Pls explain specifics how to buy DVC privatly

Discussion in 'Purchasing DVC' started by Kcags, Aug 3, 2013.

  1. Kcags

    Kcags Mouseketeer

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    My husband and I are buying a DVC timeshare from friends of friends. I know that I have to contact Disney directly to get the paperwork to transfer everything over. After they review it, what do they send back to me? Can someone explain this process? AT what point do I need to deal with the closing costs and what are my options? Do I contact the law firm that did the closing for my mortgage? Do the buy and seller ever have to meet? They live in Florida and I am in PA. Thanks!
     
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  3. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    Here are the steps whether you do them or have someone else do so for a fee.

    • Contact DVC and have them email the instructions(or have the seller do it if you're not a member).
    • Included will be a transfer form, complete it and return to DVC to the address instructed. You'll need a contract since this is a sale, DVC may buy it at the price you've agreed upon, that is their legal right. Assuming they don't buy it under ROFR (Right of First Refusal) this will generate a ROFR waiver.
    • Record the waiver, a deed (quit claim is OK in this situation if you're not financing it) and submit the tax form required (info on Orange Co website assuming it's at WDW).
    • Once recorded, submit recorded deed along with the second transfer form that will come with the waiver.
    • Wait about 2-3 weeks, maybe longer for it to be changed over.

    Caveat's

    It's illegal in FL (and all states I know of) to put different terms on the forms to get it to pass ROFR.
    The seller must have 2 witnesses in addition and separate from the notary (notary can sign separately as a witness).
    LT transfers will do the closing for $95 plus $7 plus recording fees. You may still have to do the ROFR step on your own but that's easy anyway and you don't need escrow.
    If it's HH, CA or HI; I'd suggest you use a company but otherwise you should save the money, esp in this situation.
    Make sure you're not overpaying, it's easy to do so buying from a friend or acquaintance.
    Total cost if you do it yourselves about $50 if it's a single contract, if it's more than one let me know and I'll make a couple of other suggestions.
     
  4. Kcags

    Kcags Mouseketeer

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    You'll need a contract since this is a sale, DVC may buy it at the price you've agreed upon, that is their legal right. Assuming they don't buy it under ROFR (Right of First Refusal) this will generate a ROFR waiver.


    Thanks! Does DVC ever do this??
     
  5. dmunsil

    dmunsil Disney Uber-Nerd

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    Disney does exercise ROFR, even on private sales between friends. According to earlier posts (by Dean, IIRC) Disney has not in the past required sellers to follow through on the sale if Disney exercises ROFR. Normally a seller would want to follow through because they want the money, but if they're trying to sell it to a friend, obviously they would prefer not to sell it to Disney.

    So Disney has allowed people to raise their price and resubmit (which triggers another 30-day wait) so if you choose to you could resubmit the contract at a higher price and continue until the price is high enough (or Disney gets tired of it).

    It's conceivable that if you make it clear in the contract or the cover letter that this is a friendly sale, not listed on a brokerage, and your intent is to make sure that the deed transfers to that person, that Disney will waive ROFR to avoid the whole resubmission process. Or they might not. Or it's possible that they could decide to play hardball and threaten legal action if your friends don't actually follow through and sell them the contract. The fact that it hasn't happened before (as far as we know) doesn't mean that it couldn't happen in the future.

    You could also have your friends ask Member Admin directly if there's any special process for a friendly sale. My guess is no, but it might depend on how helpful the CM is who you talk to. There may be some special internal policy that they'd let you know about if they feel like it.

    You also might find that Disney will not confirm (or will actively deny) that they let people resubmit at a higher price. It could be that it's something that they quietly allow to happen, but don't feel that they can openly say they do.
     
  6. Sandisw

    Sandisw Moderator Moderator

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    IIRC, the TSS handles private sales for a flat fee when a seller already has the buyer . Give them a call as it might be worth what they charge since they do so many of them!!
     
  7. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    Something people tend to come up with in this situation is including something DVD couldn't duplicate, like part of the payment being a car or land. I'm not sure the legalities but when I was actually trading another timeshare for a DVC contract, DVC asked for a dollar value on the other timeshare. My first inclination was to push back but I wanted the deal to go through quickly so I did not. Fortunately the reasonable value was around the same for each so no way they were going to buy it back under ROFR. Another is they put one price but privately agree on another. I know it happens but it's illegal.

    Likely the best way to finagle this issue for those inclined to do so and who are working with a friend is a lease purchase situation. It goes something like this. You do a large trip on the points in question that occurs shortly before closing with an agreement to pay a lower amount as a rental for the pre-closing trip, say the dues on the points used. That amount is then deducted from the sale price if the sale goes through. It raises the relative price per points because it depletes the points at roughly the same purchase price. If the sale doesn't go through for any reason, you got a large trip for a much reduced fee. Of course you need to have both parties who trust each other and the seller isn't having financial issues.
     

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