OKW Extension question

[dgb]

Here's a question:

Mr. Jones is an OKW member who has declined the extension opportunity on his contract. Mr. Jones then opts to sell his contract to Mr. Smith. As the new owner, can Mr. Smith request to extend the contract with Disney? Or will Disney disallow that, as Mr. Jones declined the initial offer?

 

[Deb & Bill]

Well, we originally declined the offer to extend at $15 a point. We later got a letter offering us the chance to extend at $20 a point at a later date. So, I'd bet you could extend at any time. It will just cost more, probably $25 a point.

 

[RobDoc]

This is also a situation where "Mr. Smith" should do the math before purchasing from Mr. Jones since it may be more costly. All direct purchases of OKW thru DVC have the extension - price is $101 with no closing costs and all current points in the contract and prorated dues.

The resale purchase will likely have closing costs and full dues unless those aspects are negotiated in advance. Also, the contract may not have all points intact (or it might even come with banked points).

It might be prudent for Mr. Smith to know what the same contract would be thru DVC before buying a resale from Mr. Jones. The possible advantages for the resale would be banked points, less-than-160 points and negotiated dues and maintenance fees - the advantages of the direct purchase would be that Mr. Smith could select a Use Year and would already have the extended contract going in.

Good luck to both Mr. Smith and Mr. Jones!