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?

 

[VGCgroupie]

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

If they are just gifting it to you I dont believe it does. You just transfer title. I would call a title company used for DVC and they can tell you what needs to be done.

 

[sndral]

A couple of things to think about:
First, I assume that ethically you would not want to take financial advantage of these elderly relatives of your wife’s coworker, so, since there’s demand for DVC contracts & you’d presumably pay close to market rate both because it’s the right thing to do & because you’ll need to pass ROFR, then the questions are -
Do you want an unextended OKW contract? By that I mean do you stay there or do you make reservations at 7 months or less out? Where are your other contracts?
Currently OKW unextended contracts are worth $70/80s per point https://www.dvcforless.com/listings?rn=Old Key West
How many points are we talking about? Do you need more points? Do you want to pay MFs on these new points - OKW’s MF’s at $10.50 a point in 2025 are the 2nd highest of the WDW properties ATM. https://dvcnews.com/dvc-program-menu/financial/annual-dues-by-resort
What’s the use year? If it’s a different use year than yours, you’ll have 2 memberships & that will introduce complications in booking those points w/ your existing contracts.
This is a friend of a coworker resale situation, so you’ll need to go through ROFR which any of the DVC focused title companies can help you w/ & will save the seller the resale commission (8-9%) broker’s charge, thus, unless you go through all kinds of under the table contortions, the new contract will be restricted which may or may not matter to you depending on where you stay. If you like Riviera, it’s a no go, if you stay at unrestricted resorts then owning a restricted resale contract matters less.
Personally, I’d educate your wife’s co-worker about DVC’s uses & that, unlike most timeshares it has value on the resale market, if, for example, they own around 200 points - $15,000 in value.
If you really want an OKW contract w/ that many points in that use year & are prepared to pay close to market rate for it, then sure, by selling it to you the elderly couple will save on commission.
OTH, if I wasn’t in the market for an OKW contract, I’d advise my wife’s friend to have her elderly relatives contact one of the DVC resale brokers to list their contract for sale if they aren’t using it & no one in their family wants to use it - they’d likely appreciate the extra cash a sale would bring & the savings from no longer paying MFs on the points .

 

[VGCgroupie]

A couple of things to think about:
First, I assume that ethically you would not want to take financial advantage of these elderly relatives of your wife’s coworker, so, since there’s demand for DVC contracts & you’d presumably pay close to market rate both because it’s the right thing to do & because you’ll need to pass ROFR, then the questions are -
Do you want an unextended OKW contract? By that, I mean do you stay there or do you make reservations at 7 months or less out? Where are your other contracts?
Currently OKW unextended contracts are worth $70/80s per point https://www.dvcforless.com/listings?rn=Old Key West
How many points are we talking about? Do you need more points? Do you want to pay MFs on these new points - OKW’s MF’s at $10.50 a point in 2025 are the 2nd highest of the WDW properties ATM. https://dvcnews.com/dvc-program-menu/financial/annual-dues-by-resort
What’s the use year? If it’s a different use year than yours, you’ll have 2 memberships & that will introduce complications in booking those points w/ your existing contracts.
This is a friend of a coworker resale situation, so you’ll need to go through ROFR which any of the DVC focused title companies can help you w/ & will save the seller the resale commission (8-9%) broker’s charge, thus, unless you go through all kinds of under the table contortions, the new contract will be restricted which may or may not matter to you depending on where you stay. If you like Riviera, it’s a no go, if you stay at unrestricted resorts then owning a restricted resale contract matters less.
Personally, I’d educate your wife’s co-worker about DVC’s uses & that, unlike most timeshares it has value on the resale market, if, for example, they own around 200 points - $15,000 in value.
If you really want an OKW contract w/ that many points in that use year & are prepared to pay close to market rate for it, then sure, by selling it to you the elderly couple will save on commission.
OTH, if I wasn’t in the market for an OKW contract, I’d advise my wife’s friend to have her elderly relatives contact one of the DVC resale brokers to list their contract for sale if they aren’t using it & no one in their family wants to use it - they’d likely appreciate the extra cash a sale would bring & the savings from no longer paying MFs on the points .

I’m not thinking this is taking advantage. Selling isn’t always easy and many people pay premiums just to be done with something. Using the board sponsors buy it now price could be a good way to look at it. But again finding someone to buy from you directly saves money, time, effort and stress so I think a low price isn’t taking advantage.

If it’s not being gifted and the price is too low and DVC buys it back then the process was also easy for the sellers since Disney will just cut them a check.