Buying as a group to get the incentive and then using a quit claim deed to seperarte?

[HannaBelle]

DH and I along with DB and DSIL have decided we each would like 160 points at BLT. I called in and talked to a guide about purchasing a total of 320 points for the $12 off per point, but making it 2 different contracts. That is a no go… (I figured as much, but it never hurts to ask! lol)

His suggestion is to purchase 4 blocks of points, 100+60+80+80, for a total of 320. List all four of us on the deed, then we can use the quit claim deed for DH and I to be removed from their contracts and them to be removed from our contracts. We are not financing, so that would not be an issue. We do want 2 separate member numbers so we do not have to worry about the “shared” aspect of continued multi family ownership.

It sounds easy enough, but I want to make sure it is as easy as it sounds before we move forward… The guide did tell us that it would be around $300 to complete the quite claim deed.

Anyone every do this?

TIA!

 

[Deb & Bill]

This just sounds to complicated to be a good idea. Why not each just get your 160 points?

 

[Dean]

DH and I along with DB and DSIL have decided we each would like 160 points at BLT. I called in and talked to a guide about purchasing a total of 320 points for the $12 off per point, but making it 2 different contracts. That is a no go… (I figured as much, but it never hurts to ask! lol)

His suggestion is to purchase 4 blocks of points, 100+60+80+80, for a total of 320. List all four of us on the deed, then we can use the quit claim deed for DH and I to be removed from their contracts and them to be removed from our contracts. We are not financing, so that would not be an issue. We do want 2 separate member numbers so we do not have to worry about the “shared” aspect of continued multi family ownership.

It sounds easy enough, but I want to make sure it is as easy as it sounds before we move forward… The guide did tell us that it would be around $300 to complete the quite claim deed.

Anyone every do this?

TIA!

I would partially agree. What I would do would be to buy in one name OR the other in multiples that work for you separating it. Maybe 80*4 or 160*2 or 100+100+60+60, etc. Then you ONLY have to change one of the contracts rather than both. Remember you can't change a contract ownership that has a mortgage on it. You can change it yourself for less than $50. However, I'd ask again on getting two contracts together for the cheaper price. Ask your guide to talk to a supervisor and ask for that option if they didn't already. Consider the closings costs though which will be separate for 2 different contracts even if they give you the cheaper price.

 

[arthur06]

I would recommend not doing it that way... I would try to get signed up for the webcast and hope that there is a better deal then the $6 pp off 160 point purchase.... Maybe they will give an extra $3 off making it closer to the $12 that you get on 320.

 

[vicki_c]

I must be slow, because I don't get what's different about two contracts of 160 each, or this blocks of points - 100, 60, 80, 80 -- if the 2 160 pointers don't qualify for the $12 discount (because they are 2 contracts, not one), how would this "blocks of points" qualify for the discount?

I don't get it!

 

[hakepb]

I'm guessing the OP is talking about 2 different contracts with different owners vs 4 contracts in the same owner (to be changed later)?
I would wonder if there would be more fees associated with changing 4 contracts vs buying 4 but only 2 need the owner changed or buying 2 and only changing the owner on 1.. (Although the smaller contracts are better for possible future resale or inheritance)

 

[MinnieGirl33]

I am guessing you want the larger point total in order to qualify for the larger $ off incentive?

Once you pay for the quit claim deed, is the money saved worth the aggravation?

 

[Dean]

I am guessing you want the larger point total in order to qualify for the larger $ off incentive?

Once you pay for the quit claim deed, is the money saved worth the aggravation?

It's about $2K less. You can do the quit claim yourself for under $50 but if you pay http://www.timetraveltraders.com/, you're still out under $100.

 

[Sandisw]

If I am calculating this correctly, each of you would be saving an extra $960.00 doing it this way vs. buying your own.

For me, that is not enough of a savings to go through the hassle of buying this way. And, if you live in a state that allows for referrals, why not have one of you buy and then have the other one buy using the others name as a referral.

This would get the original owner $200 right off the back, bringing the difference down a bit more.

Good luck!!!

 

[HannaBelle]

To be eligible for $12 off per point, we have to buy a minimum of 320 points. Our guide says he is not able honor that price if we each buy our own 160 point contract.

Ideally, we would like to have blocks to divide up evenly for our kids…2 for DB and 2 for us. Our guide is not able to break it out into an 80+80+80+80. The first block has to be 100 and we do not have to pay closing costs on the other 3 blocks.

We feel that purchasing this way will definitely be less of a hassle than watching the resale market and then paying higher closing cost for those contracts.

We are able to choose our use year and get 2009 points without paying MF when buying directly from DVC. That is worth paying the processing fees for the quit claim deeds. We are not financing and it

I was just curious if anyone had done this and what was their experience.

Thanks for all comments!

 

[Dean]

To be eligible for $12 off per point, we have to buy a minimum of 320 points. Our guide says he is not able honor that price if we each buy our own 160 point contract.

Ideally, we would like to have blocks to divide up evenly for our kids…2 for DB and 2 for us. Our guide is not able to break it out into an 80+80+80+80. The first block has to be 100 and we do not have to pay closing costs on the other 3 blocks.

We feel that purchasing this way will definitely be less of a hassle than watching the resale market and then paying higher closing cost for those contracts.

