Can you gift a contract?

[pearlieq]

Can you give someone one of your DVC contracts as a gift? How would one go about that? What kinds of fees are involved?

My very dearest friend is having her first child and DH and I were considering gifting one of our contracts to them as a baby gift along with an account for the maintenance fees.

Has anyone done this?

 

[CarolAnnC]

Can you give someone one of your DVC contracts as a gift? How would one go about that? What kinds of fees are involved?

My very dearest friend is having her first child and DH and I were considering gifting one of our contracts to them as a baby gift along with an account for the maintenance fees.

Has anyone done this?

I don't believe this is possible as it is a real estate interest (timeshare) that you would actually be "selling" to her. Disney retains Right of First Refusal, so they would snap it up if you were selling it for less than market value, or what they deem to be desirable to them.

The only time I hear of them waiving the ROFR is if it is a transfer to an immediate family member, or close relative, for example. Again, that is their choice, they are not bound to waive ROFR at all...

 

[stefanospops]

I personally don't know, but I think that is worth asking a guide if you already have one. I can't see why it would be an issue. I would imagine that you could buy it in their name and the MFs you would manage directly with the person you are buying for. Of if that doesn't work you could tell your friend of the gift and the obligation you are willing to take on, then have them make the call and you just provide them the funds.

BTW - that is wonderfully throughtful and generous of you. Your friends are lucky.

 

[stefanospops]

I personally don't know, but I think that is worth asking a guide if you already have one. I can't see why it would be an issue. I would imagine that you could buy it in their name and the MFs you would manage directly with the person you are buying for. Of if that doesn't work you could tell your friend of the gift and the obligation you are willing to take on, then have them make the call and you just provide them the funds.

BTW - that is wonderfully throughtful and generous of you. Your friends are lucky.

I misread - I thought you would buy them a contract, not gift them one of yours. Then I defer to the pp. It likely would be an issue.

 

[Sandisw]

The only way that you might be able to do it is by making them a joint owner with you.

I have read that some people have added a child, spouse, to their contract after the fact and I would not see why you could not do it as well.

Not exactly the same as your original thought, but you could then take care of the MF's for them, just as you planned.

 

[Chuck S]

I think you can give it to them, just as you can transfer it to another family member or leave it to someone in your estate. You'd have to get a ROFR waiver from Disney, then have a new deed drawn up and recorded.

It would have to be given to the parents, not the child.

The account for the maintenance fees, of course, would be separate from DVC.

Or you could set up a trust for the child and transfer the DVC deed and monetary gift to the trust.

 

[sdlong329]

I agree with Chuck S.

 

[Dean]

I think you can give it to them, just as you can transfer it to another family member or leave it to someone in your estate. You'd have to get a ROFR waiver from Disney, then have a new deed drawn up and recorded.

It would have to be given to the parents, not the child.

The account for the maintenance fees, of course, would be separate from DVC.

Or you could set up a trust for the child and transfer the DVC deed and monetary gift to the trust.

Chuck is correct, you could give anyone an entire contract if you wanted. Whether you gave it to them or added their names to yours, it becomes a totally separate contract not directly combinable with any other contracts you on. The process is the same as changing the deed to add a spouse or child. File the transfer form to get ROFR, record new deed with ROFR letter, send final transfer form with copy of deed to DVC.

 

[scot@dvcstore]

Very nice thought to gift the property. I believe as long as you are gifting to a "relative" it takes nothing more than a Quit Claim Deed. At the Timeshare Store, Inc., we use Magic Vacation Title for all of our title work. Nancy & Brenda do a tremendous job on DVC title work. They can be reached at 407-488-1330. Good luck!

 

[Jason@dvcstore]

Very nice thought to gift the property. I believe as long as you are gifting to a "relative" it takes nothing more than a Quit Claim Deed. At the Timeshare Store, Inc., we use Magic Vacation Title for all of our title work. Nancy & Brenda do a tremendous job on DVC title work. They can be reached at 407-488-1330. Good luck!

Their website is:

http://mvtservice.com/dnn/***/


Jason

 

[DVC_Corrys]

My birthday is coming up!

 

[Cruelladeville]

Yes, you can gift a contract, but the transfer will cost about $350 for closing fees. We gave a contract to our 30 year old daughter, and we had to fill out a ROFR waiver, which turned out to be the most difficult part of the whole process. Disney accounting(I think) finally called me, and walked me thru what the waiver had to say. After that, Disney sent me a letter saying that ROFR was waived, but then you need a closing to make sure your contract is transferred to the new owners. Also, the contract must be completely paid up, and dues paid for the current year before they waive ROFR.

 

[Dean]

Yes, you can gift a contract, but the transfer will cost about $350 for closing fees. We gave a contract to our 30 year old daughter, and we had to fill out a ROFR waiver, which turned out to be the most difficult part of the whole process. Disney accounting(I think) finally called me, and walked me thru what the waiver had to say. After that, Disney sent me a letter saying that ROFR was waived, but then you need a closing to make sure your contract is transferred to the new owners. Also, the contract must be completely paid up, and dues paid for the current year before they waive ROFR.

The transfer can cost that much or more but doesn't have to.