OKW Extension Deeds

[wdrl]

Disney is filing "extension" deeds for those OKW owners who, back in 2007 and 2008, chose to extend their deeds to 2057. These deeds confirm that the owners have the right to use the deeds from 2042 to 2057. For more details about these deeds, please see this article on the DVCNews: https://www.dvcnews.com/index.php/r...63166/4566-old-key-west-extension-deeds-filed).

Disney is apparently filing these deeds in batches, starting with the owners who bought in 1991 and early 1992. Only about 2,700 extension deeds have been filed so far.

I'd be curious hear if any OKW owner receives a copy of their extension deed.

 

[KAT4DISNEY]

As I understood it the land lease was legally extended and the ownership at OKW was tied to the land lease. I haven't seen an OKW contract though to ever verify it. So in that case OKW had to get a warranty deed signing the legal use from 2042-2057 back to themselves and those were filed when they received them back. What is the reason they are now trying to pretend that the land lease was not tied to the usage? Extension deeds?

 

[wdrl]

As I understood it the land lease was legally extended and the ownership at OKW was tied to the land lease. I haven't seen an OKW contract though to ever verify it. So in that case OKW had to get a warranty deed signing the legal use from 2042-2057 back to themselves and those were filed when they received them back. What is the reason they are now trying to pretend that the land lease was not tied to the usage? Extension deeds?

I don't think Disney is pretending anything. I think the extension deeds merely document that the owners have rights for the period from 2042 to 2057. Disney is filing an extension deed for each OKW deed that was extended back in 2007/2008. If an owner had multiple OKW deeds for which they paid the $15/point to extend, then Disney is issuing an extension deed for each deed.

I have asked several DVC veterans what documentation they received from Disney verifying that they paid for the extension. I haven't received an answer from anyone. If anyone knows the answer, I'd love to hear it.

 

[tjkraz]

As I understood it the land lease was legally extended and the ownership at OKW was tied to the land lease. I haven't seen an OKW contract though to ever verify it. So in that case OKW had to get a warranty deed signing the legal use from 2042-2057 back to themselves and those were filed when they received them back. What is the reason they are now trying to pretend that the land lease was not tied to the usage? Extension deeds?

That was my rough understanding as well. It was almost like DVC was trying to minimize paperwork, extending everyone and effectively saying "if you aren't going to pay for the extra 15 years, you need to sign something agreeing to give back the points."

Perhaps the process came under further scrutiny and it was determined that wasn't the most appropriate way to handle. Now issuing separate deeds for '42-57.

 

[KAT4DISNEY]

I don't think Disney is pretending anything. I think the extension deeds merely document that the owners have rights for the period from 2042 to 2057. Disney is filing an extension deed for each OKW deed that was extended back in 2007/2008. If an owner had multiple OKW deeds for which they paid the $15/point to extend, then Disney is issuing an extension deed for each deed.

I have asked several DVC veterans what documentation they received from Disney verifying that they paid for the extension. I haven't received an answer from anyone. If anyone knows the answer, I'd love to hear it.

One precludes the need for the other though. (From all my not completely limited real estate deed experience but definitely non-lawyer experience.) Call me a bit suspicious for some reason of this action being done a decade+ after the fact.

 

[Deb & Bill]

...I have asked several DVC veterans what documentation they received from Disney verifying that they paid for the extension. I haven't received an answer from anyone. If anyone knows the answer, I'd love to hear it.

Maybe because it was such a poor deal that not many people extended?

 

[BillPA]

For us, when they came up with this 'deal' we still had about 40 years to go and couldn't see throwing more money at it as I most likely would be 'dust' by then.

 

[wdrl]

I can think of a couple reasons for these deeds. First, as the deeds state, they "document and confirm the acquisition of title to the Extended Ownership Interest. . . ." I've always wondered how members who chose to extend could prove they paid for the extension. Or, more importantly, how would a family member disposing of an estate would know that their parent extended their deed years ago? Now, with this filing, there will be a recorded deed on file with Orange County.

Second, it might come down to tax money. Each OKW deed that was extended represented a real estate transaction. As such, it should have been subject to a tax levy by Orange County. I don't know if Disney paid any taxes to Orange County back in 2007/2008, but it is paying a Deed Document Tax on each deed filed today. At $15 for each extended point, the Deed Document Tax bill would be about $105,000 for every million points extended. My gut feeling is that Orange County would not let Disney skip out on a such a tax bill, even if it took 11 years to collect.

 

[KAT4DISNEY]

I can think of a couple reasons for these deeds. First, as the deeds state, they "document and confirm the acquisition of title to the Extended Ownership Interest. . . ." I've always wondered how members who chose to extend could prove they paid for the extension. Or, more importantly, how would a family member disposing of an estate would know that their parent extended their deed years ago? Now, with this filing, there will be a recorded deed on file with Orange County.

Second, it might come down to tax money. Each OKW deed that was extended represented a real estate transaction. As such, it should have been subject to a tax levy by Orange County. I don't know if Disney paid any taxes to Orange County back in 2007/2008, but it is paying a Deed Document Tax on each deed filed today. At $15 for each extended point, the Deed Document Tax bill would be about $105,000 for every million points extended. My gut feeling is that Orange County would not let Disney skip out on a such a tax bill, even if it took 11 years to collect.

This is where I'm a bit iffy on the exact ins and outs but I don't believe the Deed itself ever had a so called expiration date. The land lease did and the ownership is tied to the land lease. So once the land lease was extended the ownership was extended. Deeds just relate who owns what. So it wasn't ever that those who extended needed to prove it but just the opposite. DVC had to prove that DVC had the right to that real estate interested after 2042 and they had to file the signed warranty deed (or maybe quit claim deed? I'll use warranty deed) to prove they had been assigned the ownership from 2042 to the end of the land lease.

And that was the whole problem with the extension. Legally they had given everyone 15 more years right after the signature extending the land lease and legally they couldn't just assess for those years. They had to sweat out getting everyone to either pay for that extension that they had already given or to get the warranty deeds back saying the owner gave them the property back early in 2042.

And so I find these "extension" deeds to be odd as I can't believe that legal back then got it so backwards after the oops on the land lease extension.

And odd with DVC these days makes my spidey senses start tingling.

 

[CarolynFH]

Second, it might come down to tax money. Each OKW deed that was extended represented a real estate transaction. As such, it should have been subject to a tax levy by Orange County. I don't know if Disney paid any taxes to Orange County back in 2007/2008, but it is paying a Deed Document Tax on each deed filed today. At $15 for each extended point, the Deed Document Tax bill would be about $105,000 for every million points extended. My gut feeling is that Orange County would not let Disney skip out on a such a tax bill, even if it took 11 years to collect.

Ah yes, and Disney has such a friendly relationship with the Orange County Tax Assessor these days. Maybe DVD was caught in an audit and is being forced to file these deeds and pay the taxes.

 

[OKW Lover]

We did do the extension when first offered. We did it even though we will probably expire before the extended date. Our intention is that it goes to our heirs and that they will think of us whenever they use the points when we are gone.

That aside, I really don't recall what we got when we did the extension. We have to documentation around here somewhere but it will take a search. I know we got something....

 

[wdrl]

We did do the extension when first offered. We did it even though we will probably expire before the extended date. Our intention is that it goes to our heirs and that they will think of us whenever they use the points when we are gone.

That aside, I really don't recall what we got when we did the extension. We have to documentation around here somewhere but it will take a search. I know we got something....

It would be interesting to hear if Disney sends you a copy of your extension deed.