New $500 Resale DVC Transfer Fee

[airjay75]

Are all the associated costs of flipping a resale coming out of the 12% management fee in our membership dues?

My understanding of what makes this fee legal for DVD is that those expenses were not being covered from our dues… that DVD was absorbing this cost and have now decided to start charging for it come 1/1/26.

Well if that's true, then someone should sue them so they have to prove that.

"Management Fee - Fee paid to DVCM for providing management services to the Association according to the Property Management Agreement. The fee is equal to 12 percent of the total Operating and Reserve Budget exclusive of real estate taxes, transportation fees and the management fee, itself." (From 2025 Annual Meeting Notice)

So, in theory, seems like that fee could not really be adjusted to pay for any increased expenses associated with resale contract transfers because none of the line items in the Operating or Reserve Budgets would be on account of that expense because it is not an expense of the association per se. Maybe you could squeeze it into "Administration and Front Desk" or "DVC Reservation Component" but seems like a stretch to me. So, I think that's how you say that no one is really paying money to process resale transfers currently and that DVCM is basically doing it for free.

I can buy the rationale that there are so many resale transfers, they need more support (employees, software enhancements, etc.). And, since they can't charge the associations, seems fair to charge the seller/buyer. And, if an ancillary benefit of that is faster processing times, that is great too. What I don't personally buy is that $500 is a fair and reasonable charge for that service. There will be profit (fine, I expect that) but, probably more what DVC cares about overall, is another thing (albeit small) that makes resale less attractive. I think what will be most telling is how fast and how often they raise it.

 

[eticketplease]

Plus, this is a buyer closing cost. Meaning, those buyers are not yet “owners” for that deeded interest and therefore, contract most likely doesn’t yet apply.

It would be nice if there was a discount to those who are owners and are adding on the same use year and deeded in exactly the same manner so no extra membership needs to be created but we know that is not happening.

 

[Chili327]

It would be nice if there was a discount to those who are owners and are adding on the same use year and deeded in exactly the same manner so no extra membership needs to be created but we know that is not happening.

Maybe if you pay for MMB??

 

[BeachClub2014]

It would be nice if there was a discount to those who are owners and are adding on the same use year and deeded in exactly the same manner so no extra membership needs to be created but we know that is not happening.

To be fair, those owners are already on the plus side against DVC by a wide margin in buying resale over direct, so it's hard to begrudge DVC for getting a fee to process the transfer.

 

[Sandisw]

It would be nice if there was a discount to those who are owners and are adding on the same use year and deeded in exactly the same manner so no extra membership needs to be created but we know that is not happening.

Well, there is no discount for current owners adding on direct. You pay the same for closing costs and if you split contracts into smaller amounts you pay an additional fee.

As I mentioned earlier, when I bought direct in 2009 and in 2012, they didn’t charge closing costs at all.

Now, they do…things change. And by next year, buyers of resale will simply accept this as part of the process.

I think you will see more negotiation for small contracts with buyers asking for the seller to pick up some of the fee.

But for your brand new resale buyer, who wasn’t looking before 2026, it will be just the cost of buying.

 

[eticketplease]

Maybe if you pay for MMB??

If you are an existing resale only or even a direct international owner you wouldn't qualify though.

 

[muppets3d]

They are funded in part by our dues to cover property management and operations of the vacation plan.

There is nothing I can find yet that shows this is part of what we hire them to do already. So, until someone finds evidence to the contrary, this work is not covered in our dues.

Plus, this is a buyer closing cost. Meaning, those buyers are not yet “owners” for that deeded interest and therefore, contract most likely doesn’t yet apply.

They are also funded by DVD, by cash rentals, OTU point sales, and breakage above and beyond the 2.5% we get.

How is managing the deeds not considered operations of the vacation plan?

 

[AstroBlasters]

@AstroBlasters That was my thinking as well however the boards sponsor Monera offers refinancing so if the loan was refinanced that should allow a new owner to be added. You of course would certainly want to check the rates before pursuing that course of action.

