New $500 Resale DVC Transfer Fee

[maui22]

If we transfer our deeds to a trust, we now have to pay $500 per deed. Is this correct?

Also, if someone passes away and the deed is transferred to their children, the children have to pay $500 for each deed?

 

[VGCgroupie]

If we transfer our deeds to a trust, we now have to pay $500 per deed. Is this correct?

Also, if someone passes away and the deed is transferred to their children, the children have to pay $500 for each deed?

Great question. I am on the fence about transferring to a trust since many commercial renters also use trusts. But transferring to children in the event of a death I feel should be waived.
Edit I am not on the fence. Trusts should also have to pay the fee.

 

[eticketplease]

I don't think a $500 one-time fee will change a lot of people's minds. It is less than what deluxe resorts usually charge per night, or about 6 month's worth of dues on a 150 point contract. The resale market will still be robust, but yeah it will take a marginal hit.

Hey now!! said the CFW owner

 

[eticketplease]

If we transfer our deeds to a trust, we now have to pay $500 per deed. Is this correct?

Also, if someone passes away and the deed is transferred to their children, the children have to pay $500 for each deed?

I don't think so since that would not be considered a sale.

 

[Tatebeck]

The way it reads I do NOT think it will apply to retitles/gratuitous transfers. It specifically talks about reselling the contract and retitling/gratuitous transfers are by definition not selling as there is no money changing hands

Another way to think about it is "would this contract (if it was direct/grandfathered) lose it's benefits in this transaction? If yes then it would incur the fee. If not, then I don't think it will incur the fee

Anyone buying directly into a trust would pay it, and anyone selling out of a trust would too. So it would still hit the commercial renters who strip and flip for a total of $1,000 for each strip and flip

 

[SL6827]

Isn’t another way of looking at it that they increased the cost of studios and decreased the cost of 1 bedrooms?

If I remember correctly, it wasn't just that. It was the fact that they were being able to create more points for themselves out of the deal.