Question for DVC vets

[Dean]

Read on another forum that it is highly likely more restrictions for resales are coming down the pike. It will be interesting to see what/if materializes.

Possibly, it wouldn't surprise me.

Penalizing resale is pretty brutal...considering Disney won't buy back your points. Guess they want it to be a lifelong commitment?

DVC is pretty light weight when it comes to resale restrictions. And yes, developers expect a lifelong commitment and view you as completion for rentals and sales and they tend to act accordingly.

There are pretty limited "restrictions" Disney can put on resale points legally. They're all sound and fury, signifying nothing.

There are no current "perks" that are worth paying large amounts more per point, often at a resort that isn't the resort you want to stay at anyway. The only way to buy Boardwalk, or Beach Club, or BLT is resale, and buying Poly points at a premium to play 7-month-bingo is simply not productive.

Abolutely. There isn't anything they can do to Resales alone but they could institute a VIP program that indirectly affects Resales more than retail.

I'm pretty sure DVC cannot pull the 11/7 month options legally on resale contracts.

Legally outside of a VIP program, I don't think there's anything they could do.

They would be the target of a massive lawsuit if they did anything to materially reduce the value of the exiting timeshares, or if they enacted policies to limit the ability of owners to sell their timeshare. The only way they could really slow down resales is by exercising their right of first refusal more aggressively.

Doubtful and is so, DVD would win it. The only way to win this is for it to affect sales adversely far more than the restriction would. They have no responsibility to ensure value and no liability if they devalue your ownership as long as they run the resorts themselves reasonably.

If they do anything to significantly devalue the timeshares (ie. subject resales to different reservation windows) or try to prevent people from selling (other than their ROFR) they would be subject to a class action lawsuit.

They always are subject but DVC members have long sense proven themselves as lambs headed to slaughter. IMO it'd take a lot more than this to create a class action suit and even more to create a successful one.

 

[supersnoop]

Doubtful and is so, DVD would win it. The only way to win this is for it to affect sales adversely far more than the restriction would. They have no responsibility to ensure value and no liability if they devalue your ownership as long as they run the resorts themselves reasonably.

The board has a fiduciary responsibility to the owners. If they violate that responsibility, they risk a judge unseating and appointing a new board. I can't see them taking that chance.

 

[southerngirl528]

Other timeshares invoke restrictions on resales so DVC would scarcely be the first. I find it remarkable that DVC really imposed no restrictions at all for so many years on their resales. I have other timeshares and have experienced restrictions firsthand. It is far from true that DVC cannot impose more restrictions on resales, but it remains to be seen if they do indeed add any more restrictions.

 

[southerngirl528]

Very good post, Dean.

Please don't spread that rumor.

Not rumor. New resale policies start today. Sorry I didn't feel comfortable citing my source.

 

[disneynutz]

If they do anything to significantly devalue the timeshares (ie. subject resales to different reservation windows) or try to prevent people from selling (other than their ROFR) they would be subject to a class action lawsuit.

Only if some attorney thinks that he could get a giant payday against Disney who has a very large legal group.

Bill

 

[General Urko]

I would like to thank you ladies and gentleman for your advise.