New $500 Resale DVC Transfer Fee

[Sandisw]

It’s not a transfer fee, they specifically call it a Contract Administration Fee. In no world would their lawyers have not made sure this thing wasn’t bullet proof before implementing it.

That’s a good point and now it makes me wonder if the $150 estoppel fee they charge will be inclusive of this and not in addition to it?

I agree that there is no way that to didn’t get vetted as to something that it allowed.

 

[drusba]

It’s not a transfer fee, they specifically call it a Contract Administration Fee. In no world would their lawyers have not made sure this thing wasn’t bullet proof before implementing it.

The statute provides that "No charge shall be made by the association or any body thereof in connection with the sale" of the condominium interest. And that means what it says. If the charge is identified as one being made "in connection with the sale," which DVCM's charge is, it is prohibited regardless of what clever rename DVCM or its lawyer tries to give it.

 

[gvel]

The statute provides that "No charge shall be made by the association or any body thereof in connection with the sale" of the condominium interest. And that means what it says. If the charge is identified as one being made "in connection with the sale," which DVCM's charge is, it is prohibited regardless of what clever rename DVCM or its lawyer tries to give it.

I hope you're right but somehow doubt Disney lawyers would mess this one up so badly. If this is the case someone in legal is surely getting fired.

 

[TheDailyMoo]

I don't know this just feels short sighted by Disney brass yet again. Sure this'll net them revenue but everything lately just keeps leaving sour tastes in more and more customer's mouths. Eventually Disney's customers will have no feeling left on their tongues! But I'm sure this'll stick just like how Verizon and other carriers charge an upgrade/activation fee when you get a new phone. There is absolutely nothing extra of substance for them to do to swap the service from your old phone to your new phone yet...here we are.

And I think what everything boils down to is...charge us...go ahead....raise prices fine. Just give us service and maintenance that is commensurate with said money grabs.

 

[Carouselofplanning]

I hope you're right but somehow doubt Disney lawyers would mess this one up so badly. If this is the case someone in legal is surely getting fired.

I step away from this board for one day and all hell breaks loose. Remember the simpler times when we were just complaining about the new annual meeting format? Those were the days!

 

[AstroBlasters]

I don't know this just feels short sighted by Disney brass yet again. Sure this'll net them revenue but everything lately just keeps leaving sour tastes in more and more customer's mouths. Eventually Disney's customers will have no feeling left on their tongues! But I'm sure this'll stick just like how Verizon and other carriers charge an upgrade/activation fee when you get a new phone. There is absolutely nothing extra of substance for them to do to swap the service from your old phone to your new phone yet...here we are.

And I think what everything boils down to is...charge us...go ahead....raise prices fine. Just give us service and maintenance that is commensurate with said money grabs.

It won’t impact people who are buying direct or who aren’t selling their points…. which in any given year is the overwhelming majority of the membership.

If you are thinking about buying or selling resale and have not pulled the trigger yet…. yeah…. no fun…

 

[Happily-Ever-After]

Gosh, Disney... So if you sell a 25 AK contract for $125, you’ll gross $3,125. You’ll pay $313 in commission, $500 for contract administration, and $150 for Estoppel. 30% gone. There is no way their costs are $500 per contract for administration. Another money grab and another way to stick it to resale.

 

[Genie+]

I step away from this board for one day and all hell breaks loose. Remember the simpler times when we were just complaining about the new annual meeting format? Those were the days!

I too remember the simpler times, like when the Skyliner opened Fall of 2019.

Endless threads discussing a wide array of doom predictions. Then Spring 2020 happened. We all forgot how bad skyliner was supposed to turn out!

 

[Sandisw]

The statute provides that "No charge shall be made by the association or any body thereof in connection with the sale" of the condominium interest. And that means what it says. If the charge is identified as one being made "in connection with the sale," which DVCM's charge is, it is prohibited regardless of what clever rename DVCM or its lawyer tries to give it.

Since DVCMC is the one handling this, it’s not really the condo association charging the fee is it?

Could that make a difference? We get charged a fee for estoppel when selling? Wouldn’t this be similar? Paperwork?

 

[DanCali]

This is huge. Specially for contracts under 100 points. I think this will effectively kill the market for VB and HHI. They are just trying to find creative ways to narrow the gap between resale and direct.

Seems like you're assuming that nothing else will change when you say that. Most likely this will further decimate resale prices just like the restrictions are doing. If that happens, it's more profit for DVC from the "junk fee" and more profit for DVC from buying lower at ROFR and expanding margins.

Seems like another thing they picked up from Marriott... why couldn't they adopt the resale contract washing program instead?

By the way MVC charges an initiation fee of $3 per MVC resale point (min $3000), and a $300 education fee for first time Marriott Destination Club Points Owners. In that system, owning 3000 points is kind of a bare minimum to be able to function, so that resale initiation fee can be as high as the resale price (which is also around $3/pt) and it's something a buyer never gets back even if they sell a month later.

Back in 2010 when the Marriott points system launched, the initiation fee was $1 and resale prices were $7-$8 (retail was ~$14). As the "junk fee" went to $2 and then to $3 (and maintenance fees went up) resale prices dropped to $2-$3 (retail is now ~$18/pt). So resale prices went from 50% vs retail to less than 20%... I don't think DVC will fall that much, but this can't possibly help resale prices.

 

[airjay75]

That’s a good point and now it makes me wonder if the $150 estoppel fee they charge will be inclusive of this and not in addition to it?

I agree that there is no way that to didn’t get vetted as to something that it allowed.

https://disneyvacationclub.disney.go.com/faq/reselling/resale-process

I am increasingly thinking that this new $500 fee is replacing the current $150 estoppel fee. This is another FAQ on the DVC website that is a bit more comprehensive answer about the resale process. If the $150 fee remains in addition to the $500 fee and they did not include that in this FAQ, that is some pretty sloppy work by their lawyers. And I say this as a lawyer who routinely assists with drafting these sorts of things (albeit in a much different context).

I'll repeat something I said earlier - if we're only talking a $500 fee (not a combined $650) and we continue to see these quick turnarounds on contract transfers, this could turn out to be something more akin to a nothing-burger than something that meaningfully impacts the resale market. That said, if that is what we're looking at, this was also a great example of a very poor corporate communication rollout IMO. Could easily been announced as a, yes, we're raising the costs to transfer your contract, but we're planning to provide much better service going forward to ensure you have the best experience possible. Maybe that's what we'll hear in the coming weeks. And, I suppose any hostility will be largely forgotten over time.