"Owning" DVC?

[beamreach]

Can someone please explain this nomenclature of "owning" DVC? I hear this on podcasts, YouTube, and blogs all the time, folks asserting their "ownership" interests, "owning here or there." As I see it, my contracts represent a de facto flexible long-term annual rental (not a regular timeshare), wherein I am charged additional dues and costs as I would be in a typical country club. Things we own do not have an expiration date. Regular deeded timeshares in the US may have an expiration date, but that is the termination of the resort as a timeshare but not the ownership in the resort itself. In DVC, the expiration date terminates BOTH the resort as a timeshare and the ownership interest.

 

[PinkPig]

You seem to understand DVC already so not sure what there is to discuss. DVC is a deeded real estate interest but it does expire. Ownership is the popular term. I'm pretty sure anyone considering buying will quickly learn that there is an expiry.

 

[beamreach]

You seem to understand DVC already so not sure what there is to discuss. DVC is a deeded real estate interest but it does expire. Ownership is the popular term. I'm pretty sure anyone considering buying will quickly learn that there is an expiry.

I guess I'm both checking my understanding and am curious how this term even came into vogue. DVC marketing? DVC member misunderstanding of deeds vs ownership? DVC members inflating their equity interests in Disney? It's just a very odd term to use. I find it hilarious that this term is now the normal vernacular.

 

[PinkPig]

I guess I don’t feel it’s that odd, since 50 years is a really long time. Lots of things you own have a lifespan under 50 years - say automobiles.

 

[Sandisw]

You are buying an ownership interest in the building with a ground lease. However, you are agreeing upfront that you will relinquish that ownership interest at the end of the lease.

So, whether there are technical differences or not? I don’t know but a warranty deed is in deed filed with the state

 

[RamblinWreck]

I guess I'm both checking my understanding and am curious how this term even came into vogue. DVC marketing? DVC member misunderstanding of deeds vs ownership? DVC members inflating their equity interests in Disney? It's just a very odd term to use. I find it hilarious that this term is now the normal vernacular.

I own a lot of things that have expiration dates.

Bonds, preferred stock, DVC contracts.

I’m not sure where the confusion is coming from.

 

[beamreach]

You are buying an ownership interest in the building both a ground lease. However, you are agreeing upfront that you will relinquish that ownership interest at the end of the lease.

So, whether there are technical differences or not? I don’t know but a warranty deed is in deed filed with the state

I think this was the original point of marketing genius. The combination of using the term timeshare (meaning ownership forever and rights for use for a period of time) and going through the hoops to file a warranty deed is filed with the state, seems to equal true ownership to "buyers" (but really leasees). Also, the American way is to "own" so here we have "ownership"...just without actual ownership. lol

 

[miTnosnhoJ]

The expiration date is a feature, not a bug. There are timeshares out there that it is hard to sell at any price, because your heirs will inherit ever increasing maintenance fees in perpetuity.

 

[Sandisw]

I think this was the original point of marketing genius. The combination of using the term timeshare (meaning ownership forever and rights for use for a period of time) and going through the hoops to file a warranty deed is filed with the state, seems to equal true ownership to "buyers" (but really leasees). Also, the American way is to "own" so here we have "ownership"...just without actual ownership. lol

But, that is where we may differ, I do own it. I just give It back to them in the end.

 

[beamreach]

I own a lot of things that have expiration dates.

Bonds, preferred stock, DVC contracts.

I’m not sure where the confusion is coming from.

I see what you mean. Non-perpetual preferred stocks can expire and cease to exist, but you still receive the issue price (DVC expires worthless); bonds are loans wherein the investor is also the creditor.

 

[john7994]

I think this was the original point of marketing genius. The combination of using the term timeshare (meaning ownership forever and rights for use for a period of time) and going through the hoops to file a warranty deed is filed with the state, seems to equal true ownership to "buyers" (but really leasees). Also, the American way is to "own" so here we have "ownership"...just without actual ownership. lol

But it has an expiry - which was clear when I bought in - and it is transferable until that expiry - so not sure I get the marketing piece of it.

