New $500 Resale DVC Transfer Fee

[Jlo85]

Out of curiosity, is there anything preventing them from charging $5000, or $50,000? What are the chances that this gets challenged in some way?

This fee immediately diminishes the value of existing DVC contracts, right? I have to question the legality of adding a fee post-facto.

 

[disneylandtour]

This fee immediately diminishes the value of existing DVC contracts, right? I have to question the legality of adding a fee post-facto.

I think I could get more behind this fee if I knew for certain it would take some upward pressure off general MFs for existing members. If it's just another money grab, then, yeah, it sucks. If it's a way to prevent current members from paying for the costs associated with contract transfer (and hey, maybe this should be $100, not $500), I'm slightly more sympathetic. But the the amount ($500) makes it feel more like a money grab.

 

[eticketplease]

I’d only be surprised if this evolution doesn’t slowly trim how resale points still qualify for perks.

They have been slowly removing the dvd rentals….

 

[Brian Noble]

The documents are written such that Disney has enormous discretion about what they do when it comes to many things---and some of those things can have negative consequences on the resale value of any particular contract. Adding resort restrictions, for example.

This is one of the reasons why I always give the same advice to people considering a purchase: Assume the resale value will be zero dollars when you are done using it, and only buy if it still makes sense to you. If there is some residual value, consider it found money.

 

[eticketplease]

This is a win-win for Disney. They either get $500 per contract or they get to ROFR the contract and sell the points at a higher rate. I also wondered if these fees would fund the ROFR budget and what that could mean for the future of resale contracts.

You forgot the third win.
Seller pays $500 admin Fee
Disney ROFRs contract
Disney resells points (bonus if they get to change an OKW from 42 to 57)

 

[IDSkinner]

Great thread and input from everyone. Thank you!

While I have no issue, not that it matters, with them charging a fee for the processing of the contract, I do have an issue with the 30-day notice. I have a 175-point contract that went to ROFR on November 17th, and I will likely have mine pushed to close to after January 1, so the $500 fee is too short of a notice in my opinion when the deposit and process was well underway prior to this announcement. A 90-day notice would've been more reasonable and may have caused me to offer a different price and the same goes for the seller at the time.

Update. Wouldn't you know it, my contract passed today, so 15 days. It looks like we should be good to go for December.

 

[juliebee]

You forgot the third win.
Seller pays $500 admin Fee
Disney ROFRs contract
Disney resells points (bonus if they get to change an OKW from 42 to 57)

you know, that is a good point. If the contract specifies that the BUYER pays the $500 fee, then at least DCVM doesn't get both the fee and the ROFRed contract because they'd be on the hook for the $500.

 

[Brian Noble]

Seller pays $500 admin Fee
Disney ROFRs contract

I don't think this is possible. The $500 is only to pay for the transfer to the buyer's account. If that transfer does not happen (because the transferee is Disney) then there won't be a transfer fee. At least, I will be very surprised if there is.

 

[eticketplease]

I don't think this is possible. The $500 is only to pay for the transfer to the buyer's account. If that transfer does not happen (because the transferee is Disney) then there won't be a transfer fee. At least, I will be very surprised if there is.

That is a good point however when Disney ROFRs a contract it honors all of the language, but I’m sure you’re right