Buying resale from family member

[monymeier]

Hi. I have a family member who is interested in selling me his DVC. Was wondering if anyone has done a private party resale? What is the best way to go about this? Do we still need a broker? Any experience is appreciated?

 

[calypso*a*go-go]

I think your best bet would be to call MS and speak to someone in accounting to find out the best way to do this to assure it gets past ROFR. There are many people on this board that are more familiar with the legalities, so hopefully some of them are online today and can give more specific advice.

 

[tamu91]

It still has to go through ROFR process, I believe, so make sure it's done correctly as to not lose the contract to Disney

 

[ColoradoBelle1]

There seems to be some confusion as to the use of a broker in buying/selling DVC.
The broker's job is to facilitate a buyer hooking up with a seller. You already have that, so no, you don't need a broker in this case.
You MIGHT need the help of a closing company IF you decide that you don't want to deal with the transfer of title and recording of it in Florida.
If it is direct family, Disney handles things somewhat differently...but I think it has to be a parent, child, sibling. But Disney accounting can guide you through their process in this case.
Since it is family,and with Disney's structure in place, I doubt you need title insurance...which is for when you do not know the seller and want to make sure that the title is clear. So paying a broker or a closing company is not the best use of money.

Depending on whether DVC will waive ROFR for family, you need to be careful in the contract so that Disney doesn't take it. One way would be to list the selling price somewhat higher than the going rate. Or, you could try doing a TRADE of property....Your cousin gives you DVC and you give your cousin a boat. Disney would have to match the offer, and I doubt they would want to come up with a boat.

So first, contact Disney and ask them if there is special handling of a family transfer.

Good luck...and maybe post here to tell the rest of us what happened.

 

[JohnNJ]

Very good advice, Colorado Belle.

 

[SleepyatDVC]

There seems to be some confusion as to the use of a broker in buying/selling DVC.
The broker's job is to facilitate a buyer hooking up with a seller. You already have that, so no, you don't need a broker in this case.
You MIGHT need the help of a closing company IF you decide that you don't want to deal with the transfer of title and recording of it in Florida.
If it is direct family, Disney handles things somewhat differently...but I think it has to be a parent, child, sibling. But Disney accounting can guide you through their process in this case.
Since it is family,and with Disney's structure in place, I doubt you need title insurance...which is for when you do not know the seller and want to make sure that the title is clear. So paying a broker or a closing company is not the best use of money.

Depending on whether DVC will waive ROFR for family, you need to be careful in the contract so that Disney doesn't take it. One way would be to list the selling price somewhat higher than the going rate. Or, you could try doing a TRADE of property....Your cousin gives you DVC and you give your cousin a boat. Disney would have to match the offer, and I doubt they would want to come up with a boat.

So first, contact Disney and ask them if there is special handling of a family transfer.

Good luck...and maybe post here to tell the rest of us what happened.

Great post!

I kept having weird sales clauses going through my mind. Like having a clause in the contract for a trade 10 weeks of lawning mowing or naming our next child after the seller! I can think of of other ridiculous things too. Sometimes I crack myself up! Even if no one else gets the joke!

 

[Dean]

My understanding is DVC will give an automatic waiver for immediate family members though that may only apply to a gift. Otherwise, it's just like any other resale. And it is illegal to inflate the numbers simply to get by ROFR by putting a price different than the actual sales price, any rebate or similar scheme. I'd definitely call and talk to them but get your ducks in a row first. If you plan on being on the other side of any of these legals issues, you may not want to alert them to your plans.

 

[JimMIA]

And it is illegal to inflate the numbers simply to get by ROFR by putting a price different than the actual sales price, any rebate or similar scheme.

Dean is absolutely right on this, and that's a real issue buying from a relative without a broker. The real reason you would want to buy that way would be to buy below the market, but if you do, Disney is likely to snatch it up via ROFR. I'd sure do as others have suggested and get some authoritative guidance from Disney -- and the way interpretations change from CM to CM, and from moment to moment, I'd get it in writing!