
So, if I see prices on resale sites at $79-$89 a point, what are they actually giving Disney? What is Disney basing their ROFR on? How do I know what to offer to get it approved?
The ROFR process is best imagined as a blindfolded monkey throwing darts at contracts to determine which get taken. There is no defined rhyme or reason. We've seen SSR pass at $64/point and get taken at $78/point in the same week.
 
So, if Disney refuses, can you up the offer or do they automatically take the points back?
 
So, if Disney refuses, can you up the offer or do they automatically take the points back?
If DVD (Disney Vacation Development) exercises their right of first refusal (ROFR), they purchase the contract at the agreed upon terms. There is no way to modify the offer if DVD decides they want the contract.
 
So, if Disney refuses, can you up the offer or do they automatically take the points back?
Nope. Disney becomes the buyer at that point. What does the seller care? They get exactly what they bargained for. It's just one of the reasons that buying from an individual really doesn't come with any benefit for the buyer.
 
So, if Disney refuses, can you up the offer or do they automatically take the points back?
They have done this in the past but I haven't heard of it happening in a long time. My suggestion is to look at the ROFR thread and decide what level you are confident it will go through then pay that. You're still saving on closing and the seller is still saving commissions. One way to get added value is to take a trip ahead before the closing that is free to you as a bonus. That way you have an advance discount that's not reflected in the price. Another is to try to include things that couldn't be reproduced. I'm the only one I recall hearing about that has done that (trading one timeshare for another, one DVC) and they wanted us to put a value on each. I considered calling their bluff but we both wanted to get it moving so we put a value on each that was fair and accurate.
 

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