New $500 Resale DVC Transfer Fee

[Sandisw]

So due to ROFR there is no real way to avoid this with a new resale contract at this point.

Initially I didn't think much of it, but now I'm upset. This is a ridiculous and bogus punitive fee. Also, the amount. They went from $0-$500. That is substantial for something that should already be covered on the back end by dues through member services. Will this new revenue be used to better fund member services or maybe reduce dues? ... I already know the answer to these questions but I'm just venting.

I can definitely understand the frustration but dues cover the operating costs for the program.

DVCM does get a set fee to manage the program but while MA is under the umbrella, the task of transferring the deeds it different.

At one point, years ago, DVD didn’t even charge closing costs to buy direct…and now they do when selling contracts.

With resale, the title company gets the money via closing costs to handle it…so I can see why they decided to charge given the volume of resales they handle.

It’s definitely going to change the math.

 

[airjay75]

I’m just wondering how this is worked into the contract. Mine is in the ROFR process now. Doubt it’s going to close by then, so are we gonna have to adjust the contract? An addendum?

This could get a little tricky. I don't think resale purchase contracts address surprise fees imposed by Disney to transfer the contract. If you're already in ROFR, you'll presumably pass ROFR before 1/1/2026, so just depends on whether you can get it closed before 1/1/2026. Might be worth a call to the broker and title company sooner rather than later. If you pass ROFR well before 1/1/2026, I'd probably take the position that if the seller can't get their docs back in time to close, they're paying the $500. If ROFR doesn't come back with enough time, maybe you agree to split it 50/50 with the seller.

 

[Sandisw]

This could get a little tricky. I don't think resale purchase contracts address surprise fees imposed by Disney to transfer the contract. If you're already in ROFR, you'll presumably pass ROFR before 1/1/2026, so just depends on whether you can get it closed before 1/1/2026. Might be worth a call to the broker and title company sooner rather than later. If you pass ROFR well before 1/1/2026, I'd probably take the position that if the seller can't get their docs back in time to close, they're paying the $500. If ROFR doesn't come back with enough time, maybe you agree to split it 50/50 with the seller.

Legally, a seller has until closing to get them back. You can’t force a fee on them for something they have a legal right to.

It is possible that DVD will clarify and have this apply only to contracts dates 1/1/2026 and later.

IIRC. When they changed the resale restrictions, contracts that were already submitted to ROFR, even if not closed, were exempt.

Maybe @pkrieger2287 has insight?

 

[airjay75]

It’s definitely going to change the math.

Yeah. My mind immediately went to the following:

50-pt contract: $500/50=$10.00/point
100-pt contract: $500/100=$5.00/point
150-pt contract: $500/150=$3.33/point
200-pt contract: $500/200=$2.50/point

I think one could argue that correlates roughly to the premium small point contracts currently get over larger point contracts. Will be interesting to see if this has an effect on the higher price smaller point contracts tend to fetch on the resale market.

 

[pkrieger2287]

Legally, a seller has until closing to get them back. You can’t force a fee on them for something they have a legal right to.

It is possible that DVD will clarify and have this apply only to contracts dates 1/1/2026 and later.

IIRC. When they changed the resale restrictions, contracts that were already submitted to ROFR, even if not closed, were exempt.

Maybe @pkrieger2287 has insight?

Absorbing a lot of this in real time, but my understanding is that no notices have been provided on this to resale or title companies. Unfortunately at the moment there are just lots of questions and few answers... but this is very common in the timeshare industry. As others have stated, we're just going to have to wait and see the overall affect it has on value.

 

[pkrieger2287]

I just checked and no changes to the HRR document.

But, I can’t seem to find under the FAQ anything about rentals any longer.

Maybe I’m missing it? Or not looking in the correct place.

Link seems active still: https://disneyvacationclub.disney.go.com/faq/points/renting

 

[airjay75]

Another question. Is this $500 a change to the current $150 estoppel fee or an addition to that fee? I don't think I've ever heard about the $150 estoppel fee being negotiated in a resale purchase contract (although I'm sure it could be). If just an increase to the current $150 fee, not quite as bad of a hit to would be for resale buyers/sellers if it is an addition to the $150 estoppel fee.

 

[Sandisw]

Link seems active still: https://disneyvacationclub.disney.go.com/faq/points/renting

Thanks! And I was able to find it and where it was!

Yup, just me missing it!!! Lol

 

[Sandisw]

Another question. Is this $500 a change to the current $150 estoppel fee or an addition to that fee? I don't think I've ever heard about the $150 estoppel fee being negotiated in a resale purchase contract (although I'm sure it could be). If just an increase to the current $150 fee, not quite as bad of a hit to would be for resale buyers/sellers if it is an addition to the $150 estoppel fee.

The estoppel fee is charged to the seller. My guess is this is an additional charge