This person has a loan with Disney at around 9%…. I’m guessing Monera would be substantially higher….

 

[Sandisw]

How is managing the deeds not considered operations of the vacation plan?

Because it’s not…the vacation plan relates to the booking process, point charts, and things like that.

It’s for managing things when owners use the membershi

The property management relates to operating the resort…which we, contract to WDW parks and resorts…maintaining the records of the association and things of that nature.

It’s defined in the POS what duties fall under the vacation plan duties.

The transferring of ownerships does not have to do with DVcMcs duties as the managing entity for the program.

It’s like what they do for DVD with direct sales. We don’t pay the MA department to process and work on that.

 

[eticketplease]

This person has a loan with Disney at around 9%…. I’m guessing Monera would be substantially higher….

I'm sure you are right. Since it is with Disney directly though they might be able to add them to the deed and to the existing loan. I think it's worth a shot for them to call MA and see if they can do anything. With any luck it is a yes and just a small processing fee.

 

[CarolynFH]

a regular time share that people have to pay a company to give away

No one should ever, ever pay anyone to get rid of their unwanted timeshare. Not one of these companies does anything that the TS owner can't do on their own for free, and any money the owner pays them is just money down the drain. For more details, read this article from TUG - https://tug2.net/timeshare_advice/timeshare-exit-cancellation-company-strategy-secrets.html.

 

[DanCali]

I don’t like this fee, but also not concerned it’s a harbinger of DVC turning into the crappiest timeshares where not even death makes separation easy from the useless financial burden.

View attachment 1030143

$1.4 billion sold multiplied by 9.5% commission = $133 million dollars

That is just ONE broker! Big money floating around the product inside DVD’s sandbox. All this turnover was happening while DVD got goose egg $0. Now they get $500 a pop. Seems a rational decision.

Eta - The math also works out to average $1,900 commission per resale contract.

Being relatively new to DVC, and having started out with Westin and Marriott timeshares, I don't necessarily get why it works that way.

We own several Marriott/Westin deeded weeks and bought most of them directly from sellers listing on Redweek. I did hire an escrow company that handled the money and helped with a resale contract for a total cost of $350-$400 plus the cost of optional title insurance. Those companies also advertise that they handle DVC closings, but of course you also have the closing companies that specialize in DVC that are discussed here in various threads. You need the escrow but I'm not convinced that the 9.5% is compensated for getting a higher resale price when also using a broker.

If I were ever going to sell some of our DVC contracts, I'd definitely try to do it that way first, especially if Redweek still has DIY listings for resales with just a flat listing fee (rentals are now "full service" listings only).

 

[muppets3d]

Yes, just one step closer to a regular time share that people have to pay a company to give away… That is the extreme, but DVC is certainly headed that direction. For now we’ll just keep enjoying the points we have.

Outside of the scope of this discussion but you don't have to pay to get out of timeshares - there is a lot of misinformation in this space, largely because of the high-pressure sales tactics that both the timeshare developers and timeshare exit companies often employ.

Basically all they do is charge you money and instruct you to change the contact information for your timeshare from you to them. Then they take care of ignoring the phone calls for you.

Unless you have a mortgage, you can just walk away from a timeshare...of course, nobody in the industry will ever tell you that.

(And nobody should ever walk away from a DVC contract because even the "worthless" ones like CFW and VB still have value on the resale market).

 

[Cfabar1]

This just arrived in an email from Fidelity...

"Beginning January 1, 2026, Disney Vacation Club will implement a new $500 Contract Administration Fee for buyers of DVC resale contracts. Purchasing before December 31, 2025, means you’ll avoid this fee entirely and secure the best possible savings on your resale purchase. Our team is actively helping buyers secure the best DVC resale deals before this change takes effect, and we want to help you, too. To avoid the new fee, your executed contract needs to be submitted for ROFR by December 31, 2025, so don't wait."

This is not exactly how I've been reading this.

