Ownership info from DVC on a resale

[Mickey_Maniac]

I was wondering if anyone knew if DVC will send ownership information (rules, procedures, etc) to the buyer of a private resale. We are considering buying a BWV resale from friends and would like to take a look at the official docs prior to "signing on the dotted line".

Who should I call and what kind of info should I request, or should that all come from the seller.

Also wondering about closing costs. If I am privately financing through a bank loan or paying cash, why are there closing costs since this is not really a real estate investment? Any ideas?

 

[Ralph&Pam]

There are closing costs because it IS a real estate transaction. A warranty deed is issued and recorded with the Recorder of Deeds (or whatever this office is called in FL). Also, you should obtain a buyer's title insurance policy to insure clear title for the designated property. I believe this is all standard practice in the purchase of any real estate interest, even in transactions between friends or relatives.

Ralph

 

[mickeyc]

You raise several interesting issues. First, if you call Disney they will provide you with the standard marketing information. This includes hardcover book, pamphlet, and video. It is my understanding they will not provide you with the Disney Member Guidebook. This book you receive after your purchase. If you know someone in your area
who are DVC members you may be able to barrow it from them. This is comprehensive book and it explains all the rules in detail. In addition if you are buying a resale the sellers don't provide you with the guidebook it will come directly from Disney subsequent to closing. You receive all the same information as if you purchased directly. You will not receive a tote bag, which new owners usually get from a direct Disney purchase. I purchased a resale and saved thousands over buying directly. However, the resale market at present does not offer the same savings.

Second, the purchase of DVC membership is treated as a real estate transaction, although it is not a real estate investment transaction. You are purchasing vacation time. As such the closing cost include: title search, recording of the deed, contract, escrow, etc. If you are using a broker a detailed accounting will be provided to you. When you buy direct from Disney the fees are included in the price per point. With respect to a resale this becomes an issue of negotiations. If your transaction is private it would be good idea to use a service that will hold the money in escrow until you completed the transaction. The Timeshare Closing Service (407) 370-2373 is a company that will provide this service for you. This is important because you want to make sure there is no lien against the property. Usually, approximately 60 days from the recording of the deed they provide you with the title policy.

Finally, how you finance the transaction has no bearing on closing fees-- they will still be required. I hope this helps. Good luck and enjoy!!

 

[Mickey_Maniac]

Thanks to both of you for the info. It sounds like the most prudent course would be to utilize a broker even though the transaction is between friends (probably because it is).

The obvious issue then is how to do this without insulting our friends. I guess I will have to figure that one out.

 

[RobDoc]

You can certainly request the information from DVC, but they will send the standard offerings.

Since your friends are the ones selling, you may want to ask them to see all of the documents they signed for their purchase, as you will be assuming responsibility for what they signed. You will NOT be signing any new documents for DVC.

As explained above, this is a deeded real estate transaction. The deed will be recorded- thus the need for closing costs. DVC will also have to review the transaction and approve it before you can complete the purchase (DVC has right of first refusal). An attorney and title company (or both) may be a good thought, to insure that you will have clear title to the transaction with no problems afterwards, which could hinder your enjoyment of the membership.

Good Luck!

 

[mickeyc]

If the transaction is between friends you may not want to use a broker, they will charge a fee. As I mentioned above you may want to use the Timeshare Closing Service they charge a fee; however, they will do a title search as part of the fee. Most brokers use them for their transactions. Moreover, if you are sure via your friend there is no lien you may want to consider doing the tranaction yourself, you will save some money. My accountant sold his timeshare in Aruba and did all the paperwork himself. At least you have some options. IMO I don't think an attorney is necessary. It sounds like a win-win circumstance to me. Good luck!