transfering contract

[fasttrakphil]

What is the process for transfering a contract in both my wife's and my name to just one of us?

 

[Dean]

What is the process for transfering a contract in both my wife's and my name to just one of us?

Assuming it's Orange county, it goes like this but the principles are the same for all options.
Make sure there's no mortgage or past due amounts.
Get the transfer paperwork from DVC.
Complete the first transfer form.
Send it to DVD for ROFR.
Record ROFR and prepared deed.
Complete the second transfer form and send that along with a copy of the recorded deed to DVC.

Existing reservations will not be canceled in this situation.

 

[fasttrakphil]

Assuming it's Orange county, it goes like this but the principles are the same for all options.
Make sure there's no mortgage or past due amounts.
Get the transfer paperwork from DVC.
Complete the first transfer form.
Send it to DVD for ROFR.
Record ROFR and prepared deed.
Complete the second transfer form and send that along with a copy of the recorded deed to DVC.

Existing reservations will not be canceled in this situation.

So DVD has a right of first refusal even if I want to keep it in my immediate family and just take my name off of it.

 

[Dean]

So DVD has a right of first refusal even if I want to keep it in my immediate family and just take my name off of it.

I recently reviewed the POS on this subject and technically yes appears to be the answer. However, at the present time, they give an automatic waiver for this situation but they elect to use the same process.

 

[fasttrakphil]

I recently reviewed the POS on this subject and technically yes appears to be the answer. However, at the present time, they give an automatic waiver for this situation but they elect to use the same process.

Thank you very much Dean..................

 

[ELMC]

I recently reviewed the POS on this subject and technically yes appears to be the answer. However, at the present time, they give an automatic waiver for this situation but they elect to use the same process.

In this case, if DVD did decide to exercise ROFR, what figure would they use as the purchase price? Due to the nature of the transfer there is most likely not a dollar value assigned to the contract.

 

[Dean]

In this case, if DVD did decide to exercise ROFR, what figure would they use as the purchase price? Due to the nature of the transfer there is most likely not a dollar value assigned to the contract.

I scanned the POS and read the portion on ROFR. I didn't see anything in the individual POS for OKW that suggested that one could transfer it otherwise. Technically as I saw it written, they could potentially take it. Maybe there's info I missed. Regardless, they are allowing gratuitous transfers to family and name changes within family.

 

[Nigel8600]

As an easy way around ROFR I would just put a crazy amount per pout on the contract of 180PP. That way they will never ROFR it. It's just fictitious money anyway. Wouldn't that work?

 

[chalee94]

As an easy way around ROFR I would just put a crazy amount per pout on the contract of 180PP. That way they will never ROFR it. It's just fictitious money anyway. Wouldn't that work?

pretty sure that's what the lawyers like to call "fraud."

 

[Dean]

As an easy way around ROFR I would just put a crazy amount per pout on the contract of 180PP. That way they will never ROFR it. It's just fictitious money anyway. Wouldn't that work?

It's illegal in FL, and in any other state I know of, to create a RE contract that isn't accurate as to the money involved. The legitimate question is putting something down that can't be duplicated. DVD will ask for a dollar amount for that item and will use that as their basis. I've actually done this but for different reasons as we were truly trading one timeshare for a DVC contract of equal value and with no additional money from either party. I might have been able to challenge this without putting in the dollar amount but didn't want to draw it out too much or get lawyers involved.

 

[Nigel8600]

pretty sure that's what the lawyers like to call "fraud."

Fraud??? Come on!!! It's a transfer of a deed between family members. Give me a break. OK, so to avoid "fraud" charges how about if the one family member gives the other family member a cheque from their chequing account to the savings account. Jeepers.

I would consider it fraud if the two family members were colluding to trick DVD into ROFRing the contract which is clearly not the case here.

 

[Dean]

Fraud??? Come on!!! It's a transfer of a deed between family members. Give me a break. OK, so to avoid "fraud" charges how about if the one family member gives the other family member a cheque from their chequing account to the savings account. Jeepers.

I would consider it fraud if the two family members were colluding to trick DVD into ROFRing the contract which is clearly not the case here.

If there's no intent to bypass ROFR, why not put the correct info and avoid the issue. However, as I understand it, DVD is not required to waive ROFR for gifts (though they normally do) but will not for sales, no matter the relationship or specifics other than based on their ROFR determination.

 

[Nigel8600]

If there's no intent to bypass ROFR, why not put the correct info and avoid the issue. However, as I understand it, DVD is not required to waive ROFR for gifts (though they normally do) but will not for sales, no matter the relationship or specifics other than based on their ROFR determination.

Yes, absolutely. I agree 100% and that's all I was trying to help out with. If DVC didn't get involved with family contracts there wouldn't be an issue of trying to get past their ROFR.

