Deed

[asunnyday]

I read on the welcome board that if you purchase a DVC it can not be deeded over. Is that true? Can you leave it for your children?

 

[Tinkerdreams]

Yes you can leave it to your children.

 

[Granny]

DVC is a Right to Use contract for a specified period of time. It can be willed, or sold to others (hence the healthy resale market).

Of course, you'd also be leaving your children the dues payments, but they could always sell the contract or "rent points" if they don't want to go themselves.

 

[drusba]

You receive a deed and you can pass your interest to another by deed. However, if you do so by a sale to a buyer rather than a gift, it will be subject to Disney's right of first refusal to step in and accept the terms the buyer agreed to and become the buyer. You can also leave your interest to heirs, including children, but leaving to your children does create different issues you may need to deal with. For example, the interest you have (if you have a single contract) is not divisible and if you leave it to several children they will all become common owners of the whole interest, each jointly liable for any dues going forward, and thus they will have to agree on how to use the DVC contract, and one could actually force a sale of the interest to get the cash rather than the vacations if he chose to do so. In other words, you need to determine how you are actually going to leave to your children, and perhaps even to which ones, if you have any concern over whether there could be a dispute among them.

 

[Kurby]

just a question (not that we plan on selling) but does Disney have the ROF if you do a private sale? for instance if I sold to my cousin and didn't go through a broker?

 

[Chuck S]

just a question (not that we plan on selling) but does Disney have the ROF if you do a private sale? for instance if I sold to my cousin and didn't go through a broker?

Yes, they have ROFR on all contracts, private or broker. In fact, even if you give your membership to someone, you will have to obtain a ROFR waiver.

 

[Kurby]

good to know - not that we are selling (i plan on dying at WDW LOL) but i'm sure others would be glad to read that.

 

[drusba]

Disney gives those waivers of rights of first refusal as a matter of course on gifts since legally it has no right of first refusal to exercise unless it is a sale (private or otherwise). It mainly wants to be informed of the transfer to assure itself it is not a sale and at the same time having that waiver assures that Disney does not in the future contend it was actually a sale to which its right applied.