Grandfathered DVC resale blue card

jbh275

Love VGC
Joined
Jul 8, 2014
Messages
521
I’m thinking of selling a contract I bought back in 2017. I’ve got 2, with the same use year. One I bought 50 SSR in Dec 2016. The other is VGF, 180 points, bought Feb 2017. I want to sell the SSR, but do not want to lose my blue card. I’m not sure if the Feb 2017 is grandfathered in. It was really close to the rule change. Does anyone know the month of 2017 the rules changes?
Thank you!
 
I’m thinking of selling a contract I bought back in 2017. I’ve got 2, with the same use year. One I bought 50 SSR in Dec 2016. The other is VGF, 180 points, bought Feb 2017. I want to sell the SSR, but do not want to lose my blue card. I’m not sure if the Feb 2017 is grandfathered in. It was really close to the rule change. Does anyone know the month of 2017 the rules changes?
Thank you!
I believe the cut off date for resale contracts qualifying for blue card benefits was April 4, 2016.
 
I believe the cut off date for resale contracts qualifying for blue card benefits was April 4, 2016.
I hope you don't mind one more question. We bought points on 5 different occasions, most resale, but the last purchase was in 2012 or 2013 (Can't remember which)-certainly way before 2016. Should we be concerned about ever having resale restrictions? Or are we grandfathered for life, regardless of us selling anything?
 

I hope you don't mind one more question. We bought points on 5 different occasions, most resale, but the last purchase was in 2012 or 2013 (Can't remember which)-certainly way before 2016. Should we be concerned about ever having resale restrictions? Or are we grandfathered for life, regardless of us selling anything?

The points carry the restrictions so you’d always need to own at least one of those contracts to be grandfathered for membership extras.
 
I hope you don't mind one more question. We bought points on 5 different occasions, most resale, but the last purchase was in 2012 or 2013 (Can't remember which)-certainly way before 2016. Should we be concerned about ever having resale restrictions? Or are we grandfathered for life, regardless of us selling anything?

They can not go back and change what you have. You will be safe. Future points could have different benefits and abilities than current points.
 
I hope you don't mind one more question. We bought points on 5 different occasions, most resale, but the last purchase was in 2012 or 2013 (Can't remember which)-certainly way before 2016. Should we be concerned about ever having resale restrictions? Or are we grandfathered for life, regardless of us selling anything?
If you purchased resale in 2012 or 2013, you do have the resale restriction that prohibits you from using resale points to trade out for reservations in anything in the Disney Collections, one of the membership extras.

If you are asking whether, even if you kept all those prior resale contracts, you will always be entitled to other membership extras far into the future, the answer is yes with one exception: DVD could legally take away any membership extras from all existing members even ones who purchased directly from DVD, e.g., (a) it "suspended" pool hopping among the DVC Resorts during the pandemic and that member benefit may never return; (b) in the 1990's and early 2,000's a member could purchase length-of-stay park passes at a discount and that was done away with, after which DVD adopted an Annual Pass discount. In other words, it cannot do anything to take away more membership extras from resale purchasers who purchased before April 4, 2016, unless it also does away with the benefit for direct purchasers.

What DVD most likely cannot legally do is decide that resale contracts purchased before January 19, 2019, have no right to reserve the resorts begun after that date. That is the effective date, announced before it occurred, of the rule prohibiting resale purchasers from reserving resorts opened after that date. The POS's of those pre-2019 resorts provide that owners, both direct and resale, can reserve an unowned-DVC resort, including any added to the DVC reservation system in the future. DVC cannot change that rule for any pre-2019 purchasers, direct or resale. There actually remains a continuous legal issue as to whether that is even legal as to 2019 and after resale purchasers of pre-2019 resorts. The terms of the pre-2019 POS's indicate that no such restriction is allowable even as to any future resort added to the DVC reservation system after 2018, but DVD may have a possible defense as to post-2018 resale purchasers raising the issue since they purchased with knowledge of the restriction and thus possibly waived any claim to avoid it.
 
Last edited:
The owner can put a family member on the contract and then once that is complete the original owner can remove their name. At that point, the responsibility for MF's is on the family member who then gets the original benefits. I do not think this goes against any rules if then the new owner "gifts" the original family member owner a couple years points. Someone please correct me if I am wrong.

We have our son and DIL on our direct contract for succession as we envisioned this scenario and know we can just remove our names in the future.

To sell 50 points SSR even at $100 PP, the net may only be low $4000's anyway and you lose any "benefits" which is totally different IMO than reselling a contract bought on the secondary market in 2020 with no ability to stay at new resorts anyway. Just my thoughts...
 
The owner can put a family member on the contract and then once that is complete the original owner can remove their name. At that point, the responsibility for MF's is on the family member who then gets the original benefits. I do not think this goes against any rules if then the new owner "gifts" the original family member owner a couple years points. Someone please correct me if I am wrong.

We have our son and DIL on our direct contract for succession as we envisioned this scenario and know we can just remove our names in the future.

To sell 50 points SSR even at $100 PP, the net may only be low $4000's anyway and you lose any "benefits" which is totally different IMO than reselling a contract bought on the secondary market in 2020 with no ability to stay at new resorts anyway. Just my thoughts...
Gratuitous transfers, whether it is by adding someone to the membership, or even giving the ownership interest away to a complete stranger, are not subject to any resale restrictions, except those that existed for the owner or owners before the gratuitous transfer was made. It is only when a transfer is made for compensation that DVD's right of first refusal can potentially apply and the new members may be subject to all resale restrictions that exist when they purchase.

As to a divorce proceeding, if the parties can actually agree to having one party keeping the contracts, via a deed transfer from both to just one of them, with the recipient compensating the other one with money for doing so, DVD has in the past not treated that as a transfer subject a right of first refusal, and it is not treated as a resale for the purpose of applying any resale restrictions except those that existed before the transfer. Nevertheless, one should always consider contacting DVD before doing such a transfer in the divorce proceeding to confirm it will not contend it will be treated as a resale.
 
Last edited:
Gratuitous transfers, whether it is by adding someone to the membership, or even giving the ownership interest away to a complete stranger, are not subject to any resale restrictions, except those that existed for the owner or owners before the gratuitous transfer was made. It is only when a transfer is made for compensation that DVD's right of first refusal can potentially apply and the new members may be subject to all resale restrictions that exist when they purchase.

As to a divorce proceeding, if the parties can actually agree to having one party keeping the contracts, via a deed transfer from both to just one of them, with the recipient compensating the other one with money for doing so, DVD has in the past not treated that as a transfer subject a right of first refusal, and it is not treated as a resale for the purpose of applying any resale restrictions except those that existed before the transfer. Nevertheless, one should always consider contacting DVD before doing such a transfer in the divorce proceeding to confirm it will not contend it will be treated as a resale.
Thank you! You are so knowledgeable about DVC. Way more than my 28 years experience!
 



New Posts













DIS Facebook DIS youtube DIS Instagram DIS Pinterest DIS Tiktok DIS Twitter

Back
Top