Give away DVC membership

[kid-at-heart]

If I want to turn my DVC membership and points over to a sibling (not sell it to them but give it to them – no money exchanged), can I?

 

[rsinj]

.

 

[Kurby]

they kid at heart is still bound to pay the dues

i know you can will it on to someone but not sure about giving it to someone without passing the ror because then most people would "give" their points away and not tell disney how much they are getting for the true sale.

 

[drusba]

As long as you do not have an outstanding mortgage, you can give it to another. You have to go though the process of closing and transferring by deed and give notice to DVC. DVC does not have a right of first refusal as to a gift but you still need to go through the same process and it will sign off on it as long as there is no outstanding debt -- note if you are on monthly dues payments by withdrawal from your account, the recipient (or you) will likely have to pay off the dues for the year at time of closing because the dues for the entire year are considered an outstanding debt that must be paid at time of closing.

 

[kid-at-heart]

Thank you everyone for your replies.

 

[Duckfan-in-Chicago]

As long as you do not have an outstanding mortgage, you can give it to another. You have to go though the process of closing and transferring by deed and give notice to DVC. DVC does not have a right of first refusal as to a gift but you still need to go through the same process and it will sign off on it as long as there is no outstanding debt -- note if you are on monthly dues payments by withdrawal from your account, the recipient (or you) will likely have to pay off the dues for the year at time of closing because the dues for the entire year are considered an outstanding debt that must be paid at time of closing.

I think what they're signing off on is their right of first refusal. I have done this and it was my understanding that it had to go through Disney because of the ROFR but Disney wouldn't deny it for a gift to a family member-not that they can't. They also know that they aren't going to get it anyway, so why piss people off? But they could force the gifter to declare the value of the transfer, which they'd then have the right to match. This could cause tax issues if the contract is worth more than what you can gift tax free ($12,000 a year, I believe).

My contract was handled by my lawyer a few years back so I could be wrong.

 

[rsimon]

As long as you do not have an outstanding mortgage, you can give it to another. You have to go though the process of closing and transferring by deed and give notice to DVC. DVC does not have a right of first refusal as to a gift but you still need to go through the same process and it will sign off on it as long as there is no outstanding debt -- note if you are on monthly dues payments by withdrawal from your account, the recipient (or you) will likely have to pay off the dues for the year at time of closing because the dues for the entire year are considered an outstanding debt that must be paid at time of closing.

It is my understanding that they are not extending any credit to you on the monthly payment of dues.. In fact, it is an escrow account set up that pays the dues for the following year. So, if you have paid montly for the first 6 months of the year, you have roughly 1/2 your dues in escrow for the following year. That means if you are "giving" it away, those dues would come back to you and the new owner would be responsible for paying the dues at the first of the year.

This is based on how I understand it anyhow.. When you first buy in, you have to pay a prorated amount of dues for the current year you are in as well as pay montly into the escrow for the next year.

I'll know more for sure when our bill comes for MF on the points we just bought..

 

[Caskbill]

It is my understanding that they are not extending any credit to you on the monthly payment of dues.. In fact, it is an escrow account set up that pays the dues for the following year. So, if you have paid montly for the first 6 months of the year, you have roughly 1/2 your dues in escrow for the following year. That means if you are "giving" it away, those dues would come back to you and the new owner would be responsible for paying the dues at the first of the year.

This is based on how I understand it anyhow.. When you first buy in, you have to pay a prorated amount of dues for the current year you are in as well as pay montly into the escrow for the next year.

I'll know more for sure when our bill comes for MF on the points we just bought..

Dues are not an escrow account for the following calendar year. Dues are for the current calendar year, they just let you pay it off a month at a time.

If someone is currently paying monthly, I would think they would allow the new buyer to just continue the monthly payments. That would be the same way Disney does it themselves....Pro-rating the dues.

The seller would obviously have to have all dues paid up through the sale date, and the new owner after that.

Also, as stated, it isn't that they can't use ROFR. They can, but will waive that in specific cases.

 

[drusba]

I think what they're signing off on is their right of first refusal. I have done this and it was my understanding that it had to go through Disney because of the ROFR but Disney wouldn't deny it for a gift to a family member-not that they can't. They also know that they aren't going to get it anyway, so why piss people off? But they could force the gifter to declare the value of the transfer, which they'd then have the right to match. This could cause tax issues if the contract is worth more than what you can gift tax free ($12,000 a year, I believe).
My contract was handled by my lawyer a few years back so I could be wrong.

Disney's right of first refusal applies to a "sale" not a gift. It goes through the process of signing off on right of first refusal for a gift because it gets to assure it is a gift (and that there is no side deal going on where money is being paid for the property) and to assure any outstanding debt is paid at closing (including any remaining dues for the year). Disney cannot force a gift to be valued so it can then exercise ROFR. Moreover, you want that perfunctory sign off on ROFR with a gift. The public records where deeds and other needed documents are recorded will show that you transfered to another but will not show it is a gift. Later, if a sale is attempted by the person to whom you made a gift, a title company search will show a transfer was made and that Disney has a ROFR right. If the waiver of ROFR is not there, the title company will show a problem with title because it will not know that transfer was a gift.

As to dues, the way they actually work is as follows. In December, Disney sets and sends out notice of your estimated dues for the next calendar year. Your dues for that entire next year are actually deemed owed in total at the time of that notice. However, those who pay all at once don't have to actually pay until January. Those on monthly get an amount withdrawn monthly from Jan through the next December. If you are paying monthly, and you go to sell the property, at the time of closing all dues for the remainder of the calendar year must be paid to Disney as part of the closing. Disney does not, with resales, allow the buyer to just assume the monthly payments for the rest of the year. The new buyer can go to monthly payments the next calendar year. Same for a gift -- any outstanding dues for the year are paid when the actual transfer (closing) occurs.

The resales that have the biggest "surprise" are ones that have closing in December after that notice of the next year's dues has gone out. One of the closing costs for such a December closing is to pay Disney the dues for the entire next calendar year because the closing actually occurs after those dues were deemed owed in total.

Disney, of course, with its own sales, pro rates the dues for the year and allows the buyer to pay monthly after the sale.

 

[psu4glory]

The resales that have the biggest "surprise" are ones that have closing in December after that notice of the next year's dues has gone out. One of the closing costs for such a December closing is to pay Disney the dues for the entire next calendar year because the closing actually occurs after those dues were deemed owed in total.

this happened to us...we bought a resale BWV contract and closed in JAN 2006 - so we had to come up with the full year's worth of dues. it wasn't so much a 'surprise' cost since it had been fully disclosed to us during the purchasing process - but definitely a significant peripheral cost that had to be considered.

sometimes, as part of the sale, the seller will cover the current year's worth of dues...they're just probably not inclined to do so on a sale that happens in JAN.