Add spouse to DVC--need ROFR!!!

[Cruelladeville]

Is this something new that in order to add/remove a spouse you need all the same documents as you would if you sold it?? I received documents from Member Administration today that clearly states that if I wanted to add/remove a spouse/child from my ownership interest in DVC I would have to 1--repay the loan completely, and 2--ROFR, a letter to DVC indicating details of ownership transfer, have an attorney prepare a new set of legal documents to be recorded in Orange County.

I just can't get over this! I just wanted to add my husband's name to the deed, so that he could still use/sell DVC without waiting for everything to be probated, in the event that something happened to me. It's so much more complicated than I ever anticipated that it would be! When I bought DVC it never occurred to me that it would be a big deal to add DH's name later--it was an oversight. I told my guide, "I want to buy..." and he took me literally!

 

[pmcpmc]

you can add him as an associate for booking without cost.

 

[pirateeast]

This is a deed your adding someone to, just like any other deed inorder to add them you have to do a new deed, ie new paperwork to be rerecorded at the county recorders office. Disney needing the ROFR is b/c your changing owners and in their intrest want to keep a close eye on that. I am not a lawyer but I do believe inorder to add someone to a deed, ie change ownership of the property, there can not be any outstanding leans, ie loans, on the property.

 

[tripletvan]

Ditto! DM forgot when she had her closing to add my name as I do all the DVC leg work and we are spilting a percentage. When we realized that there would be only one card and that I live 4 1/2 hours away we called MS and were told that the complete loan had to be paid off in order to add my name and that the charge would be approx. $300! Mickey could have heard me screaming from NY!
Anyway we did make it so that I am an associate and she just has it in her will what to do in case anything happens before we pay it off. Oh well!
We have even thought about splitting the contract but I don't know if you can do that anymore and if it still has to be paid in full.

 

[disneyberry]

just confirming, that this is not something new.
to add or to drop a name from the deed, you have to request a waiver of ROFR.

usually they decide pretty fast, especially if you use the words "gratuitous transfer" in the waiver request.

 

[Dean]

While technically true, they give an automatic waiver in this situation. Any loan that changes names will either have to be paid off or get the loan companies permission to make the change. You can get it done for less using one of the one line companies or just a quit claim deed plus the waiver and recording fees. I'm assuming DVC will waive the transfer fee in this situation, they should, but you never know.

 

[JimC]

The reason for the payoff is that the lien is filed against the deed )currently in one spouse's name) that has been recorded. That lien must be released in order to transfer the title to a new owner (husband and wife). When that is done new title insurance is needed and if a new loan is to be filed then they mortgage holder will want to record a new lien (with a mortgage from both husband and wife against the new deed. If they don't follow this procedure it can create legal problems later if there is a default or other claim placed against the property.

It may seem silly and overly complicated but the details and order that each step takes has very serious legal consequences and is really important to protect all of the parties.

That said, if Disney holds the mortgage, both husband and spouse can be qualified and they both sign a new mortgage -- this should no more than a lot of paperwork.

Dean has already said that the ROFR is a detail (again a necessary one because of the way the ROFR works) that is really just a formality to ensure all legal necessities are properly covered.

 

[Cruelladeville]

While the ROFR is a detail, I think it's shocking that it's still the same as though I were selling the contract to a stranger, when I am just adding DH's name to the deed. He never makes ressies anyway, he wouldn't know how, but I thought it would be a good thing to have both our name's on a deed in case of someone's death. IF I die before that contract is paid off in another 4 years, it will be one big mess for DH. Of course, that's nothing compared to figuring out my checkbook....

 

[GAIL HAYDEN]

can't you just quit claim him on? They do that with real estate here in CT all the time.

 

[Dean]

Originally posted by Cruelladeville
While the ROFR is a detail, I think it's shocking that it's still the same as though I were selling the contract to a stranger, when I am just adding DH's name to the deed. He never makes ressies anyway, he wouldn't know how, but I thought it would be a good thing to have both our name's on a deed in case of someone's death. IF I die before that contract is paid off in another 4 years, it will be one big mess for DH. Of course, that's nothing compared to figuring out my checkbook....

It is not really the same. It's simply a formality albeit one that can be fairly expensive. If you have a mortgage, it's definitely prohibitive. Otherwise you could likely get by for around $100 as long as Disney waives their transfer fee, which they should. One of our contracts is only in my name because the lawyer messed up and I didn't catch it. He offered to fix it if I paid for the deed and recording all over again. I told him to stick it. I should have reported him to the Bar in FL and I'm still tempted ot post his name here even though it's been almost 10 years. Funny thing is that once we bought a second contract with both our names on it, they sent my wife a member card for the first contract where she is not on the deed and is only an associate member.