Private DVC purchase....

[mjb77]

I am purchasing a DVC contract from a friend. We are told we need to send Disney an agreement of our sale. Can anyone tell me what our agreement must consist of ? Disney has not been real helpful with a private sale ?
Thanks for the help.

 

[Pa@okw95]

They have the right to purchase the contract before you. I can not help you any other way.

 

[Maistre Gracey]

Originally posted by Pa@okw95
They have the right to purchase the contract before you. I can not help you any other way.

Attempting to add to that...
That would likely want to know which resort, how many points, use year, banked or borrowed points, and of course, price.

Hopefully Dean or Doc will check in on this, as they are resale gurus.

 

[reneesam]

Even if you purchase it privately, you will still have to use an attorney or a closing company to search the title, present the information to Disney, transfer the title and record the deed. This person should know how to get the correct info to Disney. If you want to be certain this is handled properly, I'd recommend using one of the closing companies that do a lot of DVC resales, like Timeshare Closing Services in Orlando (I think they are on Sand Lake Road.) Hope this helps.
Renee

 

[SleepyatDVC]

Maybe someone over at www.tug2.net might know. I would try asking over there.

We bought a resale through a private seller and used the Timeshare Closing Services. For piece of mind, I would spend a little for the fee. Friends are friends and business is business. I wouldn't want anything to pop up later.

That being said, if the sale was between good family members, I personally might not use a closing company to save on the fees. Check with TUG to see how others might do this. I don't think it is too hard to do some research yourself. Some things to consider - Is the contract paid off? Are maintenance fees current?

Good luck and let us know what you find out and how you did it.

 

[RobDoc]

No sale can be completed without being submitted to Disney for review. The proposal will have to have the terms of purchase and Disney then has the option of purchasing at the same terms. The seller has nothing to lose- as they will get the same amount regardless who buys the contract. The buyer may end up with nothing if Disney chooses to exercise this Right-of-Refusal.

Disney has a month after receiving the proposal information before deciding whether they will intervene or not. Once Disney has signed off on the deal, the purchase can move on to record the deed- but without Disney's approval the sale cannot be legally completed (and the original owner will still be the member of record in the DVC system).

Your friend needs to find out specifically where to send the proposal (I'd probably have it notarized). The proposal won't have to be an elaborate legal document, but will need to disclose the amount of the offer- including all costs borne by the buyer.

Good Luck!

 

[Dean]

Originally posted by reneesam
Even if you purchase it privately, you will still have to use an attorney or a closing company to search the title, present the information to Disney, transfer the title and record the deed. This person should know how to get the correct info to Disney. If you want to be certain this is handled properly, I'd recommend using one of the closing companies that do a lot of DVC resales, like Timeshare Closing Services in Orlando (I think they are on Sand Lake Road.) Hope this helps.
Renee

Not quite true. While it may be advantagous to have a title search and have a lawyer draw up the deed, it is not totally necessary. You can take the old deed and generate a new one or even do a quit claim deed.

Here's the process. First you need a signed agreement between you and the other party that has all the specifics including the price, who pays closing and the like. Once you have that, it is submitted to DVC and they get to decide if they buy it out from under you or not. If they decide not to buy it, you then record the deed along with the ORIGINAL waiver. If you use a closing agent, expect to pay around $500 total including the $100 DVC transfer, deed prep, title search and recording fees. Once signed, it is sent to DVC for them to transfer the ownership to your name.

You can skimp on some of these fees but are stuck with the transfer and recording fees. There are online services that will save you about $200 on this.

 

[SleepyatDVC]

Just sitting here wondering how to get around the Disney ROFR in a private sale...

What if non-monetary consideration was part of the sales price such as:

$50 per point PLUS my Grandma's famous cookie recipe

or

$10.00 PLUS my DH's fully restored 1972 red Karmann Ghia convertible

or

$40 per point PLUS a picture of Mickey Mouse drawn personally by my four year ago DD

or

well, you get the picture...

Wouldn't Disney have to approve the sale because there would be no way for them to "pay" the exact same "price" to the seller?

 

[Dean]

Originally posted by SleepyatDVC
Just sitting here wondering how to get around the Disney ROFR in a private sale...

I can answer this also. DVC requires a monetary value to be placed on the items listed. We did a direct exchange a permanent trade of one timeshare for anther and DVC required a value to be placed on the timeshare being traded. They said that there had to be a value for recording purposes but I frankly didn't believe them. We made the value high enough that no way were they going to excercise their ROFR but it was a fair value based on what I was trading. They did approve it and we're in the process of signing and recording deeds this week.

 

[SleepyatDVC]

Originally posted by Dean
They said that there had to be a value for recording purposes but I frankly didn't believe them.

"Value for recording purposes" seems to suggest that Disney will still approve the sale. They need to "record" the value for the sale but they couldn't possibly fulfill the exact terms of the sales contract.

 

[Dean]

Originally posted by SleepyatDVC
"Value for recording purposes" seems to suggest that Disney will still approve the sale. They need to "record" the value for the sale but they couldn't possibly fulfill the exact terms of the sales contract.

I don't believe tha's the case, particularly since the waiver read like it was a cash sale for $4000 (50 points). The communications I had with them also suggested there was more than just the "recording value" to it. I didn't push it as I didn't want to upset them while they were in control. I know that for HH this would not be needed as I had a trade for HH points in the works also and talked to my legal contact up there who told me the recording on a direct permanent exchange would be based upon the cash exchanging hands and not the value. Once I get all recorded, I'll likely contact Member Amin again and ask the question more in detail.

 

[SleepyatDVC]

Originally posted by Dean
Once I get all recorded, I'll likely contact Member Amin again and ask the question more in detail.

That would be great! I know that you're the Man to get to the bottom of all things DVC in terms of a timeshare.

I certainly appreciate how you generously share your knowledge, experience, and expertise with everyone here on this board.

 

[sitchu2]

Ditto!