Question re: Dividing Contracts

[Big Kid]

Are there any restrictions on splitting the points in a DVC contract for the purpose of resale? If, for example, we owned the (old) minimum contract of 160 points, could we resell it as 2 x 80 point contracts or 4 x 40 point contracts or any other combination totalling 160 points. And could we sell only a portion of the points and retain the remainder?

Are there additional costs for dividing a contract?

 

[DebbieB]

You can't divide a contract for resale, it's all or nothing.

 

[chalee94]

only DVC can divide a contract.

if you buy a 100 pt contract...that's what you would have to sell.

when people buy 200 pts as 2 100 pt contracts, they have to do it initially when they buy. it's not an option down the road.

 

[Big Kid]

Ah, I see. So the 25-point contracts offered for resale must all have been add-ons to existing 160+ point contracts, right?

 

[chalee94]

Ah, I see. So the 25-point contracts offered for resale must all have been add-ons to existing 160+ point contracts, right?

correct.

 

[castleri]

You got it right

 

[Sandisw]

This is why, even new members, are asking that they be allowed to break up their contracts into smaller ones.

It appears that Disney has been allowing new members to break up into contracts of at least 100 as long as the total is more than the 160 minimum.

They have even allowed new members to buy at both BLT and AKV (ie: 100 BLT and 60 AKV) and still qualify for the incentives based on the total points.

 

[Dean]

Are there any restrictions on splitting the points in a DVC contract for the purpose of resale? If, for example, we owned the (old) minimum contract of 160 points, could we resell it as 2 x 80 point contracts or 4 x 40 point contracts or any other combination totalling 160 points. And could we sell only a portion of the points and retain the remainder?

Are there additional costs for dividing a contract?

But you could buy that 25 point contract resale then add on in increments of 40 (or whatever) with a min of 25 per add on. Not the cheapest approach but a good one for some situations including those looking to get started but add on as they have saves up.

 

[bookwormde]

There have been reports of DVC breaking up intial direct sales into pieces small than 100 points but recently they seam to be more restrictive about this. Once a contract is created it cannot be divided by members (although there are indications that DVC does it when they ROFR).

bookwormde

 

[Jason@dvcstore]

Are there any restrictions on splitting the points in a DVC contract for the purpose of resale? If, for example, we owned the (old) minimum contract of 160 points, could we resell it as 2 x 80 point contracts or 4 x 40 point contracts or any other combination totalling 160 points. And could we sell only a portion of the points and retain the remainder?

Are there additional costs for dividing a contract?

The Timeshare Store, Inc.® wishes this could happen.

We would be calling our 1000 point sellers ASAP to tell them best to divide that into forty 25 point contracts.

Once a contract is greater than 400 points is can't take a little more time to sell as not as many buyers looking for that many points.

Jason

 

[leith78]

This is why, even new members, are asking that they be allowed to break up their contracts into smaller ones.

It appears that Disney has been allowing new members to break up into contracts of at least 100 as long as the total is more than the 160 minimum.

They have even allowed new members to buy at both BLT and AKV (ie: 100 BLT and 60 AKV) and still qualify for the incentives based on the total points.

Thanks for the info! We're currently debating buying into DVC, and if went directly through Disney, it's good to know we can at least inquire about splitting the points we buy.

 

[Greysword]

...They have even allowed new members to buy at both BLT and AKV (ie: 100 BLT and 60 AKV) and still qualify for the incentives based on the total points.

When we added on 100 pts at BLT and 100 at VGC, we received the 200 point incentives. Thus, it can't hurt to ask for any combination of resorts as long as it is reasonable (at least one at 100 points). Depending on sales volume, DVD may be willing to make a split. Each contract costs them money in processing and recording, so it is understandable they would like to keep the numbers down.

 

[HannaBelle]

The Timeshare Store, Inc.® wishes this could happen.

We would be calling our 1000 point sellers ASAP to tell them best to divide that into forty 25 point contracts.

Once a contract is greater than 400 points is can't take a little more time to sell as not as many buyers looking for that many points.

Jason

It makes me skeptical of Disney that they would sell someone a 1,000 point contract.

I know they are in business to make money, but in my mind the guide should have suggested smaller contracts. Especially since the contracts cannot be broken even for inheritance purposes.

I am just glad I have been able to research the boards and ask questions before we buy...you guys are awesome when it comes to getting all the facts and knowing which questions to ask!

 

[Deb & Bill]

It makes me skeptical of Disney that they would sell someone a 1,000 point contract. I know they are in business to make money, but in my mind the guide should have suggested smaller contracts. Especially since the contracts cannot be broken even for inheritance purposes. I am just glad I have been able to research the boards and ask questions before we buy...you guys are awesome when it comes to getting all the facts and knowing which questions to ask!

I'd bet most of those 1000 point owners were early purchasers, like 1993,1994. I know at least one 1000 or 2000 point owner has had a package for up for resale for years now.

 

[crisi]

I'd bet most of those 1000 point owners were early purchasers, like 1993,1994. I know at least one 1000 or 2000 point owner has had a package for up for resale for years now.

Some of them were also apparently corporate owners.

And Disney is a business, not a babysitting service for their customers. Caveat Emptor is just as important at Disney as anywhere else. It costs Disney more to break up a contract into pieces when they sell it, why should they look out for you more than for themselves?

 

[SueM in MN]

Some of them were also apparently corporate owners.

And Disney is a business, not a babysitting service for their customers. Caveat Emptor is just as important at Disney as anywhere else. It costs Disney more to break up a contract into pieces when they sell it, why should they look out for you more than for themselves?

that was one of the 'sales plans' when we bought. The idea was that a corporate buyer could use the points for entertaining clients or as incentive for employees.

 

[Dean]

DVC and the sales staff have learned as we have. I'm sure it never dawned on them initially there'd be a significant resale system and that the smaller contracts would be as in demand as they are. In addition, it's not necessarily in DVC's best interest to have all those smaller contracts floating around.

 

[kevingg]

when you make that initial purchase through Disney, do you have to pay closing costs twice if you break a 200 point contract into (2) 100 point contracts?

 

[chalee94]

when you make that initial purchase through Disney, do you have to pay closing costs twice if you break a 200 point contract into (2) 100 point contracts?

no.