Grand Floridian Villas - Resale restrictions?

[Chi35364]

Hi All,

I'm looking at possibly buying a Grand Floridian Villa direct from Disney. They are currently offering $207/point. Thinking of doing 150points.

I have been doing some research, and found that newer resorts like the Rivera have made it hard for direct buyers to resell their contracts. Does this only apply to the Rivera, or is the Grand Floridan excluded? If in the future i decide to sell my GF contract, can the new buyer only use it at GF or can they use it at all the other DVC resorts?

 

[Sunnyore]

Hi All,

I'm looking at possibly buying a Grand Floridian Villa direct from Disney. They are currently offering $207/point. Thinking of doing 150points.

I have been doing some research, and found that newer resorts like the Rivera have made it hard for direct buyers to resell their contracts. Does this only apply to the Rivera, or is the Grand Floridan excluded? If in the future i decide to sell my GF contract, can the new buyer only use it at GF or can they use it at all the other DVC resorts?

For now that restriction only applies to Riviera. The Grand does not have that restriction currently.

 

[J-Dog]

Hi All,

I'm looking at possibly buying a Grand Floridian Villa direct from Disney. They are currently offering $207/point. Thinking of doing 150points.

I have been doing some research, and found that newer resorts like the Rivera have made it hard for direct buyers to resell their contracts. Does this only apply to the Rivera, or is the Grand Floridan excluded? If in the future i decide to sell my GF contract, can the new buyer only use it at GF or can they use it at all the other DVC resorts?

I would disagree with that. That's the speculation, but so far, the data doesn't show that happening.

 

[Chi35364]

Thanks, i'm going to talk with my DVC sales rep and get a written answer on this.

 

[SleeplessInTO]

Thanks, i'm going to talk with my DVC sales rep and get a written answer on this.

It only applies to Riviera at this time. If you sell your Grand Floridian contract tomorrow, the buyer will be able to use it at every DVC resort except Riviera. Whether the buyer will be able to use it at future resorts down the line is unknown.

I read through my contracts very very carefully when I bought Grand Floridian this March. I encourage you to do the same.

 

[EYL]

Resale restrictions came to all resorts as of January 2019. While it’s more prominent for the Riviera right now, it will affect the resale value of all resorts eventually, especially as the older resorts expire. If you’re in it for the long haul, make sure you know what you’re getting into.

 

[Sandisw]

Thanks, i'm going to talk with my DVC sales rep and get a written answer on this.

There is one one condo association for VGF so the new rooms are BPK follow that.

The POS for VGF does not restrict resale owners to VGF. They are, however, restricted from RIV and future resorts.

 

[TinkAgainU]

I would be sure to do the math between resale and direct - along with looking at the restrictions, of course. Right now there is a 100 point contract available (Dec use year) for $155/point on the fidelity site (sorry, not sure if we're allowed to post links). My point is, the resale values at Floridian are very fluid right now ... they were at $175 to $185 around three months ago for a 100 point contract.

 

[Sandisw]

I would be sure to do the math between resale and direct - along with looking at the restrictions, of course. Right now there is a 100 point contract available (Dec use year) for $155/point on the fidelity site (sorry, not sure if we're allowed to post links). My point is, the resale values at Floridian are very fluid right now ... they were at $175 to $185 around three months ago for a 100 point contract.

Posting the link is what we ask people to do. Here are the boards guidelines for your reference!

Thread 'PLEASE post a link to any business or site you wish to mention or discuss'
https://www.disboards.com/threads/p...-site-you-wish-to-mention-or-discuss.3821848/

 

[Curiousporpoise]

I would be sure to do the math between resale and direct - along with looking at the restrictions, of course. Right now there is a 100 point contract available (Dec use year) for $155/point on the fidelity site (sorry, not sure if we're allowed to post links). My point is, the resale values at Floridian are very fluid right now ... they were at $175 to $185 around three months ago for a 100 point contract.

 

[TinkAgainU]

Posting the link is what we ask people to do. Here are the boards guidelines for your reference!

Thread 'PLEASE post a link to any business or site you wish to mention or discuss'
https://www.disboards.com/threads/p...-site-you-wish-to-mention-or-discuss.3821848/

Thanks, Sandi.

The site I mentioned was http://www.fidelityresales.com/ - but since I mentioned resale prices for VGF on that specific site, I do want to mention their Resale Contract made me uncomfortable - it states if a BUYER cancels outside the 10 day window they owe the Broker's commission IN ADDITION to losing their deposit. I have not read every purchase contract out there (and assume they change) but I'm personally not fond of that one since I know that term is NOT in all the Brokers' contracts.

Obviously, it's important to read EVERY document you are sent to approve since they vary!

 

[WilsonFlyer]

It's interesting that when resold, restrictions can apparently apply to using points at Riviera. I would have thought that was part and parcel to the original association agreement for VGF. I find it odd that they can even do that. I get the restrictions on the new association at Riviera. Those were there from the get-go, but I don't see how restrictions can be applied to contracts sold under an association that didn't originally include those restrictions in its charter. I know it will never be pursued, but would it hold up in a courtroom? Then again, I honestly wonder if any of the restrictions against resale owners of the original resorts would hold up in a court of law, but I'm just an armchair lawyer using common sense as my guide.

