Questions on process of buying/selling existing contract with a private party/family friend?

[TAX GUY]

We currently have a few direct contracts that we've purchased over the years. It's no secret that we're DVC fans, so it was mentioned to us that a friend's family member has a DVC contract that they no longer use (and haven't) and no one in the family is really interested in it. They thought we might be interested in it, which we very likely would be. Assuming this moves forward in the near future, what would they/we need to do to make the sale and transfer happen? Since we've only ever done direct, we didn't need to do anything other than discuss with our rep how many points we wanted.

I want to be sure we're ready, for when the final decision is made to sell, and I want to be sure we all know what's involved. I don't believe it's a large contract, and the only thing I know so far is it's at Old Key West and has somewhere around 20 +/- years left on the deed.

 

[geargrinder]

You can go through a title company with the sale. I'd strongly suggest using one familiar with DVC. It will have to be submitted to Disney for ROFR. With that in mind, choose a reasonable price that Disney won't find too attractive. Check the ROFR thread to guide you in what is and has been passing.

 

[eticketplease]

We currently have a few direct contracts that we've purchased over the years. It's no secret that we're DVC fans, so it was mentioned to us that a friend's family member has a DVC contract that they no longer use (and haven't) and no one in the family is really interested in it. They thought we might be interested in it, which we very likely would be. Assuming this moves forward in the near future, what would they/we need to do to make the sale and transfer happen? Since we've only ever done direct, we didn't need to do anything other than discuss with our rep how many points we wanted.

I want to be sure we're ready, for when the final decision is made to sell, and I want to be sure we all know what's involved. I don't believe it's a large contract, and the only thing I know so far is it's at Old Key West and has somewhere around 20 +/- years left on the deed.

Is it currently an unrestricted contract?

I wonder if you could add you and your partner to the contract first and then a little while later remove the original owners. This way the points could be used at VDH, CFW, RIV and new resorts.

Not sure if it’s possible but just a thought.

 

[TAX GUY]

Is it currently an unrestricted contract?

I wonder if you could add you and your partner to the contract first and then a little while later remove the original owners. This way the points could be used at VDH, CFW, RIV and new resorts.

Not sure if it’s possible but just a thought.

I'm not sure, yet. My wife mentioned it to me last night. A co-worker of hers mentioned to her that her family has the DVC contract and because of their age and health now, they never go, and likely never will again. It's the very beginning stages of talks, mostly just tossing the idea out there assuming a sale would be their best option. Once it's decided to actually dispose of it, more serious talks and discussions will happen.

That would be an interesting way to handle it, if its possible.

 

[MattB2G]

Could setup an LLC for all your current DVC contracts first, and then have the other contract transferred into the LLC.

This would be a little more complicated, but could be a part of your estate planning if your kids want to eventually own your contracts.

 

[VGCgroupie]

Will you be purchasing it or are they just wanting to give it away to be done with it?

If purchasing you can just go through a reputable title company that will handle it all. Brokers really only do marketing not much else.

 

[TAX GUY]

Will you be purchasing it or are they just wanting to give it away to be done with it?

If purchasing you can just go through a reputable title company that will handle it all. Brokers really only do marketing not much else.

Would it still need to go through the ROFR process either way?