Can a DVC owner purchase add-on for someone else?

[snowbunny]

Does anyone know if a DVC owner can purchase an add-on direct from Disney and put that contract in a relative's name? That is, the relative becomes the owner of the new contract and a member in their own right? The scenario would be purchase of 25 points at a different resort than we own, as a gift for a family member.

 

[Chuck S]

I think your best bet for that type of transaction would be a resale through a broker. It's a very nice gift idea, but I think that Disney, since it is a different name, would require the same minimum number of points as it would for a "new" contract/membership though them.

For a definite answer, I'd call your guide and ask him/her.

 

[Pluto 2]

do not give it to your friend (at least dont let disney know) disney will use their ROFR and get the points back for free.

 

[poohbear7]

We asked Disney that question when we wanted to buy points for my daughter. We were told we had to buy a 150 point contract if we wanted the add on in her name.

 

[T.E. Yeary]

You could do it through resale. It would have to go through ROFR.

I do have one BIG question.

Who would be responsible for the annual dues?


Tom

 

[snowbunny]

I think poohbear answered the question...although I still think the buyer can put anyone's name on the deed they want.
Tom - the recipient would be responsible for dues...good reminder and reason not to make it a surprise gift.
I'd rather not buy 25 points through resale - even at the discounted price of $80 or so per point, $350 in closing costs brings it up to $94 per point

 

[Dean]

You must title any add ons through DVC the same as your original contract, assuming it's less than 150 points. If it's 150 or more, it appears you can alter the title registration but it wouldn't be attached to your original contract. You could do it resale but the cost might be too much given the closing costs and the like. Here's what I'd look into. Call your sales guide and discuss with them. Ask if you can buy the number of points you want (min 25) and put in your name AND the other people as well. They will almost certainly say no. Then ask if you can buy the add on and get a waiver of ROFR to give it to the other people. They will probably say they can't do it that way. Then ask what their policy is on gifts and ROFR, if you get an answer that may help you, make sure you get it in writing. If you get the ROFR, you can change the deed listing for as little as the recording costs, less than $50 plus the costs of the points. DVC will give you an automatic waiver of ROFR for immediate relatives but I don't know exactly where they draw the line.

 

[vascubaguy]

You could always buy the add-on, sell it to the other party, but give them the money to pay you for it.

 

[snowbunny]

You could always buy the add-on, sell it to the other party, but give them the money to pay you for it.

Now that's creative - just set the price appropriately so there is no trouble with ROFR!
Obviously I have to go back and read the fine print especially given Dean's good points, but the DVC marketing info makes a big deal of DVC being deeded real estate that can be sold, willed, and I believe - gifted - just as any other real estate. But if ROFR applies to a gift, then as Pluto said, the company can ROFR it at $0? That makes no sense to me, but I'm sure Disney has covered every angle.

 

[Cruelladeville]

I hold title to a 50 pt add-on that belongs to DD. She paid for it, but when I pay the dues, I use the points, when she pays the dues, she uses the points. You would really have to be trusting to work things this way, though. At one point we thought we would just "give" her the contract, but found that we would have to go thru a closing to change the name on the contract, and that was about $350, so we left things as they are.

 

[Dean]

Now that's creative - just set the price appropriately so there is no trouble with ROFR!
Obviously I have to go back and read the fine print especially given Dean's good points, but the DVC marketing info makes a big deal of DVC being deeded real estate that can be sold, willed, and I believe - gifted - just as any other real estate. But if ROFR applies to a gift, then as Pluto said, the company can ROFR it at $0? That makes no sense to me, but I'm sure Disney has covered every angle.

It's also illegal.

 

[InstImpres]

the DVC marketing info makes a big deal of DVC being deeded real estate that can be sold, willed, and I believe - gifted - just as any other real estate. But if ROFR applies to a gift, then as Pluto said, the company can ROFR it at $0? That makes no sense to me, but I'm sure Disney has covered every angle.

ROFR is the process so that DVD knows that a title is "in play". I have spoken with them twice, once for divorce and once for gifting purposes. You have to go through the process with a letter explaining and than it is a "rubber stamp yes". They can not step in for those cases.

 

[Dean]

They can not step in for those cases.

They can but may not chose to. DVC should be able to state where they draw the line for automatic ROFR.

 

[snowbunny]

Now that's creative

It's also illegal.

Yes I believe that is known as collusion

 

[Cruelladeville]

 

[snowbunny]

I hold title to a 50 pt add-on that belongs to DD..... At one point we thought we would just "give" her the contract, but found that we would have to go thru a closing to change the name on the contract, and that was about $350, so we left things as they are.

There must be a way to do a private sale for less than $350? That seems like a standard realtor fee...

 

[Dean]

There must be a way to do a private sale for less than $350? That seems like a standard realtor fee...

You can do a private sale for as little the recording fees (less than $50), I've sold one this way. If you need deed prep, expect to pay $100 for that. There are company's that would do the entire thing for around $250 but in some cases you'd have to get the ROFR yourself, quite easy to do.

 

[JimC]

Would it be a bit easier to give the friend cash and let them buy the points themselves?

 

[snowbunny]

Would it be a bit easier to give the friend cash and let them buy the points themselves?

Yes but - they're not members so they'd have to go the resale route to buy a small contract, which as discussed would end up costing more per point than direct from Disney.

Dean - how does one go about recording the deed oneself? Also, the title search/prep aspect of realtor closing costs seems useless to me in this situation of a small cash sale on the order of $2k.
My attorney explained what happened to one client who did not have proper title to his home - pretty scary - but if we buy a contract from Disney and then sell it to a friend at cost, where does the title business come in? Thanks

 

[T.E. Yeary]

Closing Costs REDUCED on smaller point DVC Resale packages!
After much discussion between The Timeshare Store, Inc. and Timeshare Closing Services, Inc., we came to an agreement and wish to announce that the following prices will take effect as of Thursday July 28, 2005 for those purchasing from The Timeshare Store, Inc. (These prices are NOT retroactive, so please do not ask about it.)

These prices DO include the necessary title search and estopple information from Disney Vacation Club.

25pts to 50pts Closing Costs = $262 without Title Insurance Policy - additional $60 for Title Insurance Policy

51pts to 75pts Closing Costs = $299 without Title Insurance Policy - additional $60 for Title Insurance Policy

76pts to 100pts Closing Costs = $337 without Title Insurance Policy- additional $60 for Title Insurance Policy

DISboard Members, pat yourself on the back, we heard your voices!

The Timeshare Store, Inc., hopes this will be helpful when you make your smaller point package decision!

Thomas E. Yeary (Tom)
Owner/Broker