New DVC Rules for 2013?

[Mr. X]

I heard through a friend that purchased DVC points directly from Disney that folks that purchase resale will, soon in the near future, only be allowed to use their points to book a room at their "home resort" only.

Does anyone know if this is true?

 

[erionm]

No new resale restrictions have been announced by DVC, so anything you hear will just be rumors.

 

[Mommy2TwoMickeys]

Curious that if this happens, the people that already bought a resale will be "grandfathered" in to still use pts at other resorts?? I would assume so since in the purchase contract signed it states that. Just like the new contracts state that you can't use pts at NON DVC resorts etc, but people that bought a resale before this went into effect still can

 

[bighoo93]

I heard through a friend that purchased DVC points directly from Disney that folks that purchase resale will, soon in the near future, only be allowed to use their points to book a room at their "home resort" only.

Does anyone know if this is true?

No, nobody knows if it is true. However, it has been alleged for about as long as anyone can recall, and it has always proven to be false before. But that doesn't mean that it can't be true the next time, so people will never stop perpetuating and hearing these rumors.

 

[nalajms]

There were discussions of this in a prior thread. I don't remember exactly where, but someone will post the link.

Anyways, someone pointed out that it would be very difficult and possibly illegal for DVC to put that restriction on only resale contracts. If they changed that rule, it would apply to all direct and resale contracts sold or to be sold in the future.

 

[Missyrose]

The best argument I've heard people make for why this cannot functionally happen is that if you have a chunk of resale buyers who are restricted to their home resort and their home resort is an in-demand resort, it will make it difficult for direct buyers to get in at seven months.

 

[DisneyDiana]

Do a search for this topic and you will see the same rumor being discussed and perpetuated for years back. I agree with Missyrose. I think it would cause definite reservation issues for everyone, including direct buyers.

 

[chalee94]

I heard through a friend that purchased DVC points directly from Disney that folks that purchase resale will, soon in the near future, only be allowed to use their points to book a room at their "home resort" only.

it's not impossible that it could be true.

but generally, it's a sales trick to convince suckers to pay extra to buy direct.

 

[Sandisw]

I'm trying to figure out a way they could do it, without completely dismantling the club. The POS states that as long as a resort is part of the club, you can trade out so they'd have to remove the resort, which would remove all owners.

Now, they could do that and then make rules for direct points. But, as mentioned, it would become harder to trade all the way around and I just don't see that. I own resale BWV and some BLT points. If I was limited, I'd be fine just staying there. And, as long as that is the only place I can stay, it will limit those not owning there the ability to stay.

 

[Apps]

Not to mention the value of DVC shares on the market will plummet hurting direct buyers who need to sell. Imagine buying BLT for $165 and having to sell at $50 or less!

 

[chalee94]

Not to mention the value of DVC shares on the market will plummet hurting direct buyers who need to sell. Imagine buying BLT for $165 and having to sell at $50 or less!

lots of timeshares still sell contracts directly to people who are not very informed about the resale market. you might buy in for tens of thousands and then turn around the next year and struggle to sell it for a dollar on ebay.

disney has no real interest in protecting the resale value of DVC contracts. if you are forced to sell BLT at $50 per pt, that just gives DVC the option to ROFR the contract and take it back to sell for $165 per pt.

 

[bighoo93]

disney has no real interest in protecting the resale value of DVC contracts.

I agree with this. Anything Disney/DVD does to prop up the resale value is mostly coincidental with their goal of selling direct points. Probably the best thing they can do to help resale value is to ensure a robust direct market that supports increasing prices, which of course is already their goal anyway.

 

[ELMC]

lots of timeshares still sell contracts directly to people who are not very informed about the resale market. you might buy in for tens of thousands and then turn around the next year and struggle to sell it for a dollar on ebay.

disney has no real interest in protecting the resale value of DVC contracts. if you are forced to sell BLT at $50 per pt, that just gives DVC the option to ROFR the contract and take it back to sell for $165 per pt.

Agreed. As with almost all timeshares, the difference between direct and resale prices is irrelevant because a significantly large percentage of direct buyers are unaware of the existence of a resale market. The value of a timeshare is in its use, and that is what the salespeople focus on.

 

[Dean]

I heard through a friend that purchased DVC points directly from Disney that folks that purchase resale will, soon in the near future, only be allowed to use their points to book a room at their "home resort" only.

Does anyone know if this is true?

I do not believe that to be legally possible or even to have a different reservation window retail vs resale. I know there are those that believe otherwise but I feel I have a good grasp of the legalities of the state of FL and the club POS. IMO, the only way this could happen would be if a resort were to exit the club which would affect all owners, not just resale. I think your friend is misinformed for some reason.

