Interesting OKW extension issue UPDATE GOOD NEWS

[z28wiz]

I tried to extend a small contract I had okw that was bought resale but am unable to. Reason being the prior owner had signed the quit claim deed with Disney. They said there is no way around it to purchase the extension. Just thought I would let everyone know this.

 

[wilma-bride]

That is an intereting piece of information. Useful if you are considering buying OKW through resale.

 

[RobDoc]

I tried to extend a small contract I had okw that was bought resale but am unable to. Reason being the prior owner had signed the quit claim deed with Disney. They said there is no way around it to purchase the extension. Just thought I would let everyone know this.

Thanks for reporting that. It may shed some light on the increase in ROFR on OKW contracts in recent months if the only way to acquire the 2057 expiration date will be to purchase directly thru DVC or to find a resale that has already been extended by the seller.

It would be interesting to hear if anyone else has been allowed to purchase the extension on a resale purchase in the past few years. The extension was offered in fall, 2007 at the "discounted" price of $15 per point. That price was supposedly raised to $25 per point in March, 2008. DVC holds all of the quit claim deeds signed by owners who declined the extension but now all direct contracts are sold with the extension.

Thanks again for the report.

 

[Dean]

I tried to extend a small contract I had okw that was bought resale but am unable to. Reason being the prior owner had signed the quit claim deed with Disney. They said there is no way around it to purchase the extension. Just thought I would let everyone know this.

This was my understanding of how it was supposed to work. The only one's that are likely to have the option, and at the higher price, are those that never signed a quit claim deed. However, I think they have to clear that issue up before they could resell so the resale buyer would likely never have the option assuming they bought after the extension was available.

 

[DisDad07]

This is very interesting, as I bought resale on OKW, put not sure if I could add the extension on at this point in time or not. I guess I will have to contact MS and find out if the prior owner signed away the right .

 

[z28wiz]

Thanks for reporting that. It may shed some light on the increase in ROFR on OKW contracts in recent months if the only way to acquire the 2057 expiration date will be to purchase directly thru DVC or to find a resale that has already been extended by the seller.

It would be interesting to hear if anyone else has been allowed to purchase the extension on a resale purchase in the past few years. The extension was offered in fall, 2007 at the "discounted" price of $15 per point. That price was supposedly raised to $25 per point in March, 2008. DVC holds all of the quit claim deeds signed by owners who declined the extension but now all direct contracts are sold with the extension.

Thanks again for the report.

No problem, only reason why I wanted to extend the contract was because I had purchased a few more extended okw contracts via resale recently and wanted all my okw contracts to have the same expiration date.

 

[lodge]

I had wondered about this topic. Thanks for the information.

 

[z28wiz]

Ok received a call from my guide today. This past week I had a few phone calls with member adminstration and there is an actual way to get the extension even if the quit claim deed was filed. What has to happen is that you have to deed the property back to dvc then you obtain a brand new deed that expires at the extended time. It is the 25 per point for the extension. But figuring what I paid for this resale contract a while back its well worth it.

 

[ELMC]

Ok received a call from my guide today. This past week I had a few phone calls with member adminstration and there is an actual way to get the extension even if the quit claim deed was filed. What has to happen is that you have to deed the property back to dvc then you obtain a brand new date that expires at the extended time. It is the 25 per point for the extension. But figuring what I paid for this resale contract a while back its well worth it.

That's good information, thanks. Have you taken the time to analyze the numbers though? Typically OKW extended resales are less than $25 more than 2042 contracts. Also, the objection to the extension at the time was you were paying now for a future benefit, and at that time I believe the extension was $15 for those that acted by a certain date. At first glance paying $25 per point right now for something that won't take effect for 29 years does not seem like a good deal. Assuming a 3% rate of return on that money, it is the equivalent of paying $58.91 per point in 2042. This is sheer speculation, but I'm projecting the value of contracts with 15 years left on them to be much less than that in 29 years. Just something to think about anyway.

 

[z28wiz]

That's good information, thanks. Have you taken the time to analyze the numbers though? Typically OKW extended resales are less than $25 more than 2042 contracts. Also, the objection to the extension at the time was you were paying now for a future benefit, and at that time I believe the extension was $15 for those that acted by a certain date. At first glance paying $25 per point right now for something that won't take effect for 29 years does not seem like a good deal. Assuming a 3% rate of return on that money, it is the equivalent of paying $58.91 per point in 2042. This is sheer speculation, but I'm projecting the value of contracts with 15 years left on them to be much less than that in 29 years. Just something to think about anyway.

