Is there laws to prevent Disney from doing this

[Hoppy-tn]

I don’t know anything about rules,regulations,laws,etc and have seen many comments in post about timeshare laws so got me wondering is there laws,regulations,etc that could prevent Disney from having direct purchased contracts stating that they cannot be sold through a third party or sold on a resale market? In other words disney would be the only ones that could repurchase a contract once it is bought directly from them.

 

[Sandisw]

It is addressed in the timeshare laws. They can not prevent you from you selling it via a third party.

The ROFR aspect is what allows them the option to have first crack at it.

http://www.leg.state.fl.us/statutes...ing=&URL=0700-0799/0721/Sections/0721.17.html

 

[AprilsZoo]

They already have ROFR for the exact reason of wanting to get first dibs on contracts. Beyond ROFR, it’s not really in their best interests to prevent someone from selling their contract if they no longer want it. They would just end up with a lot of foreclosures, which would cost them a lot of money.

 

[Matty B13]

I don’t know anything about rules,regulations,laws,etc and have seen many comments in post about timeshare laws so got me wondering is there laws,regulations,etc that could prevent Disney from having direct purchased contracts stating that they cannot be sold through a third party or sold on a resale market? In other words disney would be the only ones that could repurchase a contract once it is bought directly from them.

If they did, they would have to disclose at the time of sale what the "buy back" price would be, i.e. 75% of the current direct price. This would be like Ford saying that you could only sell your F-150 back to Ford.

 

[Brian Noble]

It is addressed in the timeshare laws. They can not prevent you from you selling it via a third party.

I suspect this might depend on what they are selling.

Right now, they sell "deeded interests" which themselves are a little odd, because they are not in perpetuity. (Whether Deeded or non-deeded was preferable was fairly controversial in the timeshare world before DVC was created; the former meant you owned in perpetuity, the latter meant you didn't. DVC muddied the waters significantly here).

But, setting that aside, the "deeded" nature seems to suggest that selling to an arbitrary third party is legally protected, because you own "real" property. There's also the question of what exactly you are selling: for Riviera, the thing you are selling will grant the buyer access only to Riviera, even though what you own (assuming it was purchased from Disney) grants you access to more.

However, deeded isn't the only way to go. Club Wyndham Access does not sell deeds; they sell memberships in a trust. As it happens, these interests can be resold and they carry the same reservation rights for the buyer as they did for the seller. There are some other features that are different from deeded timeshares: the developer retains the voting rights at the underlying resorts in the trust, and recovering an ownership from an owner not paying their annual fees is much easier than it is for deeded real estate--the latter requires a foreclosure.

But, I am not 100% sure that the trust-membership model can't be structured in a way that can't be meaningfully resold. I dimly recall a couple of "vacation clubs" that are set up this way but I can't off the top of my head supply the details.

 

[sethschroeder]

This would be like Ford saying that you could only sell your F-150 back to Ford.

Well Ford did recently state you can't buy our your lease on any electric vehicle moving forward. So maybe the OP is on to something here.