Curious that if this happens, the people that already bought a resale will be "grandfathered" in to still use pts at other resorts?? I would assume so since in the purchase contract signed it states that. Just like the new contracts state that you can't use pts at NON DVC resorts etc, but people that bought a resale before this went into effect still can

There is no restriction to prevent retroactive changes and it's likely that any changes that go into effect will affect all restricted buyers retroactively. They can't make changes that affect different owners differently that are contractual but they can in all other areas including all exchange options. Personally I think home resort and other club access is contractually protected to be the same and that RCI or similar access is an almost certainty as well. The area of question is the BVTC option and any other perks. Now it's possible they could back into some changes by instituting a VIP program and limiting access to those benefits to only qualified members including wait list options.

 

[Sandisw]

I do not believe that to be legally possible or even to have a different reservation window retail vs resale. I know there are those that believe otherwise but I feel I have a good grasp of the legalities of the state of FL and the club POS. IMO, the only way this could happen would be if a resort were to exit the club which would affect all owners, not just resale. I think your friend is misinformed for some reason.

There is no restriction to prevent retroactive changes and it's likely that any changes that go into effect will affect all restricted buyers retroactively. They can't make changes that affect different owners differently that are contractual but they can in all other areas including all exchange options. Personally I think home resort and other club access is contractually protected to be the same and that RCI or similar access is an almost certainty as well. The area of question is the BVTC option and any other perks. Now it's possible they could back into some changes by instituting a VIP program and limiting access to those benefits to only qualified members including wait list options.

Just curious..because I know we have a difference of opinion on the reservation window...if they changed all members to having only a 1 month advantage over non resort owners, what is in the POS, and then a few months down the road, came out with a VIP program that included a longer reservation time for direct points, do you think that situation could be challenged?

I definitely agree there is no way to limit points to home resort without affecting all owners.

 

[Tinkerdreams]

Is it possible that they could restrict the booking time for resale.

11 month window for home resort (direct and resale - all)
7 month any DVC (direct and resale as of a certain cut off date)
5 months and DVC (resales purchased from XX/XX/XXXX date)

Might make it unattractive to purchase resale if you had a very short window and couldn't get into the resort you want.

 

[Dean]

Is it possible that they could restrict the booking time for resale.

11 month window for home resort (direct and resale - all)
7 month any DVC (direct and resale as of a certain cut off date)
5 months and DVC (resales purchased from XX/XX/XXXX date)

Might make it unattractive to purchase resale if you had a very short window and couldn't get into the resort you want.

I don;t see how they legally could for existing resorts.

Just curious..because I know we have a difference of opinion on the reservation window...if they changed all members to having only a 1 month advantage over non resort owners, what is in the POS, and then a few months down the road, came out with a VIP program that included a longer reservation time for direct points, do you think that situation could be challenged?

I definitely agree there is no way to limit points to home resort without affecting all owners.

My opinion is they couldn't make it different for qualified vs non qualified. What they could do would be a VIP program that gave a VIP priority for a wait list or an advanced reservation window. Then the VIP qualifications would come into play. They certainly can change the window but they'd have to change it for all. Not only do I see this as an easy challenge, I see it as an easy one to win. I don't see DVC sticking their neck out in this way.

 

[JimMIA]

I think it's also good to remember that anything DVC does to resale purchasers is a double-edged sword. Restrictions on resale points may create some debatable benefit to direct buyers -- but they also devalue the direct purchasers points because getting OUT of DVC will be more costly for them.

Direct purchasers should remember that when they exit, they will do so at the prevailing resale prices. I think the resale restrictions of a couple of years ago hurt direct buyers far more than they hurt resale buyers because the restrictions contributed to the enormous differential between what they paid and what they can now recover.

And if someone is paying $160 per point direct today and financing, I feel sorry for them if their circumstances change and they have to sell a few years from now. They're going to have a bloodbath -- huge loss, and a huge pay-IN to close.

 

[ParrotBill]

The best argument I've heard people make for why this cannot functionally happen is that if you have a chunk of resale buyers who are restricted to their home resort and their home resort is an in-demand resort, it will make it difficult for direct buyers to get in at seven months.

I agree... perhaps we will see restricted to your home resort AND Saratoga Springs.. which is where we always end up if we do not reserve before the first day of our 7 month window! (We own at Boardwalk.)

 

[Micca]

I heard one of the new rules is that you will be allowed to talk about fight club(as long as you're staying at a home resort on points).