Yeah I thought it through. Its only a small contract anyways its a 60 point contract. My other OKW contracts are extended and the two I have going through ROFR are as well. I am 32, my wife is 30 and our twin boys are 6 so the added years could possibly help come down the road for either us or the boys. The money point, I know what your saying and agree, but the little extra spent just to have all contracts match on end dates is worth it for us just for the piece of mind.

 

[RobDoc]

Yeah I thought it through. Its only a small contract anyways its a 60 point contract. My other OKW contracts are extended and the two I have going through ROFR are as well. I am 32, my wife is 30 and our twin boys are 6 so the added years could possibly help come down the road for either us or the boys. The money point, I know what your saying and agree, but the little extra spent just to have all contracts match on end dates is worth it for us just for the piece of mind.

Thanks for the update. I'm glad you gave them the squeaky wheel treatment and they were able to help. In this case no one else could use those points until 2042 anyway and they are getting $1500 for the points you want. It sounds as though the solution was similar to the challenge they had with the original extension offer and the only practical option was to create a new deed - hopefully they did not charge you any closing fees.

 

[z28wiz]

Thanks for the update. I'm glad you gave them the squeaky wheel treatment and they were able to help. In this case no one else could use those points until 2042 anyway and they are getting $1500 for the points you want. It sounds as though the solution was similar to the challenge they had with the original extension offer and the only practical option was to create a new deed - hopefully they did not charge you any closing fees.

No closing fees, just a straight $1500.

 

[ELMC]

Yeah I thought it through. Its only a small contract anyways its a 60 point contract. My other OKW contracts are extended and the two I have going through ROFR are as well. I am 32, my wife is 30 and our twin boys are 6 so the added years could possibly help come down the road for either us or the boys. The money point, I know what your saying and agree, but the little extra spent just to have all contracts match on end dates is worth it for us just for the piece of mind.

That's money well spent, IMO. Glad everything worked out for you!

 

[Dean]

Ok received a call from my guide today. This past week I had a few phone calls with member adminstration and there is an actual way to get the extension even if the quit claim deed was filed. What has to happen is that you have to deed the property back to dvc then you obtain a brand new deed that expires at the extended time. It is the 25 per point for the extension. But figuring what I paid for this resale contract a while back its well worth it.

Thanks for the update, does that make them qualified points?

 

[drusba]

That raises a very interesting question. It sounds like they are issuing a new deed for the whole thing for $25 that goes until 2054. Does that mean the owner, if he purchased resale subject to the no Disney collections restriction, now has a contract that is no longer subject to that restriction since it is a new transfer from Disney?

 

[z28wiz]

That raises a very interesting question. It sounds like they are issuing a new deed for the whole thing for $25 that goes until 2054. Does that mean the owner, if he purchased resale subject to the no Disney collections restriction, now has a contract that is no longer subject to that restriction since it is a new transfer from Disney?

I didn't bring up that point, not sure.

 

[Dean]

That raises a very interesting question. It sounds like they are issuing a new deed for the whole thing for $25 that goes until 2054. Does that mean the owner, if he purchased resale subject to the no Disney collections restriction, now has a contract that is no longer subject to that restriction since it is a new transfer from Disney?

I can argue either side but I think the best argument is for the points becoming qualified.

I didn't bring up that point, not sure.

And I wouldn't yet. Once it's done see if it happens automatically then if not, ask member admin about it.

 

[PCMama]

I can argue either side but I think the best argument is for the points becoming qualified.

And I wouldn't yet. Once it's done see if it happens automatically then if not, ask member admin about it.

Yes and let us know

 

[z28wiz]

I can argue either side but I think the best argument is for the points becoming qualified.

And I wouldn't yet. Once it's done see if it happens automatically then if not, ask member admin about it.

Yeah I wasn't going to ask just see if it does work for the disney collection.

 

[RobDoc]

That raises a very interesting question. It sounds like they are issuing a new deed for the whole thing for $25 that goes until 2054. Does that mean the owner, if he purchased resale subject to the no Disney collections restriction, now has a contract that is no longer subject to that restriction since it is a new transfer from Disney?

It's even better than that - since it doesn't expire until 2057 for the OKW extension.