Taking over contract from my parents

Discussion in 'Purchasing DVC' started by Marshay, Jan 9, 2014.

  1. Marshay

    Marshay I'm Goofy for Mickey. Don't worry if you get a bi

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    I am looking for an inexpensive way to "transfer" a DVC contract from my parents to me ... but still keep the DCL/ABD, etc advantage.

    My parents bought 170 pts at BoardWalk not from Disney but prior to the restriction of using points for DCL, etc (if not bought directly through Disney.)

    They no longer want to keep these points and would rather keep them in the family than go through another company and have to pay ~$2K in fees (title search, brokerage, etc).

    Is there a certain way they can sell/transfer/other wording the contract to me so that I can become the new owner but also still use these points for DVC stays + DCL, ABD, etc?

    I really wasn't planning to add on more points right now (already have SSR and AKV) but if I can help my parents out and also get more DVC points for cheaper than normal, I would consider taking over their contract.

    Advice?

    Thanks!
     
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  3. Chuck S

    Chuck S DVC Boards Co-Moderator Moderator

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    Certainly they can gift the contracts to you. I think you'll still need to contact member services/member accounting for a waiver of the ROFR. Assuming their contract is paid in full, and their is no outstanding loan balance, it should then be fairly easy to do a quit claim deed and file it with the appropriate county, depending upon which DVC they own.

    Gift a contract to family or inheriting a contract maintains the original status and allows you to keep the DCL/Disney Collection options. If they have the same use year as you do, it can probably even be merged into your existing DVC Member number.
     
  4. Marshay

    Marshay I'm Goofy for Mickey. Don't worry if you get a bi

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    Thank you for your response! I knew the DIS would help me.

    DH and I talked more and we decided although the deal is a good one, this is not the right time to put out that money.
     
  5. dbs1228

    dbs1228 DIS Veteran

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    This made me chuckle - you are certainly getting points cheaper some where in the ball park of 13,000.00 cheaper and your parents are very generous since they could easily walk away with more then 11,000.00 in their pocket with very little effort! Enjoy those points :thumbsup2
     
  6. Marshay

    Marshay I'm Goofy for Mickey. Don't worry if you get a bi

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    Well, we decided not to buy. We don't have the extra money, even though it is a good deal. BW is not our fav and the use year is different. My parents want the money now, not on a payment plan because ... They decided they now want to buy at BCV instead and buy more points.

    Go figure!
     
  7. WebmasterDoc

    WebmasterDoc Administrator Administrator

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    If you were going to purchase the contract from your parents, it would not be a gift and would likely invoke closer scrutiny in the ROFR process - where it might lose the non-DVC options like any other resale purchase.
     
  8. Marshay

    Marshay I'm Goofy for Mickey. Don't worry if you get a bi

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    Yes, this would not have been a gift...they now want the money to buy another contract!
     
  9. Dean

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

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    Exactly and to put terms different than the actual deal on the paperwork sent to Disney would have been illegal. I'd go a step further, it would almost certainly not have passed as a gratuitous transfer and retain the qualified status if done legally otherwise.
     
  10. Marshay

    Marshay I'm Goofy for Mickey. Don't worry if you get a bi

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    Um ....:confused3
     
  11. Dean

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

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    Not totally sure what you're meaning, but if you're asking for explanation, here are the possibilities you have.

    • Submit it for market value and pay market value and it would likely have passed ROFR but should become unqualified.
    • Pay and submit for a much lower price, Disney likely would have taken it and that would not only be their right but their obligation if the price were low enough. If it passed, they would still be unqualified points.
    • Given as a gift and submitted as such, automatic ROFR and he points would continue to be qualified.
    • Submit it for market value when you're paying less than market value. This is illegal in FL for RE transactions and all states where I've seen the info. FL would be the determining factor in this situation. This would be fraud.
     
  12. Marshay

    Marshay I'm Goofy for Mickey. Don't worry if you get a bi

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    Thank you for the list of options!
     

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