Friend wants me to buy her out of her DVC contract

[LisaL]

We purchased DVC back in 1999 and sold in 2010 after giving up hope that we would ever get pregnant. In 2011, a miracle happened and we now want very much to share WDW with our little boy just like we always dreamed of doing. But, we decided against another purchase due to the cost.

Today, my friend asked me to buy her out of her contract by paying off her balance. I'm trying to figure out how in the world to do that and get Disney to approve it. Thoughts, ideas, input are all greatly appreciated.

 

[suebeelin]

I would do it in a heartbeat! How low, however, would the per point cost be, and for which property?

if your friend has NO 2016/2017 points left (borrowed all of it), there might be a shot at buying the contract straight out... The mouse is less likely to snap up a contract with no points until 2018....

It's still a risk, esp if the deal is almost too good to be true.

Another thought is to become co-owners, paying a fee (I think it's around $500 to change names on the title) to add your name on her contract, while assuming her payments for the time being. You can then revise the contract after some point in the future and have her name/ownership removed (another appx $500 to change the title from what I understand).

That could prove tricky for a number of reasons, including if she gets into financial trouble, etc.- in other words, it would become a joint asset for the time being. Not sure if this would be considered ethical. Maybe if you kept the ownership joint for a period of time (1-2yrs), you at least co-owned the asset, so transferring title would not be considered avoiding the rofr process.

Or you can use her points in the meantime, paying for her fees and payments until it looks like the mouse slows down on the rofr activity.... Then buy it out right.

Good luck and congrats on the little one!! I'm assuming little one is 5yrs old and ready to enjoy Disney! That's a fun age!

 

[disneynutz]

You would need to go through the same process as if buying through a broker. Disney still has ROFR, you need a contract, your friend needs to pay off her loan and it will still take months to close.

Bill

 

[kniquy]

People add names to deeds all the time and those individuals don't have to live in the same house hold. I wonder if you went that route if you would later be able to remove her name from the contract with her being the original owner. I guess if you are on the deed then you are all equal owners and would then have to all sign documents to then change the deed in a couple of years.

I wonder if you could talk to a title agency to see how the transfer could take place. There must be people who give memberships to their children all the time.

I think your friend could do a little leg work with even contacting Disney to see how to add someone onto a deed and start there.

 

[JimMIA]

IMO, the only way to accurately evaluate her offer is to compare it to what you can buy a contract for on the resale market. You have to anyway because as Bill said, you have to be in the ROFR ballpark or Disney will take it (which would be okay for your friend, but you'd have to start over).

If your friend financed, they probably bought direct and may owe a LOT more than the contract is worth on the resale market. If that's the case, they would have to pay IN at closing to pay off their loan. They may not realize that, and they may or may not be able to do it.

Research exactly what their situation is, and then compare it to other resales -- and don't forget to evaluate whether their contract is really the number of points you want, at a resort you want to own, with annual MFs that are what you want. If it all works out, you can help a friend, but don't take a hit yourself to bail them out...unless it's a REALLY close friend.

 

[JimMIA]

People add names to deeds all the time and those individuals don't have to live in the same house hold. I wonder if you went that route if you would later be able to remove her name from the contract with her being the original owner. I guess if you are on the deed then you are all equal owners and would then have to all sign documents to then change the deed in a couple of years.

I wouldn't do this. It would not solve your friend's problem, except that you might pay the dues on their contract for a while, and it makes you totally responsible for their DVC problem, and possibly for other issues you don't even know about.

If you want to buy, buy.

 

[_auroraborealis_]

I would also ask, is her DVC even for a resort you'd want to own? Could you buy the same points resale for less than her amount owed?

 

[jerseyduke]

Find out Price per point.

If you buy it you will have to go through ROFR; and my guess is "paying off the balance" would not be enough to pass ROFR.

It is probably illegal, but if it were me......

I would buy the contract at a solid price, outright, and one that would pass ROFR.

I would then expect my friend to accidentally leave the amount I over payed in cash on my table the next time they visited.

Deed is in your name....ROFR passed....

 

[kniquy]

It is probably illegal, but if it were me......

I would buy the contract at a solid price, outright, and one that would pass ROFR.

I would then expect my friend to accidentally leave the amount I over payed in cash on my table the next time they visited.

Deed is in your name....ROFR passed....

Why is it that there are plenty of things in this world where we can make a deal between family members or close friends on items of substantial value - (ie selling a house, a car, camper, boat, etc) and not have to worry about someone else (disney) swooping in and taking it from us. I understand that it is part of the timeshare world and that is how they operate - not just Disney. I think if they are close friends then they can hopefully handle the deal which makes it a fair and agreeable deal for both parties.

 

[brinkley07]

Any monetary exchanges between friends or family can be tough at times, or problems sometimes appear later down the road. If you go through with the transaction I would make sure that you have a contract in place to protect both of you. Even if you were to follow some of the suggestions above, place any scenario in the contract instead of relying on the friendship. Good luck!

 

[miTnosnhoJ]

We purchased DVC back in 1999 and sold in 2010 after giving up hope that we would ever get pregnant. In 2011, a miracle happened and we now want very much to share WDW with our little boy just like we always dreamed of doing. But, we decided against another purchase due to the cost.

