Selling to a friend

Discussion in 'Purchasing DVC' started by jagson, Sep 24, 2013.

  1. jagson

    jagson Mouseketeer

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    If I wanted to sell my contract to a friend/family member at a deep discount, and avoid ROFR, could I price it so high that ROFR passed it over; then refund the difference between the high asking price, and the deeply discounted price to the friend? Or is this illegal? I could refund the difference under the pretense that I was paying the friend for a service he provided, or gave it as a gift. Or would I have to explain to anyone the reason for refunding the overage?
    Couldn't anyone do something like this to avoid ROFR? I know it would take a leep of faith on the part of the purchaser re: receiving the refunded difference on the agreed to price.
    And when I die does my membership automatically pass on to my designated beneficiary, ie my wife or daughter? If so, does it keep all its benefits, or is it somehow stripped such that its more like a resale, that now has limitations? Or will it go on the resale market, and go through ROFR?
     
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  3. myzel

    myzel Mouseketeer

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    It is a deeded interest so you can pass it on in a will, or transfer it before hand to avoid estate taxes. I can see no issues with selling high and giving a refund but you would still be chancing ROFR. The best thing would be to talk to a realestate lawyer for the intricate details, if you just ask for a consult they usually have a set fee instead of hourly billing if you don't know one personally. What I would look into is transfering ownership to another "family" member.
     
  4. Anthony1971

    Anthony1971 DIS Veteran

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    IF you are selling to a friend you have no need to have a lwayer you just need to go through a closing company. You can make a contract on your own and have it notarized. You could sell the points for 100 a point with a 50% deposit paid for by the seller. Note that you will need to pay taxes on any gain from what you paid....
    Your wife will inherit all should you not have a will that says otherwise and further your children (consult a lawyer or research on your own for exact details of what will happen). You can also tarnsfer the Deed to a family member (wife, Children) without ROFR. But in all honesty just add them to the deed now to avoid any problems later on.
     
  5. crisi

    crisi DIS Veteran

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    Yeah, its illegal, its called fraud. You have a contractual obligation to let Disney exercise ROFR and in doing so, must provide them accurate information regarding the sale. Disney has been willing to let contracts transfer between family members for low prices.

    You can gift a contract.
     
  6. bighoo93

    bighoo93 Mouseketeer

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    I would just sell it at a fair market price (check listings and ROFR thread) and then give them a cash gift. Because if you sell to them at a below market price, that is what you are doing anyway. I don't know or care why you would sell to a friend at a substantial discount to market value, but if you do, you are just giving them a cash gift. Since that is what you are doing anyway, just be transparent about it.
     
  7. Msmithmd

    Msmithmd DIS Veteran

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    +1 bighoo. That's exactly what you are doing, and this is how you should go about the transaction without committing fraud.
     

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