Discussion in 'Purchasing DVC' started by sol2338, Mar 28, 2013.
Is there a limit? Can 4 adults go on the title?
AFAIK, there is no limit. Certainly, four is allowed as I am certain that there are existing contracts with that many individuals listed as owners
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Be mindful that all 4 will own the contracts and if something happens to 1 owner, the other 3 may be left with nothing. The law is different in different States so you should find out what happens.
We have five adults...husband, wife and three adult daughters.
It's unlimited... I put 6 adults on my small 50 pt BWV contract. myself, husband, sister, dad, mother in law, and close friend. we are all able to get member perks, including taking advantage of the awesome PAP deal (for up to 8 family members). You are risking the contract if anyone has bankruptcy problems, gets in an at-fault car accident or has any other liability in which the court can order seizure of their assets. There is also an issue with potential estate issues if someone dies -- florida probate will be required. For us, all these potential issues were worth the risk. We only put myself and my husband on our larger BLT contract though.
With regard to this question, I own as a single man but don't want my partner to have trouble using the measly 10% discount on merchandise. Is it possible to get another membership card with his name on it?
Sorry, only those on the deed are given membership cards.
That's not quite accurate as I understand it. If there are 4 owners, they would own 1/4 each if they own jointly. While it's possible a creditor could force the sale, all that would be at risk would be 1/4 of the proceeds after any sales costs, they couldn't take it all. While I agree it's good to understand there are risks with multiple owners, it's not an all or none. The issue is not unlike the thought process that goes into savings for a child's college. Do you put the money in their name for the tax benefits but run the risks that they will use it for other reasons when they reach the qualification age or that it will count far greater toward grant type qualifications (it does).
This can even be an issue within a given household between spouse's since generally you're only liable for what you actual own and not the debt's of the spouse though it does get a lot more complicated than just whether DVC is at risk when it gets down to this level.
It all depends on how the contract is titled and the applicable state laws. There are several ways to title/own something with other people. Each has advantages and disadvantages.
The OP should consult an attorney who can advise on the best way to buy & title, depending on his/her specific situation.
That is what we were told when we started buying contracts. We even had an issue where Disney didn't use the same format as our prior deeds and the new contracts/deeds had to be re-done.
Is there any situation where the entire thing would be at risk in FL other than if it were specifically titled that way, I can't think of anything that would cause that risk. As I understand it, Joint ownership would not create that issue nor would joint with right of survivorship. Tenants in Common could but it's be base on who had more invested, not just because their name were added to the deed. Of course you could also draft a deed that specified the % ownership.
I'm not a lawyer. You may be correct. I was just repeating (paraphrasing) what our attorney (who isn't licensed to practice n Florida) told us when we purchased.
Slightly OT but found this interesting:
A friend is filing chapter 7 (due to medical bills) single not joint with her spouse. Most of the assets are in her husband's name including the deed to 'his' house which they never switched over when they married.
she tells me that her lawyer (in PA) states their home is excluded but their DVC timeshare (no mortgage) will be sold for pennies on the $. However, if they had a joint mortgage on it, the trustee likely wouldn't bother with it.
ROFR back to DVC most likely.
true have to wonder how many 'deals' DVC gets courtesy of the trustees
Likely quite a few. I am certainly no bankruptcy expert (thank goodness) but I do know that the property risk varies with whether it's a common law property or community property state. Thus there are situations where a property is at risk for a married couple with one filing even if their name is not on certain assets. I also wonder if there's a way to save the DVC in this situation to the other spouse but realize it'd be up to the trustee and applicable laws.
not sure either but believe in PA a joint asset is sold, not sure how that would apply to one's home, hope i never have to worry about it.
If the DVC is titled as Tenants by the Entirety (i.e., in both Husband and Wife's name), and she is the only one filing for bankruptcy, than DVC is most likely protected. The only question is if there are any unsecured creditors that are jointly titled in both Husband and Wife's names in the bankruptcy. If not, than DVC is protected (again if it is titled as TBE). Both FL and PA law on TBE are the same, only joint debts or if Husband is co-debtor can cause the liquidation of the DVC timeshare.
Also, if there is a joint debt, and lets say the debt is $2K, the Trustee will allow the Wife or Husband to pay the trustee $2K to keep the DVC time and the $2K will be distributed to the unsecured debtors.
I once had a trustee get annoyed at me because one my client's had a house with substantial equity titled as TBE and he went over the credit report for 10 minutes trying to find a joint debt. Wife was not included in bankruptcy and when he could not find a joint debt. After he was done, I responded "I told you I did my due diligence."
mistergq so complicated of a process, thanks for that explanation, very interesting. I'll mention it to my friend the next time i speak with her to check the deed's title.
Separate names with a comma.