Today, my friend asked me to buy her out of her contract by paying off her balance. I'm trying to figure out how in the world to do that and get Disney to approve it. Thoughts, ideas, input are all greatly appreciated.

I would have your friend gift the property to you at $0, and then use a closing service that is familiar with DVC. You would have to pay off the remaining balance at closing, but then it is yours and Disney should let ROFR pass since it is a gift. But I am not a lawyer and I don't play one on TV.

If you want to finance it yourself, you could also do that at closing.

 

[msjprincess]

Find out Price per point.

If you buy it you will have to go through ROFR; and my guess is "paying off the balance" would not be enough to pass ROFR.

It is probably illegal, but if it were me......

I would buy the contract at a solid price, outright, and one that would pass ROFR.

I would then expect my friend to accidentally leave the amount I over payed in cash on my table the next time they visited.

Deed is in your name....ROFR passed....

I was thinking the same thing.

 

[supersnoop]

I would have your friend gift the property to you at $0, and then use a closing service that is familiar with DVC. You would have to pay off the remaining balance at closing, but then it is yours and Disney should let ROFR pass since it is a gift. But I am not a lawyer and I don't play one on TV.

If you want to finance it yourself, you could also do that at closing.

If you pay off the loan, then it's not a gift, and it's not $0. That's real money changing hands. Paying someone else's liability still counts as compensation.

 

[disneynutz]

Disney isn't dumb, they know all of the angles and what they will accept in a contract and what they won't.

Bill

 

[jerseyduke]

Disney isn't dumb, they know all of the angles and what they will accept in a contract and what they won't.

Bill

Exactly true, which is why this should not be overly complicated.

It is not like the old "I will sell you this lucky pencil for 800.00...oh yea, and I will throw in these concert tickets for free" is going to fly.

ROFR is really designed to do a few things:
1. Let Disney get contracts back to resell them/fill wait lists
2. To control the resale market, and indirectly, the price they can charge for direct sales. (No one is going to buy the new properties if you can pick up OWK for 30 bucks a point.)
3. It has been in effect since the beginning of DVC, probably just in case something popped up Disney did not foresee.

Transactions involving DVC contracts occurring between friends are probably so rare, but, they are still transactions nonetheless, and have to go through "the process". I really do not think Disney was targeting this.

That being said, IF, it is a contract you want based on resort, number of points, UY, price etc, the submit it to Disney as being a transaction 10$ per point over the going rate.

And if you do not want to deal with the cash, pay your friend by check. Just use 2 checks.
1. In the amount they agreed to sell it to you for,
2. The difference between that amount, and what you submitted to Disney as the proposed offer. Post date that check for January 4, 2184.



It is not like the Disney police are going to come after you. I doubt they give a **** if 1 in 500 contract sales "skirts the system".

 

[disneylovinfamilyof6]

Find out Price per point.

If you buy it you will have to go through ROFR; and my guess is "paying off the balance" would not be enough to pass ROFR.

It is probably illegal, but if it were me......

I would buy the contract at a solid price, outright, and one that would pass ROFR.

I would then expect my friend to accidentally leave the amount I over payed in cash on my table the next time they visited.

Deed is in your name....ROFR passed....

My husband said the same thing.

 

[KAT4DISNEY]

Any monetary exchanges between friends or family can be tough at times, or problems sometimes appear later down the road. If you go through with the transaction I would make sure that you have a contract in place to protect both of you. Even if you were to follow some of the suggestions above, place any scenario in the contract instead of relying on the friendship. Good luck!

I agree.

And though not knowing what paying off the loan actually means in a price per point does your friend know what points are reselling for now? You'd hate to have them realize that they actually gifted you a few thousand dollars if comparing to what they could have gotten by selling when they thought they were being neutral in their offer for you to pay off the contract.

 

[malba2366]

I would do it in a heartbeat! How low, however, would the per point cost be, and for which property?

if your friend has NO 2016/2017 points left (borrowed all of it), there might be a shot at buying the contract straight out... The mouse is less likely to snap up a contract with no points until 2018....

I dunno if I would agree with this...I put in a somewhat low offer on a BLT contract that was stripped until 2018 (could not close until October). I offered $99 a point, and Disney took it. If you really want the contract I wouldn't try putting a low price per point amount in the contract.

The way I would do this is put a normal price per point in the contract, and then have your friend refund you some of the money after closing...this approach all depends on how well you trust this friend.

 

[suebeelin]

Sorry your contract was taken. The mouse has been very active in the rofr department lately ;(

 

[DVCcurious]

We purchased DVC back in 1999 and sold in 2010 after giving up hope that we would ever get pregnant. In 2011, a miracle happened and we now want very much to share WDW with our little boy just like we always dreamed of doing.

Congrats, kindred spirit! We got married in 1999 and couldn't get pregnant so we adopted a girl from Seoul in May 2011. Then, immediately after we got home from Korea we got pregnant. Our boy was born in Feb 2012.

I share your joy upon finding out you were pregnant. I think infertility isn't something people can really relate to unless they've struggled with it.