 

[Huskerpaul]

I believe that like many timeshare systems, you are only guaranteed the use of the resort on your deed. That is one thing DVC cannot change.

 

[Sandisw]

It's interesting that when resold, restrictions can apparently apply to using points at Riviera. I would have thought that was part and parcel to the original association agreement for VGF. I find it odd that they can even do that. I get the restrictions on the new association at Riviera. Those were there from the get-go, but I don't see how restrictions can be applied to contracts sold under an association that didn't originally include those restrictions in its charter. I know it will never be pursued, but would it hold up in a courtroom? Then again, I honestly wonder if any of the restrictions against resale owners of the original resorts would hold up in a court of law, but I'm just an armchair lawyer using common sense as my guide.

When RIV entered into BVTC, it entered with different rules for trading into its resort. I know we lump the L14 together as a group, but in reality each resort has an agreement with BVTC on how it will work the trades with others.

So, RIVs language is that only those points direct from each resort,..and those grandfathered…can trade in and in exchange both resorts resale points can’t trade to the other one.

In terms of the changes, the DVC resort agreement does say it. can be amended,,,that’s what deals with the trades…

But since they grandfathered all points prior to adding RIV…those owners are still under the same rules in which they bought…the owners who bought before the change have suffered no harm.

Prior to RIV, there was a clause that mentioned something like all resorts would enter with similar rules…but that is no longer in the multi site POS.

I think that is the piece as to why the restrictions are allowed to stand, but I know others do not, and who knows what a court of law would decide, especially since the change was not retroactive.

I do think it would be very difficult to ever apply them to resorts that never had them and why the grandfathering was done.

The only conceivable way…and I don’t think it would ever happen…it might be done is to dissolve BVTC, have all resorts have no trading, and then create a new exchange company with each resort getting into a new DVC resort agreement with new terms, That is just way too much legal work to simply leave as is and have it apply moving forward to all future resorts.

 

[RoseGold]

I would disagree with that. That's the speculation, but so far, the data doesn't show that happening.

LOL. Sure, you can sell it if you're wiling to lose your shirt on it. That's what the "data" shows.

This is so pedantic. The point of the resale restrictions is to make RIV (and maybe future properties?) less valuable on the resale market. That's by design. It's not a surprise.

To me, the most important factor in buying DVC right now is exit strategy, because you have to decide how to buy in. DVC is splitting into two camps, and that's very much by design. You need to know if you plan to hold this long term or not.

 

[RoseGold]

I believe that like many timeshare systems, you are only guaranteed the use of the resort on your deed. That is one thing DVC cannot change.

You're not even guaranteed that. The resorts can burn down or get sold or close for a pandemic, I can keep going.

 

[Sandisw]

You're not even guaranteed that. The resorts can burn down or get sold or close for a pandemic, I can keep going.

As long as the resort exists, you are guaranteed the use of the home resort. All those other things have nothing to do with ownership.…they would be catastrophic situations.

And, the resort can not be sold without the consent of every owner, so no, that can not happen either.

 

[RoseGold]

As long as the resort exists, you are guaranteed the use of the home resort. All those other things have nothing to do with ownership.…they would be catastrophic situations.

That's just not true. All of them closed for Covid. VGC even stayed closed after it was allowed to open.

 

[Sandisw]

That's just not true. All of them closed for Covid. VGC even stayed closed after it was allowed to open.

What’s not true? That the closures were done because of what was a nationwide shut down and rules?

VGC certainly did stay closed longer than others but there were still restrictions in place that allowed them to keep the property closed.

But all those owners were still given the opportunity to use points at other resorts even though their resort was closed.

The intent of the comment was about our ownership interests and not all the what ifs if there is a fire, etc.

They simply can’t shutter the resorts just because they want to without legal reasons

 

[J-Dog]

LOL. Sure, you can sell it if you're wiling to lose your shirt on it. That's what the "data" shows.

This is so pedantic. The point of the resale restrictions is to make RIV (and maybe future properties?) less valuable on the resale market. That's by design. It's not a surprise.

To me, the most important factor in buying DVC right now is exit strategy, because you have to decide how to buy in. DVC is splitting into two camps, and that's very much by design. You need to know if you plan to hold this long term or not.

Well, I barely remember posting that comment 2 months ago, but since you quoted me, I completely disagree that timeshare ownership needs to have an exit strategy.

Maybe it comes from different socioeconomic background, or maybe it comes from how it was initially presented, or maybe it comes from someone having a better long-term vision than me, but I don't consider DVC an investment - it's a luxury.

I have many investments, but this is not one of them. I fully intend to get enough use out of my points to "make up" for the initial and ongoing costs. Maybe that's stupid and poor economic sense, but that's my opinion - just like you have yours.

Unlike you, though, I just don't feel the need to publicize my opinion about the same thing every few days...