New $500 Resale DVC Transfer Fee

[mkatsy]

My understanding is that it has always been that way. If you have sections of the division that handle work for different tasks, some that are related to the program, like dues, and such, and others are not, like the servicing of loans, etc., then they can decide how to cover those. Similar to how a share resort functions....each gets charged their share....

It is why MS CM's can handle booking of special events for things like MM becaues they are funded by both dues and DVD.

Bas on what I have gathered, DVCMC LLC gets their earnings from different sources.

They earn the 12% of the operating budget for each association, they earn money from rentals from their points, they earn money from DVD to handle their adminstrative tasks, and they get money from breakage. Its possible they get funding from others as well.

As I have mentioned, DVCMC does not have to account for how they spend our 12%....they just have to provide us with the service that is contracted for.

I am in the process of trying to find my hard copy of the property management agreement, just to see what it says. But, if there is nothing in there that says that we are paying them already for whatever they are charging for....and we are still waiting to get more information on exactly what it is.

Could they simply continue to do it like always? Yes, but it means the cost comes out of their earnings and why would they do that? Why would they take on the extra costs for something they are not contracted to do....assuming I am correct in that the property management agreement does not already list this as a responsbility for them.

All of this is assuming that the statute that was brought up does not apply....which, as I said, I am leaning toward it not because its not the association instituting a fee....and its not really much different than the title companies charging for their role in the process, other than its DVCMC. But, that would be a legal issue for others to figure out.

Let's be honest....DVCMC isn't going to increase thier costs to reduce their profit unless they are obligated to do it. Obviously, up until now, the cost to do this has been rolled into DVCMC's budget....for whatever reason, they now plan to charge for the work.

Im not concerned about the 12% fee, and I'm not asking anyone to work for free, I certainly don’t. The question is ONLY the rate they are charging for their services … it is exorbitant and it feels like extortion because the product is useless unless they are paid.

 

[Sandisw]

I probably wasn’t clear. I’m not talking about the 12% flat rate we pay. I’m talking about the new $500 fee for 1/2 hour (at best) of work to change the name on an account. It feels incestuous that the people we pay to represent our interests, agreed to a grossly inflated fee, that the other entity they represent benefits from. They dismissed our fiduciary interest to favor the fiduciary interest of their other client.

I get that people think its an over charge, but one has nothing to do with the other. That was my point. If we don't contract with DVCMC to handle the adminstrative work once an ownership has changed hands, then I don't see that they have a fiduciary responsiblity to us in this case.

That is why I said this is so difficult because with DVC, everything is intertwined, but they do run seperately.....they wear different hats, and we, as owners, are stuck with that.

I guess I see it as something completely different. They are doing X work....and up until now, they didn't charge the owner for the work directly....they charged it against something else....now, they have decided that the parties to the contract have to pay it...whether that be buyer or seller....don't know.

I mean, someone decided way back when that we would be paying a 12% flat fee....where did that come from? DVCMC gets to do with that what they want....they don't have to account for how they spend it.....and for all we know, they could do the job for a lot less...but, that is not what we contracted for and are stuck.

So, for me, and what I will ask, is to expand on what this fee is for and to ask for clarification why it wouldn't already be covered through the 12% management fee we already pay....

 

[Sandisw]

Im not concerned about the 12% fee, and I'm not asking anyone to work for free, I certainly don’t. The question is ONLY the rate they are charging for their services … it is exorbitant and it feels like extortion because the product is useless unless they are paid.

Unfortunately, that is the way life is and businesses get to charge what they want. Many say the % that resale brokers charge to sell contracts is too high for the work they do, or the amount of closing costs buyers have to pay for title companies to handle the sale, etc. and on and on.

So, while $500 is a pretty steep price, and maybe they should charge less, they get to decide what they charge. Now, owners who are bothered by this amount should defintiely be contacting DVC and sharing their thoughts....

 

[walt34]

Unfortunately, that is the way life is and businesses get to charge what they want. Many say the % that resale brokers charge to sell contracts is too high for the work they do, or the amount of closing costs buyers have to pay for title companies to handle the sale, etc. and on and on.

So, while $500 is a pretty steep price, and maybe they should charge less, they get to decide what they charge. Now, owners who are bothered by this amount should defintiely be contacting DVC and sharing their thoughts.....

Well, the difference is that I am free to use or not use a resale company (if I don’t like their fees) while as an owner, who is now suddenly affected by this fee, I have to accept the resulting loss in value and cannot avoid it.

 

[mkatsy]

Unfortunately, that is the way life is and businesses get to charge what they want. Many say the % that resale brokers charge to sell contracts is too high for the work they do, or the amount of closing costs buyers have to pay for title companies to handle the sale, etc. and on and on.

So, while $500 is a pretty steep price, and maybe they should charge less, they get to decide what they charge. Now, owners who are bothered by this amount should defintiely be contacting DVC and sharing their thoughts....

Brokers and title companies are optional services that people (myself included) choose for their expertise in navigating a complex process. With the correct education, you can accomplish both tasks yourself. I cannot change the name on the contract in the Disney system myself. I cannot hire a third party vendor to change the name on the contract in the Disney system for me … Disney has a monopoly, our product is useless without their participation, and they have begun to shake the money tree