How ironic that a vendor known for it's own ridiculous junk fee is now sending an email announcing another company's new, (albeit slightly less ridiculous than Fidelity's), ridiculous junk fee...

 

[mkatsy]

How ironic that a vendor known for it's own ridiculous junk fee is now sending an email announcing another company's new, (albeit slightly less ridiculous than Fidelity's), ridiculous junk fee...

Can you imagine the jubilation in the board rooms at Marriott and Wyndham et al. “welcome to the dark side DVC” … we’ve got cookies … and junk fees!

 

[HyperspaceMountainPilot]

Does this apply to Quit Claim Deeds or other title transfers?

No. The new Contract Administration Fee does not apply to Quit Claim Deeds or other internal title adjustments. If you are adding or removing an owner such as a family member, and at least one original owner remains on the contract, Disney Vacation Club will not charge the fee.

To me, this suggests it’s not legitimately about covering expenses, and is focused on punishing/monetizing resale, because these other transactions would have comparable costs for Disney.

I don’t think it’s the actual $500 right now. It’s that the door has been opened to the slimy time share behavior. So now, something that was never even a concern when buying DVC, could possibly become a trust issue (there’s that goodwill ) for some people.

This is my feeling, it’s only one step towards devaluing my contracts, but it’s an ominous one. DVD is willing to shake the money tree in yet another way that decreases the value of my resale points if I ever want to exit.

I see it frequently stated here on the Dis that the "average" DVC (direct) purchaser is ignorant of the resale market. If that belief is true, then there's no impact on those buyers by this fee.

Even if it is true for the majority of direct purchasers, it is not true for many of us hybrid owners, who have purchased additional direct contracts even after discovering these boards for various reasons. I would guess a material chunk of the direct points purchased each year are purchased by existing owners and many of us feel confident enough to add another 50-300 direct points here and there (often split into smaller contracts) because we know that DVC points have generally held value at least well enough to keep up with inflation—but that has not been true for a few years now…and DVC is now adding a new fee that will at least marginally depress prices at resale.

I also think that many here who bemoan that "DVC is becoming just another timeshare" forget that DVC is just another timeshare. As much as we may love it, and I do, it really is just a timeshare.

It’s not “just another time share”— that is evidenced by the relative pricing trajectory of Disney vs the average timeshare.

Are all the associated costs of flipping a resale coming out of the 12% management fee in our membership dues?

My understanding of what makes this fee legal for DVD is that those expenses were not being covered from our dues… that DVD was absorbing this cost and have now decided to start charging for it come 1/1/26.

I agree they should be able to cover costs, but I’d be surprised if their costs were much above $50 per contract, and, as I noted above, they aren’t even charging it for many other comparable transactions.

 

[Carouselofplanning]

Anyone going to the meetings tomorrow. Get to bed soon - we need you fresh in there tomorrow!

 

[Cfabar1]

Anyone going to the meetings tomorrow. Get to bed soon - we need you fresh in there tomorrow!

so disappointed I decided a month ago not to go... thought "doesn't seem like there will be much to talk about"...

 

[Mikey15]

No one should ever, ever pay anyone to get rid of their unwanted timeshare. Not one of these companies does anything that the TS owner can't do on their own for free, and any money the owner pays them is just money down the drain. For more details, read this article from TUG - https://tug2.net/timeshare_advice/timeshare-exit-cancellation-company-strategy-secrets.html.

Very true.

I do think at some point someone referenced fees to “deed back” a timeshare to the resort (like a voluntary foreclosure with or without the baggage), which is technically legitimate and very different from the “timeshare exit” type scammers, even if it’s still frustrating.

 

[Chili327]

If you are an existing resale only or even a direct international owner you wouldn't qualify though.

Pushing hard on resale and towards direct…Just another nail in the DVC value coffin. lol

Honestly, I’m just poking fun at how much they are trying to ruin their own product, this fee won’t stop me from buying another contract whatsoever.