We are able to choose our use year and get 2009 points without paying MF when buying directly from DVC. That is worth paying the processing fees for the quit claim deeds. We are not financing and it

I was just curious if anyone had done this and what was their experience.

Thanks for all comments!

I haven't seen anyone who's done it exactly that way though I've seen a couple that added on for a small contract then spun it off. I bought 100 @ 4*25 at AKV and considered selling off 2 or 3 or the 25 pt contracts and keeping the smaller amount. my thinking if I do that (still might) is that I'll have member benefits but I almost never stay on points. I do know others who have been allowed to break it down to less than 100 if the total amount was over the minimum, you might push on that item and see if you can get 4*80

 

[Deb & Bill]

To be eligible for $12 off per point, we have to buy a minimum of 320 points. Our guide says he is not able honor that price if we each buy our own 160 point contract. Ideally, we would like to have blocks to divide up evenly for our kids…2 for DB and 2 for us. Our guide is not able to break it out into an 80+80+80+80. The first block has to be 100 and we do not have to pay closing costs on the other 3 blocks. We feel that purchasing this way will definitely be less of a hassle than watching the resale market and then paying higher closing cost for those contracts. We are able to choose our use year and get 2009 points without paying MF when buying directly from DVC. That is worth paying the processing fees for the quit claim deeds. We are not financing and it I was just curious if anyone had done this and what was their experience. Thanks for all comments!

If 320 isn't that expensive for you, how about 360? 100+100+80+80. One of you would buy the 200, the other the 160.

 

[YourEveryDayAdam]

Another option is for one of you to buy two 160 point contracts (or any combination of contracts that you want to get the points you each wish). Then once you've closed with Disney, turn right around and "sell" the contract to the other person. Disney would most assuredly pass on ROFR if you sell it at the current going full retail price.

 

[a742246]

Why don't you check out the resale market. You can get a BLT contract for 100-1003 a point.

 

[drusba]

What you say may be possible but understand you will need to go through another closing process to make sure all the proper documents are filed with the public real estate records and pay any recording fees or taxes. That will take some time -- you have to first close on the Disney contract and then do the new transfers and close on those. Also understand that unless you buy a second title insurance policy, once that transfer is complete the deed you receive will not be covered by title insurance (which is unlikely necessary but something to consider).

Also, what you would be doing with that second set of transfers is called a like kind real estate transaction. That second set of transfers would mean you are transfering your interest in certain contracts and in return getting their equally valued interests in other contracts. Any such transaction needs to go through Disney's right of first refusal. If it were a gift transaction, Disney would automatically waive the right. But that is not what it is. You are essentially selling your interest at a price that equals the monetary value of theirs and vice versa and Disney could potentially exercise ROFR in that situation although unlikely because the deemed "price" would be the same or about the same that you paid originally since value won't change in only a few months. That fact should also save you from having to pay any capital gains taxes on the transaction.

Finally, I am surprised this was suggested by the sales rep because there is some risk that Disney could view this as a potential fraud that could permit it to void the original sale. Your intent is not actually to buy 320 points for yourself but instead to "game" the system and induce Disney to unknowingly give you the higher discount when your true intent is to buy only 160 points which would cost more per point. If Disney actually raises the issue you can bet the sales rep will deny he ever suggested it unless you have his suggestion confirmed in writing.

 

[Dean]

What you say may be possible but understand you will need to go through another closing process to make sure all the proper documents are filed with the public real estate records and pay any recording fees or taxes. That will take some time -- you have to first close on the Disney contract and then do the new transfers and close on those. Also understand that unless you buy a second title insurance policy, once that transfer is complete the deed you receive will not be covered by title insurance (which is unlikely necessary but something to consider).

Also, what you would be doing with that second set of transfers is called a like kind real estate transaction. That second set of transfers would mean you are transfering your interest in certain contracts and in return getting their equally valued interests in other contracts. Any such transaction needs to go through Disney's right of first refusal. If it were a gift transaction, Disney would automatically waive the right. But that is not what it is. You are essentially selling your interest at a price that equals the monetary value of theirs and vice versa and Disney could potentially exercise ROFR in that situation although unlikely because the deemed "price" would be the same or about the same that you paid originally since value won't change in only a few months. That fact should also save you from having to pay any capital gains taxes on the transaction.

Finally, I am surprised this was suggested by the sales rep because there is some risk that Disney could view this as a potential fraud that could permit it to void the original sale. Your intent is not actually to buy 320 points for yourself but instead to "game" the system and induce Disney to unknowingly give you the higher discount when your true intent is to buy only 160 points which would cost more per point. If Disney actually raises the issue you can bet the sales rep will deny he ever suggested it unless you have his suggestion confirmed in writing.

One could get this done within about 6-8 weeks. No title insurance is really needed in this situation since the "buyer" would know the paper trail, actually title insurance normally isn't needed with DVC as it's easy to be sure that one is getting a clean ownership. I know many assume since it's real estate that you need it but you really don't if you do a little due diligence. There really isn't any fraud just like one could buy and turn around an resell if they wanted. ROFR is easy and one could do this themselves for under $50 even with transferring 2 deeds instead of one. No need to do a like kind transfer because there's really no need to put the second party on the original contracts but if they did, DVC does give automatic ROFR for removing names from a contract.