Is this possible (sm contract Q)?

[kdzgon]

If I am a member and wanted my DD to have a small contract (50 pts or so), could I buy an add-on contract and eventually transfer ownership to her? Could I also sell it to her if I chose (instead of transfer)? I am not asking about the legal process but rather restrictions from Disney. Is there anything that prohibits transfers to family members? (I'm not really that nice - we plan on holding - and using! - for the forseeable future, but I have seen several threads talking about trying to get family members to add on, etc. and it got me wondering...)

Also, if DH and I own a joint contract, could I then add on a small contract on my own, or would I need to purchase a min of 150 if the title would be different?

 

[RobDoc]

DVC has usually been pretty good about transferring ownership to family. You would still need to submit to ROFR and the ownership change would still need to be recorded thru the county - so there are some costs involved, but it can be done.

I'm pretty sure that add-ons must be titled the same as the master contract, but I think there are some ways to add addtional names - again, any changes made to the title will still need to clear ROFR and be recorded with the county.

 

[Dean]

You can do the add on then later pay to have the title transferred. You can transfer to family members and technically need to go through the ROFR. However, when you start talking selling to a family member, the ROFR becomes a more dicey issue and DVC could step in and take the contract family member or not. And it's illegal to agree on one price and put another on the contract. Your DD would have to be of legal age, 18 or older to add her to the deed.

I'd ask your guide about this issue. Tell them what you want and that you're planning to change it over one way or another. Have them ask management about it. You may be surprised they decide to do it up front for you because it would cost them more later if you change it over after the fact.

 

[kdzgon]

DVC has usually been pretty good about transferring ownership to family. You would still need to submit to ROFR and the ownership change would still need to be recorded thru the county - so there are some costs involved, but it can be done.

I'm pretty sure that add-ons must be titled the same as the master contract, but I think there are some ways to add addtional names - again, any changes made to the title will still need to clear ROFR and be recorded with the county.

Yes, I know we can add names to the deed (if no financing, & for a cost to re-record the deed, of course). I can see ROFR for a sale, but what if I want to give it to her? I'm curious as to how that would be outlined for ROFR, as (if I pass ROFR first) I'm certainly not giving my points back to Disney <g>! Definitely a Q to add on to my list for my guide....

 

[Dean]

Yes, I know we can add names to the deed (if no financing, & for a cost to re-record the deed, of course). I can see ROFR for a sale, but what if I want to give it to her? I'm curious as to how that would be outlined for ROFR, as (if I pass ROFR first) I'm certainly not giving my points back to Disney <g>! Definitely a Q to add on to my list for my guide....

Technically you still have to go through ROFR but it's automatic when giving it to family.

 

[salmoneous]

However, when you start talking selling to a family member, the ROFR becomes a more dicey issue and DVC could step in and take the contract family member or not. And it's illegal to agree on one price and put another on the contract.

However, it would not be illegal for a parent to give their kid $5000, and then have the kid buy a 50 point contract from them at $100/point. As long as the gift is not conditional upon the sale, there would be no fraud or misrepresentation involved.

 

[kdzgon]

However, it would not be illegal for a parent to give their kid $5000, and then have the kid buy a 50 point contract from them at $100/point. As long as the gift is not conditional upon the sale, there would be no fraud or misrepresentation involved.

Problem would be I believe she could not buy a 50 point contract if she is not a member herself - first purchase must be 150 min - that's why I asked about gifting the contract instead of the $$ (or just buying directly in her name to start).

BTW, Dean - thanks for your response - looks like we posted at the same time, so I did not see your first post right away. This is all theoretical anyway as with six kids between us, I see no fair way to give away anything right now. That's OK though - I'm sure they'd prefer we pay MFs and just invite them to come along...at least for now! I have talked to Disney about breaking up our contract in to smaller amounts (after the first 150). As long as I do it at the time of original purchase there will be no additional cost to do so. I asked about a change in deed name, but only regarding between spouses. We're looking at just putting all the contracts in to a trust rather than worry about inequitable distribution upon our demise (gonna try that "late checkout" request, in the meanwhile - LOL).

 

[Caskbill]

Years ago when the minimum purchase was much higher, my brother wanted to buy DVC but not that many points. I was a member, so he gave me money and I did an 85 point add on purchase, in my name. We just kept track of the points he used versus what I used. No big deal, just a little point management process.

A few years later when he had more vacation he was ready to buy more points and was ready to have his own DVC-Contracts. Time for his 'add-on to be returned.

We contacted Disney, told them we wanted to transfer my 85-point add-on to my brother. They actually sent me a letter saying we could do that, and they would waive their ROFR.

My brother paid the small legal fees for the transfer. No money exchanged hands (since it was his money that paid for it in the first place.)

He got his contract back, did his add on, and now it's been about 10 more add-on's for him since then.

The point is, they sent us a letter stating they would waive ROFR. Don't know if they still do that or not, but they did for us.

Just FYI.

 

[kdzgon]

That's what I love about coming here - I learn the questions to ask (of Disney). Although I discussed the possible eventual transfer to my kids, my guide offers NO information whatsoever other than the bare basics unless I ask specific questions. She has never refused to answer and is usually helpful with her responses, but I need to ask pointed questions first. So, thanks again to all those more seasoned members that are always willing to guide us "newbies" along.