buying from a friend

[sanbornangel]

We have friends that want to sell us their points. Any suggestions on how to do this the right way? Can we go through any real estate agent. My sister is an agent.

 

[drusba]

It is a real estate transfer and thus you will need to go through the usual real estate transfer steps -- you need a written contract for sale (and price will have to be high enough to pass Disney's right of first refusal), the contract will have to be submitted to Disney for it to waive ROFR, and you will need to do a closing. For the closing you need a closing agency in Florida and all closing documents including a deed and closing statement, and documents will need to be filed with recorder in Florida and any fees and taxes paid. I believe there are title company/closing agencies that you can contact to do this in Florida (and I recall others mentioning some on this site before but I do not whom to contact). As to using your sister who is an agent, I think there may be a couple of issues with that -- if she is not registered in Florida, the issue is whether she can act as the agent since it is Florida property; also, if she has not done a DVC sale before, she is likely unfamiliar with usual contracts and process of ROFR.

 

[chalee94]

i would probably use the timeshare store's closing services. there would be no commission involved, but the contract still needs to be sent to DVC to pass ROFR and i'd feel more comfortable using an expert.

you could save a few bucks by doing yourself, though.

 

[Dean]

Closing is easy if you want to save $200 or more and feel comfortable with simple deed issues. As noted, you'll need a contract and to pass ROFR. It is illegal to put a different price than it is being sold/bought for and if the price is good enough, DVC can take it under ROFR. For such a situation you should not need title insurance.

 

[XGrumpy1]

If closing is easy, what is the process? Is the ROFR an easy process too?

 

[RobDoc]

ROFR is Right-of-First-Refusal. Once an offer has been accepted by the seller it must be submitted to DVC for review. Disney has 30 days to make their decision and they can either allow the sale to go thru or buy the contract themselves at the same terms. In either situation, the seller would receive the same amount. If DVC exercises ROFR, the buyer would have any deposit refunded and would need to start over looking for another contract.

There is a thread here tracking ROFR reports over recent months for each resort.

 

[Dean]

If closing is easy, what is the process? Is the ROFR an easy process too?

Contact DVC by email and they will email you a set of information on this subject including instructions. Prepare a contract that includes the appropriate information (price, contract #, points accounting, etc) and send it to DVC admin for consideration of ROFR. They will respond either buying it at your terms or with a release letter for ROFR. You then need a deed and to send it along with the ROFR recorded with the county (OC has the instructions on their website). Once you have it recorded, send a copy with the transfer form to DVC.

The ONLY sticking points IMO are the deed itself and just the comfort to move through the steps. Even then I don't really see the deed as an issue esp in this situation. The only point of contention IMO is whether to use a quit claim or warranty deed as some say that if you later sell, a quit claim MAY prevent securing title insurance. I also don't see this as an issue because the only financing that's going to tie up the title is through DVC and they won't convert it unless it's paid off. You can always search OC to be sure the seller actually owns it and to see if there is a recorded lien. Remember you've already gotten the exact legal description on the current deed and if the buyer, can easily get off OC website for WDW properties. But if one is uncomfortable on the deed, it's not difficult to get someone to do a deed for $100 though I have heard $75 mentioned for one company as well.

 

[XGrumpy1]

Thanks for the information! I will check it out.

 

[sanbornangel]

I had no idea it would be all that work. Thanks for all your help.