Another question concerning property transfer as well as associate status

[snap21]

quick question: with my wife and I looking to buy our cousin's DVC membership and our concerns over the ROFR, we were told that we could be added to the membership as associates so that we could do the things that DVC members do (i.e making ressies, banking, borrowing, etc). The question we have is this: our cousins are older and as such, if we were added as associates, could they drop off if they wanted to in essence leaving us as the members in charge? Could we be added as associates and then have her add us as associates and then have her attorney add us to the will? We are buying her membership, but she wants to sell it to us for $9500. Disney would most certainly invoke ROFR on the 190 pt membership at OKW. We are trying to explore our options so that we can buy this membership from her and still keep it in the family. We want to keep this legal so that we (my wife and I) can benefit from full membership and any and all tax benefits that may come from property ownership. You're help is most appreciated. Thank you

 

[PamOKW]

I'm far from a legal authority but my guess is that there is no way you can actually complete a real purchase without Disney being aware of the transaction. They will know when the deed is recorded.

You could probably "unofficially" purchase it from your cousin as you describe. Being an associate you could make reservations. However, all billing would have to come through your cousin to you and then be paid. I would certainly make sure that the property is officially deeded to you in your cousin's will.

 

[Cruelladeville]

Everything depends upon trust. If you trust your cousin, have her add you as associate members, and keep paying on the loan until it's paid off. You should not have any problems. Your cousin can't change the deed until the loan is paid off, so you can't be added as owners yet. If you are doing things that way, you might want to be listed as heirs to the DVC in her will. That would depend upon how old she is, and how long till the loan is paid off. I am currently paying off my daughter's DVC loan, and I tried to get the name change made on her documents, too. The loan is the stumbling block. I would have had to pay off her loan, get my own loan, and then pay for all the documents to be changed--about $300, I think, but I have heard some members say the price was as much as $800. In my case, I trust my daughter, so I became an associate member on her membership. I pay the bills and maintenance fees. I can bank, borrow, and make reservations. The only thing you won't be able to do is get info about the loan status, since they won't give that info to associate members. Either have your cousin get that info for you, or tell them that you are your cousin, if you need to have any information. Good luck!

 

[Caskbill]

You might contact Disney and tell them you're looking to transfer ownership within your family and see if they will waive their ROFR.

We bought in 1993, and my brother wanted to buy but not the minimum (200 I think) at that time. So he gave us the money and we bought another 85 points on our contract, but for him to use.

A couple of years later after he had purchased some additional points on his own, it made sense to 'sell' the 85 points back to him. Since he paid for the points in the first place, the 'selling' price was going to be zero. Concerned about their ROFR we contacted Disney and explained and they sent me a letter stating they would not exercise their ROFR on this exchange.

I know your situation is a little different, but you still might just ask to see if they will waive ROFR for your 'sale'.