Buying a DVC contract from a family member

[mlj0916]

Hi!
I have been doing some research as I have a family member looking to get rid of their DVC contract and I had a few questions. Here are the details:
-Home Resort: Saratoga Springs
-Points Per Year: 150
-The original purchase price was $15,000
-The contract was financed and the pay off is $7500

Here is my question, the family member is looking to get rid of this contract and offered to give it to me, basically for the remaining balance of $7500

I have read a lot on these boards of Disney's ROFR. Would the family member be able to transfer this contract to me and would ROFR be exercised? Would closing costs apply?

Thanks so much!

 

[Dean]

Hi!
I have been doing some research as I have a family member looking to get rid of their DVC contract and I had a few questions. Here are the details:
-Home Resort: Saratoga Springs
-Points Per Year: 150
-The original purchase price was $15,000
-The contract was financed and the pay off is $7500

Here is my question, the family member is looking to get rid of this contract and offered to give it to me, basically for the remaining balance of $7500

I have read a lot on these boards of Disney's ROFR. Would the family member be able to transfer this contract to me and would ROFR be exercised? Would closing costs apply?

Thanks so much!

I doubt the original purchase price were $15000. I'm thinking that SSR opened around $72 a point with bonus points added. More likely the original purchase was in the range of $12000 or lower. $7500 is $50 a point, a fair price but you may be able to do better on the open market. You won't be able to transfer it without ROFR or paying off the loan. And it's illegal to put a price different than the actual sales price. If you plan to buy anyway, this contract and home resort fits your needs and you're comfortable with the price ($7500 plus closing) and you won't have to pay any dues back that have already been paid, that seems fair if it's not a stripped contract. However, it's definitely not a sweetheart deal.

 

[dbs1228]

Dean my exact thoughts. Look at other resale contracts 1st, if the contract works for you great. 50.00 pp is not a "deal" you can find that type of contract from other resales. It is not a bad deal either just average. I would make sure you know what you are buying. Good luck.

 

[DVC Dude]

50.00 pp is not a "deal" you can find that type of contract from other resales.

I 100% disagree...this is a GREAT deal as it can't be reproduced via other resales.

The resale rules changed on March 21st for everyone with ONE exception - IF this is a family member, then you are still eligible to buy the contract from your relative and still retain ALL the features of the DVC contract, unlike buying a "restricted" resale contract on the open market at the present time.

I think the DVC technical term is - Gratuitous transfer

 

[ORD2KOA]

Hi!
I have been doing some research as I have a family member looking to get rid of their DVC contract and I had a few questions. Here are the details:
-Home Resort: Saratoga Springs
-Points Per Year: 150
-The original purchase price was $15,000
-The contract was financed and the pay off is $7500

Here is my question, the family member is looking to get rid of this contract and offered to give it to me, basically for the remaining balance of $7500

I have read a lot on these boards of Disney's ROFR. Would the family member be able to transfer this contract to me and would ROFR be exercised? Would closing costs apply?

Thanks so much!

I don't have experience with this, but what I would do is to find out what it takes to add a family member to a contract. And subsequent to that, what is necessary to remove someone from a contract. If that sort of idea would work for you, you could be added to the contract, assume the mortgage payments and when it's paid in full, you remove the relative from the contract. It could be as easy as filing some paperwork and paying some recording fees.

You didn't ask about the price, but since others opined, I'm adding my $0.02 -- I think it's a great deal.

Good luck!

 

[dzorn]

I 100% disagree...this is a GREAT deal as it can't be reproduced via other resales.

The resale rules changed on March 21st for everyone with ONE exception - IF this is a family member, then you are still eligible to buy the contract from your relative and still retain ALL the features of the DVC contract, unlike buying a "restricted" resale contract on the open market at the present time.

I think the DVC technical term is - Gratuitous transfer

I don't think this is correct if you are selling it to a family member I think it will be treated as any other resale. If you were gifting it to them I think it retains all the orginal features.

Denise in MI

 

[rock_doctor]

Gratuitous means free. So they would have to give it to you. If you can trust the family member to transfer it to you as a gift. I wonder if you have to assume their loan? If you pay the loan off and then transfer it then you have basically bought it.

 

[drusba]

As it could be considered a sale if you pay $7500, Disney could exerciose ROFR. If you want to try to avoid ROFR, I would suggest that the owner, possibly along with you, contact member accounting and explain that you are relatives, that the owner wants to give the property to you subject to the aasumption of the loan or your pay off of it and ask if that can be arranged without Disney asserting ROFR. Disney won't accept the assumption of the loan by you but may accept the pay-off and allow the transfer and treat it as a gift without exercising ROFR.

As to closing costs, yes there will be some because you will be changing ownership via deed of the property and thus there there needs to be filing of necessary papers and paying any usual filing fees and taxes.

Note, you cannot do what one post suggests above and that is to have you added to the ownership and then have them removed. That still requires a change in deed and, as long as there is a loan attached to the property, Disney will not approve the addition (or removal) of anyone as an owner.

 

[Dean]

I 100% disagree...this is a GREAT deal as it can't be reproduced via other resales.

The resale rules changed on March 21st for everyone with ONE exception - IF this is a family member, then you are still eligible to buy the contract from your relative and still retain ALL the features of the DVC contract, unlike buying a "restricted" resale contract on the open market at the present time.

I think the DVC technical term is - Gratuitous transfer

For the retail benefits to cont it must be both an immediate family member AND for free as I understand it. This is not a can't pass deal. It might be a good and fair deal for both parties.

 

[KingRichard]

Can't they be added to the deed and or as a member to use the points and make the payments on behalf of the original member. After loan is paid off, remove the original member?

 

[drusba]

Can't they be added to the deed and or as a member to use the points and make the payments on behalf of the original member. After loan is paid off, remove the original member?

They cannot be added to the deed. They can be added as associate members (not full members) to the DVC account. However, they would have no ownership interest while paying off that loan or paying dues on behalf of the member. If that member happens to die, they may get nothing unless that member wills it to them. If down the line (say one week before they make the last payment on the loan) the member says thank you but I am now removing you as an associate member and will be using the membership for myself, they may also be out of luck. Moreover, they would not be entitled to any of the DVC perks available to a member.

 

[AnnaS]

Welcome to Dis. Good luck and would love to know the outcome.

 

[Dean]

Can't they be added to the deed and or as a member to use the points and make the payments on behalf of the original member. After loan is paid off, remove the original member?

One can change the deed and add others. No one knows whether one would then be able to later remove the original names and keep the benefits. It all depends on how they track it and the decision DVC makes. However, one would have to first pay of the loan to make any changes in the deed.

 

[Splashboat]

Dean my exact thoughts. Look at other resale contracts 1st, if the contract works for you great. 50.00 pp is not a "deal" you can find that type of contract from other resales. It is not a bad deal either just average. I would make sure you know what you are buying. Good luck.

I have been looking into purchasing DVC for a while. I have not seen anything as low as $50 pp except for Vero. Where can I find these offers?

 

[Dean]

I have been looking into purchasing DVC for a while. I have not seen anything as low as $50 pp except for Vero. Where can I find these offers?

At this point you'll have to make offers

 

[dvc at last !]

I did not know you could do this.