New $500 Resale DVC Transfer Fee

[AstroBlasters]

I feel the worst for people who split their contracts for no reason except to make them easier to sell.

4x50 will still sell a lot easier than a 1x200 pt contract.

 

[RivShore]

I’m sorry, what now???

LOL! Welcome to the fray!

 

[Cfabar1]

Well said!!

I would forward this exact message to DVC.

They don't care.... Their view is the parks are full, profits are up, and the people in the 90s had it too good... (Just like Eisner felt those who had it in the 80s and 70s had it too good!)

That said, I want my three ring binder with the floor plans!

 

[Sandisw]

A few more tidbits that I found....not sure I really knew either.

DVD retains control of the assocations. once the majority of the resort is sold.

And, the board controlled by DVD can give their approval to increase the % of the management fee paid to DVCMC...so, techinically, it can go higher than 12%. Could this, in some way be used by the board to say they approved DVCMC to charge a CAF?

For example, could they say that in lieu of an across the board increase in the %, the board voted to allow DVCMC to simply collect a straight $500 CAF so it’s charged to the buyer/seller and not an increase for all owners?

Definitely language in the POS that allows the board to authorize to pay DVCMC more money....not saying it applies in this instance, but I never realized that the board could increase the management fee from 12%

 

[Steelers0854]

I don't agree with this statement.

They either have a fiduciary duty toward the members, in which case, if they are allowed to charge a fee, it should be only to cover expenses.
Or they don't, in which case if the law doesn't prohibit it, they can charge whatever they want (even 10K).

But one cannot claim they are acting in the interest of the membership when they stand to gain a couple of millions per year doing this (assuming 500K is more than enough to hire a few CM to handle the transfers)

But this fee doesn’t apply to members, so by doing this they are acting in the best interest of members, by essentially generating revenue from people who are no longer members (selling) or are not quite members (buying).

Look, at the end of the day if Disney has decided they need to make more money they are going to do it somehow. Im totally fine with this as it doesn’t affect me, today. I have always considered my investment in DVC as a sunk cost, anything I get above $0 if i decide to sell (which we don’t intend to do) is icing on the cake. I would rather see this than an increase in maintenance fees.

 

[mkatsy]

A few more tidbits that I found....not sure I really knew either.

DVD retains control of the assocations. once the majority of the resort is sold.

And, the board controlled by DVD can give their approval to increase the % of the management fee paid to DVCMC...so, techinically, it can go higher than 12%. Could this, in some way be used by the board to say they approved DVCMC to charge a CAF?

For example, could they say that in lieu of an across the board increase in the %, the board voted to allow DVCMC to simply collect a straight $500 CAF so it’s charged to the buyer/seller and not an increase for all owners?

Definitely language in the POS that allows the board to authorize to pay DVCMC more money....not saying it applies in this instance, but I never realized that the board could increase the management fee from 12%

View attachment 1029465

How much is each 1% increase? …after all this, it might be cheaper to take the fee

 

[Sandisw]

How much is each 1% increase? …after all this, it might be cheaper to take the fee

Based on my napkin math, it seems the CAF definitely is a better way to go. Lol

Especially since a % increase would be for everyone as part of dues! At least this fee only will apply to those who buy/sell.

ETA: for giggles…a 1% increase for RiV would be $380k…use as an average, multiple that by the number of resorts of 17 and we are over $6 million!!!

 

[Sandisw]

Another question that I thought of. We have the proposed budgets out but they are not final until approved.

Could the board decide next week to propose an amendment to add this in some way during that process?

 

[mkatsy]

Based on my napkin math, it seems the CAF definitely is a better way to go. Lol

Especially since a % increase would be for everyone as part of dues! At least this fee only will apply to those who buy or sell.

Pivot! I will happily take the fee over a flat rate increase, which I also did not know was possible.

 

[mkatsy]

Another question that I thought of. We have the proposed budgets out but they are not final until approved.

Could the board decide next week to propose an amendment to add this in some way during that process

Which resort meets first?

 

[Sandisw]

Which resort meets first?

I think it is RiV, 8:30 am then VGF at 9:30 am. I plan to attend both.

 

[VGCgroupie]

I feel the worst for people who split their contracts for no reason except to make them easier to sell.

I would be one of those people.

 

[airjay75]

I have thought about whether I regret breaking up my 600 direct points (all RIV) in light of these developments. I have 2x150, 2x100, and 2x50 (and, if they had let me, would have had 2x150 and 6x50). I don't regret it. It is still very nice to have different size contracts if I ever decide to sell - even if I no longer get a premium for the smaller contracts. It gives a lot of flexibility. And, I suspect smaller point contracts will continue to be easier to sell (even if they might not fetch as much of a premium) simply because the lower total cost will appeal to more buyers.