Purchase DVC from a friend

[Rhonda Mousie]

Was wondering the best way to purchase a DVC from a friend.

We agreed on a price that will pass ROFR. 99% sure.

Is the best way to just hand this over to a broker to process?
Is doing this privately a challenge? If not do you have any guidance?

 

[disneynutz]

Your friend can contact DVC for info on what is required.

Bill

 

[Dean]

Was wondering the best way to purchase a DVC from a friend.

We agreed on a price that will pass ROFR. 99% sure.

Is the best way to just hand this over to a broker to process?
Is doing this privately a challenge? If not do you have any guidance?

DVC will simply refer you to a full service closing agent which you likely don't need. Do realize that it's illegal to agree on one price and list another in FL. I'd use LTtransfers.com or do it myself in this situation if it's a fairly close friend. I'm sure you realize you won't get some of the benefits that the seller has such as DCL and the like, not a big deal but good to know. IF you could transfer it in 2 stages over time there's a chance you could keep those benefits.

 

[ffindis]

DVC will simply refer you to a full service closing agent which you likely don't need. Do realize that it's illegal to agree on one price and list another in FL. I'd use LTtransfers.com or do it myself in this situation if it's a fairly close friend. I'm sure you realize you won't get some of the benefits that the seller has such as DCL and the like, not a big deal but good to know. IF you could transfer it in 2 stages over time there's a chance you could keep those benefits.

How can you transfer it in 2 stages to possibly keep the direct sales benefits?

 

[supersnoop]

How can you transfer it in 2 stages to possibly keep the direct sales benefits?

Step one, file a new deed to add you, along with the current folks, to the deed.
Step two, file another new deed to remove them.

I imagine this only works for family, not for friends, and would only be legal when no money is changing hands.

 

[Dean]

Step one, file a new deed to add you, along with the current folks, to the deed.
Step two, file another new deed to remove them.

I imagine this only works for family, not for friends, and would only be legal when no money is changing hands.

I'd think there has to be some time in between the filings but how much is an unknown. I'm not sure there's technically a restriction on purchase vs gift in this situation. It may be outside the intent of the rule but my first thought is it's within the letter of the rule. I'm sure you were using legal in the sense of rules not laws.

 

[supersnoop]

I'd think there has to be some time in between the filings but how much is an unknown. I'm not sure there's technically a restriction on purchase vs gift in this situation. It may be outside the intent of the rule but my first thought is it's within the letter of the rule. I'm sure you were using legal in the sense of rules not laws.

No, I'm speaking in terms of contractual obligations and actual laws. Any time money changes hands, even for a partial interest in the deed, it's required to go through the ROFR process. If you undertake a method with intent to avoid that process, then you'd be committing fraud in the legal sense.

 

[Dean]

No, I'm speaking in terms of contractual obligations and actual laws. Any time money changes hands, even for a partial interest in the deed, it's required to go through the ROFR process. If you undertake a method with intent to avoid that process, then you'd be committing fraud in the legal sense.

What I'm thinking is that a partial sale is somewhat uncharted territory. I'm not sure DVC has a method to remove charter benefits on a partial sale and they couldn't take it under ROFR other than to become a partner with the original owner which they obviously would not do. I suppose they could track it and remove the options later but they'd be on shaky ground if there was a good lapse between the changes. I understand it's outside the intent but I'm not convinced it's not workable and within the rules. I know it's been an effective method in limited tries with at least one other timeshare that has ROFR and limits resale benefits.