Purchase agreement statement "In the event the condominium ceases to be a DVC resort

[Geyser Gazer]

prior to the expiration date of the club owners of the condominium will not be eligible to continue participation in the DVC reservation component unless they own an ownership at another DVC resort"

Anyone else concerned by this statement, or am I just not understanding the legal jargon?

Appreciate your insights.

 

[RobDoc]

There are a few instances where this could happen (possible ... NOT probable). One would be if the owners of the resort voted to replace DVC as the management of the property. Others would be for a catastrophic event (IMHO, voting to remove DVC would also be catastrophic).

If DVC were removed as management, the owners would have to manage it themselves or hire another company to do so. That new management entity would then be free to negotiate for housekeeping services, perks, transportation, maintenance, reservation staff, etc. If we feel that DVC has a tough time negotiating with other Disney departments just imagine the success an outside gorup (or a group of owners) would have with those negotiations!

IMO, the likelyhood of any DVC resort dropping out of the "family" is slim and none.

Enjoy!

 

[timC]

What about a sale? Suppose Disney decided to sell their non-WDW properties. Would this statement apply? Maybe there's a specific provision for a sale.

To answer your original question.... No. No I don't worry about this statement, or any of the statements. It's been years since I've dusted off those documents.

Life's too short. Disney good. Lawyers bad.

 

[Geyser Gazer]

Doc,
OK, let me see if I got it. Suppose DVC agreed that only YC/BC guests were allowed to save chairs at SAB, and that they could do so with however many towels were available. BCV owners revolt by voting out DVC with a 61% margin of victory. Now only BCV owners who also own at other DVC property would retain access to MS and their reservation capabilities while lone BCV owners would have to contract for alternate services outside of DVC on their own.

timC,
"Disney good, lawyers bad"
This should be added to the purchase agreement...you made me laugh this morning.

 

[RobDoc]

Originally posted by Geyser Gazer
Doc,
OK, let me see if I got it. Suppose DVC agreed that only YC/BC guests were allowed to save chairs at SAB, and that they could do so with however many towels were available. BCV owners revolt by voting out DVC with a 61% margin of victory. Now only BCV owners who also own at other DVC property would retain access to MS and their reservation capabilities while lone BCV owners would have to contract for alternate services outside of DVC on their own.

timC,
"Disney good, lawyers bad"
This should be added to the purchase agreement...you made me laugh this morning.

If the owner's of BCV voted to remove DVC as managing entity, all member's of that resort would be unable to use MS and thus unable to use points anyplace except their resort (other members would also be unable to use points at BCV).

The comment about owning at other resorts means that those who own at other DVC resorts would be unaffected - except that BCV would no longer be a component for DVC exchange.