Resale/ROFR ??

[jagson]

Does DVC allow sell of a DVC contract to a 1st degree relative, ie brother, sister, etc, waiving ROFR? Is it considered a resale or direct-sale?

 

[erionm]

If it's a gratuitous transfer, they will typically waive ROFR and any benefits will be transfer to the new owner(s).

If funds change hands, it will be flagged as a resale contract and subject to current resale restrictions.

 

[Toreby]

Disney does not care who you sell it to. As erionm said, if funds change hands, it is subject to ROFR, and any grandfathered perks will be lost to the buyer.

 

[MrInfinity]

Hi, check out the transfer FAQ...
https://disneyvacationclub.disney.go.com/faq/contract-deeds/change-name/
And their transfer form...
https://disneyvacationclub.disney.g...gespecific/eng/faq/LTRTRANSRevised8-17-16.pdf

Add or remove a spouse/former spouse; children that are of legal age of majority; parents or any other person

Note the or any other person. It does not have to be anyone in particular nor even a relative.
The form only references the names of the recipient / trust, not a relationship to the owner so relationship is irrelevant.
Note the steps at the bottom:

Step 1 – complete the Request to Change Title form and fax to Membership Administration
Step 2 – Member Administration will issue a Waiver of the Right of First Refusal within 30 days of receipt of the Request to Change Title form

In Step 2, MA will issue a waiver. Not, MA will evaluate and decide if they will waive. All that is required is that you declare the transfer is "without consideration (gratuitous)". If you accept payment, even to your brother or sister, then you cannot use this form, it becomes a resale and will lose direct perks and be subject to ROFR.

 

[jagson]

How does Disney know its a gratuitous transfer v a sale? I can think of several ways to get around that. Suppose he just wanted to "gift me" $10,000 out of the kindness of his heart? Etc.

 

[MrInfinity]

Disney knows by the submission of that form. You submit that form, it's a gift. That's it. They'll have no clue if your brother gives you cash. Tho I believe if someone withdraws $10,000 or more from a bank at one time (I think that's the threshold, but I may be off on that!) the bank will record the occurrence and send it to the government.

 

[Toreby]

Keep in mind that the IRS will have an interest in this as well. If they somehow find out that what was proclaimed a gift was not a gift then there could be penalties assessed. Chances they'll find out might be tiny unless one of you get audited, but it's something to be aware of.

 

[supersnoop]

You're contract with Disney requires you to disclose. Remember that intent matters, so you can't just claim the $10,000 was a gift. You'd be violating the contract and risk them revoking the whole thing. Do you want to take that risk?

 

[jagson]

Hi, check out the transfer FAQ...
https://disneyvacationclub.disney.go.com/faq/contract-deeds/change-name/
And their transfer form...
https://disneyvacationclub.disney.g...gespecific/eng/faq/LTRTRANSRevised8-17-16.pdf

Note the or any other person. It does not have to be anyone in particular nor even a relative.
The form only references the names of the recipient / trust, not a relationship to the owner so relationship is irrelevant.
Note the steps at the bottom:

In Step 2, MA will issue a waiver. Not, MA will evaluate and decide if they will waive. All that is required is that you declare the transfer is "without consideration (gratuitous)". If you accept payment, even to your brother or sister, then you cannot use this form, it becomes a resale and will lose direct perks and be subject to ROFR.

Thanks for the info