How are the contracts written?

[MinniesYooHoo]

Husband and I are very close to bidding on a contract and we were talking about what the official contract would say. I apologize in advance for my ignorance. I had asked on another thread if we needed to add our daughter's name on the contract for her to be able to use in the future and most of you suggested that it wasn't important. But will husband and I both be represented equally on the contract? I don't fully understand how the membership cards work. Will we both have one with equal privileges? I don't want to run into issues when we travel separate. I am very certain that I will have "girls only" trips with my mother, daughter, and various girlfriends, as well as my husband having "guys only" golfing weekends. How does the contract need to be worded to ensure we're both represented equally and both have access to all privileges? Thank you all so much for you insight and guidance.

 

[crisi]

Both my husband and I are on our contracts - he is first, so he gets all the mail, I have a membership card and make all the phone calls.

For your daughter, you should be careful. Setting her up as an associate on your contract will give her the ability to make reservations, but she won't qualify if she doesn't live with you for discounts on annual passes. However, actually making her a co-owner so she gets all the benefits has its own risks - if she marries and divorces or declares bankruptcy, your DVC is part of her assets. We've had a few posters over the years that lost their DVC this way.

 

[disneynutz]

Husband and I are very close to bidding on a contract and we were talking about what the official contract would say. I apologize in advance for my ignorance. I had asked on another thread if we needed to add our daughter's name on the contract for her to be able to use in the future and most of you suggested that it wasn't important. But will husband and I both be represented equally on the contract? I don't fully understand how the membership cards work. Will we both have one with equal privileges? I don't want to run into issues when we travel separate. I am very certain that I will have "girls only" trips with my mother, daughter, and various girlfriends, as well as my husband having "guys only" golfing weekends. How does the contract need to be worded to ensure we're both represented equally and both have access to all privileges? Thank you all so much for you insight and guidance.

Ownership is determined by the legal deed just like your house, not by the contract directly. There are different forms of deeded ownership and each has it's own legal aspects, a lawyer is the best person to ask.

Your daughter can't be on a deed as owner if she isn't of legal age.

Bill

 

[LisaS]

But will husband and I both be represented equally on the contract?

Only those whose names are on the deed are entitled to all of the ownership rights and perks and it's your decision whose names go on the deed. You can choose to have the deed in your name only, husband's name only, both of your names as joint tenants or tenants by the entirety. There are probably some other options as well.

I am not a lawyer and this is not legal advice but DH and I went with "tenants by the entireties" (or is it "tenants by the entirety"??) at the suggestion of the broker we used. (I looked up my deed and it states "entireties" but on the web this option is written as "entirety" so I'm not sure which is correct.)

Here is a link to a website that explains the difference between joint tenancy and the "entirety" option: http://www.nolo.com/legal-encyclopedia/free-books/avoid-probate-book/chapter6-4.html Major differences with the "entirety" option seem to be neither of us can sell his/her half of the joint ownership to another party, and the property cannot be taken to satisfy one party's debt.

ETA: I looked up my other deeds (contracts purchased directly from Disney) and those deeds list both of our names and then states "as wife and husband" (since my name is listed first). According to results of a google search, that wording is considered the same as "tenants by the entirety" but again, I am not a lawyer so you may want to consult a trained professional!

 

[Lynne M]

You won't have any control over how the timeshare contract itself is worded. The terms of the contract are the same for any owners at a particular resort. It's who's on the deed that matters. If you and your husband are both on the deed, then you can both make reservations, and you will both have membership cards, and you are both entitled to any discounts or perks that are currently offered to members.

If at some point in the future, you wish to add your (adult) daughter as an associate member, you can. That will allow her to make reservations. You can also add her to the deed, if you wish, but as a PP said, there are possible ramifications to that, if she marries, divorces, or declares bankruptcy.

I almost get the sense, from your questions, that you think that only those who are on the deed can stay in villas using your points. That's not the case. Even if, say, only you were on the deed, you could make reservations for your husband and his friends, or your daughter and her friends, or her daughter and her husband and children, or even a total stranger, if you wish.

The deed and associate membership just affects who can call MS or use the website to make reservations. Not who can stay in villas that you reserve.

 

[JimMIA]

There are really two issues here: ownership, and access to the account.

The manner in which the DVC holding is titled determines ownership. As noted above, with joint ownership you need to be sure you understand the differences between the options. Ownership is important in two situations -- selling, and encumberances.

If the contract is jointly held, all owners must agree to the sale of the contract. This can become an issue (or not) if life, times, and people change and the owners no longer see eye to eye. In the case of offspring co-owners, additional issues can come up with their spouses -- who, although not owners, may influence their spouse in problematic ways.

If any owner experiences severe financial setbacks -- which we have seen frequently in the last 5-6 years -- the DVC holding is an asset of that person, and could become a target for a creditor.

As far as access, previous posters have answered that perfectly. You can give anyone "Associate" status which allows them to conduct transactions with your points, but not sell your account. Think about that carefully, because they would be able to make decisions affecting your points...for better or worse.

And you can make reservations for anyone you want.

 

[Deb & Bill]

Associates are not entitled to any perks or benefits other than calling and making or cancelling reservations. They do not get a membership card that is required for perks and benefits.

 

[Dean]

From a perks and usage standpoint it doesn't matter. However, Disney will want a main contract person and they send the mail to one person at a specific address. They will send multiple mailings if the addresses are different. As for the legal issues of how to title such as tenants in common, etc; one should discuss with their estate lawyer.

 

[MinniesYooHoo]

Thanks everyone! You've addressed my concerns and answered my questions.