Can I trade my contract?

dbkelly

Mouseketeer
Joined
Jun 14, 2001
Messages
298
We are new members and we are slowly trying to stay at all the DVC resorts. If we like another resort, can dvc members trade contracts? I understand there would be some legal fees involved, but we could split the cost which would be cheaper then selling and buying a new contract.

Also, can I sell or trade just some of my points or must it be for the entire amount?

Just a thought.

D. B. Kelly
 
First, Welcome Home!

can I sell or trade just some of my points or must it be for the entire amount?

If you sell your contract it must be the whole thing. If you rent or trade points, you can do any amount of your contract.

On your first questions, I suppose you could trade contracts with someone but I think you will find that most of us have purchased where we want to stay and I think it might be hard to find someone to switch contracts with.

HBC
 
Trading contracts is not that easy. Recall that you buy an actual real estate interest (the points simply represent that interest). To trade contracts with another requires you go through all the usual closing steps for a real estate transaction including paying applicable taxes, getting title insurance, recording deeds, etc. Remember all those closing costs that Disney paid; they add up to about $450 to $500 and to accomplish a trade of contracts you would need to pay that amount for each contract.
 
Fees would vary between around $300 and about $900 total to do this. You might be able to get it down to around $100 if you prepared the deeds yourself but that's a big risk for something like this that costs this much.

Finding someone that wants to trade with you in this situation could be difficult. Now if you wanted to trade and pay all the fees, that might be another matter. Then if you do find someone interested in trading contracts, they would most likely not be exactly the same number of points or have the same amount remaining for the year. You could adjust by an agreed upon value for the points per year difference, say $65 per point. You could also adjust for the difference in remaining points by around $10 pp, like you were renting them.

I had this in the works and it fell through because the other party became unsure of his job with the 9/11 issues. It was 232 OKW points (mine) for his contract (?200). We were adjusting the 32 points at $65 pp in my favor and then his had more availabilitly of points and were adjusting those at $10 pp in his favor. He was paying all fees for both contracts. It came out almost a wash, at least from my point. He was only going to have the closing costs to pay.
 

Dean,

Thank you for the information. It doesn't sound like it is easy to do, but it is nice to know that the possibility is there. Being in the business world, I thought it was possible. I understand how you accounted for the difference in points and all of it makes perfect sense from a business point of view. OKW works great for us right now, but it may not when my children are older and looking for more activities.

D.B. Kelly
 



















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