 

[john7994]

I own a lot of things that have expiration dates.

Bonds, preferred stock, DVC contracts.

I’m not sure where the confusion is coming from.

I own food until it expires

 

[Sandisw]

I see what you mean. Non-perpetual preferred stocks can expire and cease to exist, but you still receive the issue price (DVC expires worthless); bonds are loans wherein the investor is also the creditor.

And I would say that most timeshares are useless in terms of their resale value….

I mean if I buy a car and hold it long enough, it won’t be much if any in resale value.

Here is another way I look at it: I bought and paid for cars And then changed ownership to my kids later on…this was the plan from the beginning…would that mean that I didn’t own it?

 

[RamblinWreck]

I see what you mean. Non-perpetual preferred stocks can expire and cease to exist, but you still receive the issue price (DVC expires worthless); bonds are loans wherein the investor is also the creditor.

Or maybe my DVC contract is more like a bond, where the coupon is DVC points!

I think when people convince themselves they own some part of Disney world because they hold a DVC contract, they’re probably kidding themselves. But a DVC contract is certainly something you own, and something you can resell to other people.

So DVC “owners” just seems like the shortest name that still accurately gets the point across.

Did you know that when you go to check in for your DVC booking and they say “welcome home”, that it’s not actually where you live?

 

[kanerf]

At this point since none of the contracts have expired no one knows what will happen when they do.

 

[john7994]

Don't know all the ins and outs, but throwing it out there, in order to be taxed from a real-estate perspective, doesn't one have to own it to determine who is liable for said taxes?

 

[sndral]

True story - My great grandfather’s land went to one of his sons and then to his son, etc..Imagine my surprise, decades later, to start getting checks from an oil company because they’d found oil &, unknown to me, I ‘owned‘ a % of the mineral rights to great grandpa’s land.
Because most folks aren’t 3rd year law students prepping for a bar exam the simple explanation is that folks can ‘own’ lots of things - in personum things like intellectual property, contract rights, copyrights, vehicles, personal possessions, etc. - and in rem things like a fee simple in real property, mineral rights in real property, a life estate in real property, an easement in another’s real property, a leasehold in real property, etc..
Thus it’s easier in casual & internet conversations to say we ‘own’ DVC rather than say we purchased & now own a non-freehold estate scheduled to last a specific period of time which we have the right to convey to a third party.

 

[bumbershoot]

I guess I'm both checking my understanding and am curious how this term even came into vogue.

The official loan for it is a mortgage, and that makes a difference. We bought in 2009 as our bank, Washington Mutual, was circling the drain because of their previous purpose of Long Beach CU (or whatever that awful bank was called). We went in to get the paperwork notarized and they refused because it had the word "mortgage." They couldn't be a part of such paperwork. So we went to Wells Fargo and had them notarize it.

When one has a mortgage, the common term to say regarding the property is that you own it.

We all know there's an expiration date.

DVC expires worthless

I love it when people utterly discount the years of amazing times and value they got from it. When it expires, if you're still alive, open up your photo albums and realize the value you got.

Even with a mortgage on it for...6? years, we recouped that full purchase cost inside of a couple/few years (I figured it out 5 or so years ago and can't remember the specifics) on the trips we took. And here I am, still taking nice trips.

Thus it’s easier in casual & internet conversations to say we ‘own’ DVC rather than say we purchased & now own a non-freehold estate scheduled to last a specific period of time which we have the right to convey to a third party.

Yep.

 

[RoseGold]

I mean, yea. If you die, it has to be probated like a house. If you stop paying, it gets foreclosed. That’s a deeded real estate interest. I’m not sure what you want to call it instead.

 

[BamaGuy44]

Thus it’s easier in casual & internet conversations to say we ‘own’ DVC rather than say we purchased & now own a non-freehold estate scheduled to last a specific period of time which we have the right to convey to a third party.

But luckily OP was available to let us know how "hilarious" it is that people use the term ownership to talk about their DVC contracts. What a bunch of rubes we are. I feel thoroughly educated now.