New $500 Resale DVC Transfer Fee

[DebbieB]

I’m selling 2 contracts to pay for my new direct contract, and really going to be threading the needle to get closure by 1/1. Even if we close by 1/1, if Disney hasn’t done their part by then, does it count? Do we have a fee to pay? I feel a little annoyed.

If they have been submitted for ROFR, I don’t see how they can change the terms of the sale. It should be in the contract who will pay it. When they added the resale restrictions, it applied to contracts submitted after x date.

 

[Dodgerburt8]

A lose for us all. Whether we buy or sell, no one is going to want to pay that. Glad im done buying resale. Won't stop people from buying or selling resale though, $500 is still better than an extra 10 grand.

Wonder what other creative way they'll come up with to devalue resale next. More money in their pockets, but a lot of resale people cannot just buy a bunch of direct because the gap is going to keep narrowing.

If all my resales were 30k plus I wouldnt be having all these and buying direct instead anyways. Pretty soon the amount of points to stay in anything other than a studio is going to be for ballers only

Just my opinion, but to me this also devalues direct DVC. Knowing that it’s likely going to cost even higher transaction costs to exit your membership makes me even more reluctant to buy direct. Disney increasingly is making their own product more and more like a typical BS timeshare.

 

[DanCali]

Just my opinion, but to me this also devalues direct DVC. Knowing that it’s likely going to cost even higher transaction costs to exit your membership makes me even more reluctant to buy direct. Disney increasingly is making their own product more and more like a typical BS timeshare.

Totally agree with that. But we are a small minority of members who know and understand resale. Unfortunately, most average buyers don't know there is a resale market.

 

[Girlstar30]

Just my opinion, but to me this also devalues direct DVC. Knowing that it’s likely going to cost even higher transaction costs to exit your membership makes me even more reluctant to buy direct. Disney increasingly is making their own product more and more like a typical BS timeshare.

Agreed, more fees is never good for anyone except the person charging it

 

[Chili327]

Yikes! That's huge on smaller contracts!

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?

What do they currently charge? I guess it is a 0.

I think likely it will just drive resale prices a little lower... Especially small contracts... where between higher closing costs and now this fee, much of the cash savings may be erased.

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

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.

I skipped about 10 pages, but… Just one more step closer to becoming a regular timeshare, just like all the rest that people are deathly afraid of. lol
imo, killing resale, is killing what makes DVC different. First it was the restrictions, now more fees, next the fees just go up and ruin all the value.

Just wait until they have a closing lighting lane option for another $250

Haha, no, seriously though. lol

 

[Moonspinner]

I’m wondering if they are trying to stop entities from buying, stripping, and flipping contracts?

 

[zavandor]

It's an hobby of mine to remind the world what happened in 2019. DVC published a point chart that increased the lockoff premium and reallocated points across units.
The general consensus was that Disney has an army of lawyers, so it would certainly be legal and it would be futile to fight it.
And yet a handful of members fought it and the changes were rolled back.

So at least one of the following is true:
- Disney doesn't have an army of lawyers
- lawyers are not consulted for every decision
- the lawyers are incompetent
- the lawyers warn management of the risks of a certain decision but greedy management do it anyway

So thinking this fee is legal just because Disney has lots of lawyers is not wise.

 

[smileyanna]

On a positive note, I can finally say “I’m glad I bought my contract back in the good old days, before <horrible new conditions for resale> were implemented!”

I maintain that the agents/brokers/title will absorb a small portion of this cost over time. A first time seller will call DVCRM or wherever, and the list of fees will be enough for some of them to decide to shop around first. This is a tax on volume/turnover.

 

[SL6827]

It's an hobby of mine to remind the world what happened in 2019. DVC published a point chart that increased the lockoff premium and reallocated points across units.
The general consensus was that Disney has an army of lawyers, so it would certainly be legal and it would be futile to fight it.
And yet a handful of members fought it and the changes were rolled back.

So at least one of the following is true:
- Disney doesn't have an army of lawyers
- lawyers are not consulted for every decision
- the lawyers are incompetent
- the lawyers warn management of the risks of a certain decision but greedy management do it anyway

So thinking this fee is legal just because Disney has lots of lawyers is not wise.

Yep. I always thought that was one of the dirtiest moves by DVC. It also really made me wonder how honest they were with thier dues.

 

[MyDogTink]

Could the transfer fee be required by Buyer when DVC gives the link and code for new membership fee? For existing members, could DVC send an email prior to loading the points requiring the fee? This would eliminate interaction with the resale agent. Just throwing this thought out there.

Also, didn’t DVC just lower the minimum # of points for add-ons? Wonder if this is folded into the transfer fee concept?

 

[Cfabar1]

Could the transfer fee be required by Buyer when DVC gives the link and code for new membership fee? For existing members, could DVC send an email prior to loading the points requiring the fee? This would eliminate interaction with the resale agent. Just throwing this thought out there.

Also, didn’t DVC just lower the minimum # of points for add-ons? Wonder if this is folded into the transfer fee concept?

It could, but what happens if the buyer never logs in or pays the fee? Who "owns" the points?

 

[eticketplease]

Also, didn’t DVC just lower the minimum # of points for add-ons?

Yes, they recently lowered the number of points at the newer resorts to match the old resorts. You can now add on at all resorts with the minimum of 25 points in cash.