Doing an add-on for someone else

[kkmauch]

If I were to buy a 50 point add-on to my existing 150 points and wanted to turn around and have a family member take ownership of those points (to avoid having to buy 150 straight out), how long would that take and what is the process? Do all the points get all jumbled and confusing? I have borrowed about 25 points already from 2006 and I have plans all set for the rest of my points. I don't want everything to get all mixed up. Is this a quick and easy process? Does anyone strongly advise against this plan?

 

[CarolMN]

Assume you are talking about buying the add on directly from Disney. The use year will be the same as your original contract. That may or may not be the best use year for your family member.

You would have to sell the 50 point contract to your family member. That entails passing Disney's ROFR as well as closing costs and some hassle for you. If you purchase with Disney financing, you cannot sell the add on without paying off the loan first.

Depending on how long it takes to transfer the ownership, yes, your add on points could get "mixed up" with any reservations you may make with your original points - especially if the home resort for the add on matches your original home resort. All existing reservations get cancelled when a sale is made.

My advice is to just have your family member buy via resale and you stay out of the transaction (except as an advisor). He/She can tell the brokers what they are looking for and proceed from there.

Best wishes -

 

[Good Ol Gal]

I agree with CarolMN.. have them go through resale and tell them they only want a 50 pt contract.

 

[msdis]

Why couldn't you deed them in your's and their names and then do a quit claim on your rights a little down the road? No fee except a recording fee.

 

[shellbelle1971]

We considered doing exactly what you are proposing with one of our family members. Our Guide suggested we do it exactly as msdis outlined with a quitclaim deed.

 

[greenban]

We considered doing exactly what you are proposing with one of our family members. Our Guide suggested we do it exactly as msdis outlined with a quitclaim deed.

As long as everyone stays happy! No divorces, No fammily fueds, it should work, but is the risk really worth this macavellian (I'm from NJ) activity?

Good Luck!

-Tony

 

[Dean]

Why couldn't you deed them in your's and their names and then do a quit claim on your rights a little down the road? No fee except a recording fee.

You still have to pass ROFR and record the ROFR waiver as well as the deed. But this is really easy in this situation and not nearly as much a hassle as some seem to think. And it should be easy to do without getting the points mixed up in any problematic way. What you can't do in this situation is buy an add on size and title in your and their name. You could do that if it was 150 or more points but then it'd be a separate contract. The only flexibility is that I've heard of once instance where someone titled the add on differently. And while it was not a 150 pt contract, it was multiple add ons totaling 150 pts. Seems like it was two 75 pt contracts.

I think this is the perfect way to handle the situation as long as the currently member is confident the other person will carry though OR wouldn't mind ending up with the contract IF there were a problem.

 

[diznyfanatic]

Does a quit claim deed actually remove the original purchaser from the deed? How does it effect credit reporting?

I can see this as a problem if it is going to hurt the OP attempt to finance something else and their debt level is increased because of the add-on and the quit claim doesn't remove it from their credit report.

 

[msdis]

Does a quit claim deed actually remove the original purchaser from the deed? How does it effect credit reporting?

I can see this as a problem if it is going to hurt the OP attempt to finance something else and their debt level is increased because of the add-on and the quit claim doesn't remove it from their credit report.

Yes it does. It has no effect on cb reporting. Cb reporting is debt related only. It does not show assets.



The only issue would be new money. If there is an existing debt on the property any and all parties can remain, the new owner can refi in just their name, or both parties can agree to pay the costs. The only real issue from a lending standpoint is if person "A" was not on the deed and person "B" had the loan. You cannot collateralize that which you do not own and from a lending standpoint you always want to have collateral.

 

[diznyfanatic]

Yes it does. It has no effect on cb reporting. Cb reporting is debt related only. It does not show assets.



The only issue would be new money. If there is an existing debt on the property any and all parties can remain, the new owner can refi in just their name, or both parties can agree to pay the costs. The only real issue from a lending standpoint is if person "A" was not on the deed and person "B" had the loan. You cannot collateralize that which you do not own and from a lending standpoint you always want to have collateral.

Thanks for the info. I wasn't sure if the OP was paying cash for the add-on or financing. Even if paying cash for a DVC property, doesn't Disney report the annual maitenence fees as a debt to credit bureaus?

 

[kkmauch]

Thanks for all of your input. We'll look at all the options and then I am sure something will work out.

 

[msdis]

Even if paying cash for a DVC property, doesn't Disney report the annual maitenence fees as a debt to credit bureaus?

I don't believe so. In fact I've seen posts here where they do not even report the mortgage debt.