getting a contract split

[dadio]

howdy! and tia!

I have read all the info on asking to get your contract split.....what no-one has stated is at what point would one do that? do you do that when you submit your offer? once it is at rofr? after?
also does it affect your closing? ie costs? since you are essentially closing on say 3-100 pt contracts as opposed to 1-300 pt contract?

I know I will get some good answers here....

 

[rlovew]

You should ask Disney to split your contract before you finalize things with them- it sounds like you are going resale and therefore can't split a contract- you can only do so with a direct purchase. If you are doing a direct purchase they need to have split the contract before you finalize the paperwork because you sign for each set individually.

 

[dadio]

ok wasn't sure about the whole split thing...
yes resale......300 pts ssr

 

[jlewisinsyr]

ok wasn't sure about the whole split thing...
yes resale......300 pts ssr

Then you cannot split the contract, it is all or nothing with a resale.

 

[Sandisw]

Only when you buy with Disney can you ask to have your points put in to multiple contracts. Once a contract has closed, it can not be changed.

So, with resale, what you see is what you get. If you are concerned about having a big contract, then you would be better off buying smaller contracts from the start. It will add to the cost a bit, since you could possibly have to end up with additional closing costs (unless you negotiate those with the seller).

But, if smaller contracts is important to you, it might be worth it to do it this way.

Good luck!

 

[dadio]

what if you were to add on then and say add 150 pts to a 300 pt contract to give you 450 could you then @ that point get it cut into 3-150 pt contracts? adding that the names would be same, UY same, AND you added on thru disney?

 

[TheRustyScupper]

what if you were to add on then and say add 150 pts to a 300 pt contract to give you 450 could you then @ that point get it cut into 3-150 pt contracts?

Only when you buy with Disney can you ask to have your points put in to multiple contracts. Once a contract has closed, it can not be changed.

1) Kind of answers this question, too.
2) Once a contract is finalized, it can never be split.
3) This has created problems for folks with huge point contracts (ie. 300 or 400 point contacts).
4) Makes it REALLY tough for future resales.
5) Really tough.

 

[chalee94]

what if you were to add on then and say add 150 pts to a 300 pt contract to give you 450 could you then @ that point get it cut into 3-150 pt contracts? adding that the names would be same, UY same, AND you added on thru disney?

nope - if you buy a 300 pt resale, that is what it will remain.

(if DVC were to ROFR that 300 pt resale - then they could split it up when they resell it...but that won't help you.)

if you add-on 150 pts, you can ask that the add-on be split into 3 - 50 pt contracts...but that's it.

 

[hellerjw]

As a PP mentioned, it can be very tough to resale a larger contract (300+ pts) which is why many members suggest you split up points bought direct into smaller contracts (100 pts or less). If you wanted 300 pts, the idea would be to split them into (3) 100pt contracts. As far as the DVC system is concerned, those 3 contracts will share the same UY and membership number and it will allow you to combine all the points for making reservations.

This way if you ever need to sell off part of your ownership you could do so without affecting the other points. The smaller contracts also tend to sell more quickly and at higher prices than larger ones. Its pretty rare to find a 25-75 pt contract on the resale market for one of the older resorts so when they come along they get snatched up quickly.

To give you an example we recently scaled back our AKV ownership. We had (1) 200 pt contract and (2) 100 point contracts. The 100 pt contracts sold within a week of listing them, the 200 pt contract took almost 3 months and one buyer had to back out due to a financing issue. Its just easier to sell the smaller contracts.

Obviously this doesn't help you if you are already buying a resale contract as those points are fixed and can't be broken up into smaller contracts. But hopefully you have a better understanding now of why people recommend smaller contracts to begin with.

 

[dadio]

gotcha!

we'll we jumped in! placed an offer on a 300 pt contract....I could feasibly see us going 2x, easy, a yr.....7-8 days poss... flexible schedules......plus we were in Hawaii in nov and did a luau right across the street from disneys place there...how sweet is that?
so I really don't think the pts are gonna go to waste..lol!

 

[Iceman13]

Does splitting your points contract into smaller contracts increase the cost (e.g. closing costs)?

Does it impact the "discount" you get per point (i.e. $10 off when you by 200+ points?

 

[Sandisw]

Does splitting your points contract into smaller contracts increase the cost (e.g. closing costs)?

Does it impact the "discount" you get per point (i.e. $10 off when you by 200+ points?

It does not increase your closing costs. Essentially, what Disney does is make one of the contracts your first contract and treat the others as add ons. You are simply doing it all at one time.

As far as incentives, it has been reported that the discount is based on the total so you should still qualify for whatever that is.

 

[Iceman13]

It does not increase your closing costs. Essentially, what Disney does is make one of the contracts your first contract and treat the others as add ons. You are simply doing it all at one time.

As far as incentives, it has been reported that the discount is based on the total so you should still qualify for whatever that is.

Thank you for the information I will pursue the split.

 

[patdotson]

I bought several smaller contracts instead of one large one. I know I am going to sell at some point and read alot of entires that you can sell quciker and for more money.

 

[Iceman13]

I purchased a contract at BLT and my DVC guide actually suggested a split contract before I even brought it up. THe guide stated that he always recommends the split contract for purchases of 200 points or more.

 

[adminjedi]

I purchased a contract at BLT and my DVC guide actually suggested a split contract before I even brought it up. THe guide stated that he always recommends the split contract for purchases of 200 points or more.

That is a good and thoughtful guide - looking out for your best interests.