I guess the easiest and simplest way to do this would be IF there was no outstanding mortgage on the deed there should be a procedure where you can just simply remove yourself from the asset. Abandon it to the other names on the deed. If no ones left on the deed it just reverts back to DVD.

How does someone remove someone from a deed if they pass away?

Thx

 

[Dean]

Yes, absolutely. I agree 100% and that's all I was trying to help out with. If DVC didn't get involved with family contracts there wouldn't be an issue of trying to get past their ROFR.

I guess the easiest and simplest way to do this would be IF there was no outstanding mortgage on the deed there should be a procedure where you can just simply remove yourself from the asset. Abandon it to the other names on the deed. If no ones left on the deed it just reverts back to DVD.

How does someone remove someone from a deed if they pass away?

Thx

There really are several issues here. DVC uses the ROFR as a method to accomplish name changes and appropriate transfers as well as sales, including those to non members. One issue is adding or removing a name related to an existing contract. There are legitimate reasons to add or remove a name and DVD is good with that. However, as I read the paperwork, they are not required to allow even gratuitous transfers but they always have from what I can tell. The problem comes in one of several areas. One is when trying to "sell" to a family member at a reduced rate but put a higher rate on the contract submitted, another is when selling, that the buyer wants to escalate the price to avoid ROFR risk and guarantee the sale will go through. As I understand it, neither are OK and both are fraud. Is it done? absolutely it is. There are a number of ways that these issues can be taken advantage of.

 

[mbakun]

I am super confused, as I just asked Disney for the paperwork to transfer title from my brother and my name to just mine. The only thing we received was a "request to transfer form", an invoice for $475 for a Title Insurance company (for a title search and insurance - which insane because we know the title is clear) and a form for how we want the new deed to read. My questions are:

1) Where does the ROFR come into play?
2) What if I don't want to use this company and pay them $475? Disney says we don't have to use them, but doesn't suggest anything else.

Hope someone can shed some more light on this for me.

Thanks! Michelle

 

[Dean]

I am super confused, as I just asked Disney for the paperwork to transfer title from my brother and my name to just mine. The only thing we received was a "request to transfer form", an invoice for $475 for a Title Insurance company (for a title search and insurance - which insane because we know the title is clear) and a form for how we want the new deed to read. My questions are:

1) Where does the ROFR come into play?
2) What if I don't want to use this company and pay them $475? Disney says we don't have to use them, but doesn't suggest anything else.

Hope someone can shed some more light on this for me.

Thanks! Michelle

ROFR comes into play because that's the process DVC uses to make such changes. Simply send in the transfer form and the invoice I'd write not applicable on it and not sign it. They will send you a ROFR and you'll then need to record that along with a deed. Once you have the recorded deed, send a copy back to DVC member admin along with the other transfer form you'll get with the ROFR. If it matters, existing reservations will not be canceled in your situation.

 

[mbakun]

Thanks for answering both my posts, Dean. You are super helpful! Thank goodness for these boards, otherwise I would have given them my $475 without thinking twice.

Michelle

 

[Dean]

Thanks for answering both my posts, Dean. You are super helpful! Thank goodness for these boards, otherwise I would have given them my $475 without thinking twice.

Michelle

You are welcome. Since you're going to need a deed, may as well get started on that option while waiting on ROFR. I'm assuming there is no loan so you would have the option of a quit claim or warranty deed. I wonder why they sent it out this way and wonder if they've started doing it this way as a sneaky way to make a few $$$.

 

[LaNina72]

Michelle - How did you make out with this process? ie, not paying the $475 title search.

I'm considering adding my little brother to my contract (the contract currently has my husband, my mother and myself) since he's the one that travels with us most often.

Dean - You mentioned about "starting the deed process". Can you give an outline as to what needs to be done?

Thank you both for sharing your experience, so very appreciated.

 

[Dean]

Michelle - How did you make out with this process? ie, not paying the $475 title search.

I'm considering adding my little brother to my contract (the contract currently has my husband, my mother and myself) since he's the one that travels with us most often.

Dean - You mentioned about "starting the deed process". Can you give an outline as to what needs to be done?

Thank you both for sharing your experience, so very appreciated.

The $475 would be for a full closing, it may or may not include a title search which you do not need. You also do not need the escrow. There are companies that will do it for less, often much less. However, all you need is 3 fairly simple steps. ROFR from DVD, deed prep and deed recording. The first is very easy, the second more simple than most would like to make it out and the last fairly simple as well. If you're comfortable with a quit claim deed, which may make getting title insurance on selling more difficult or not possible, I think it's all simple. I've since heard that OC has a new form to complete which also shouldn't be an issue in this situation as there is no money changing hands (they used to have a different form which they stopped about 4 years ago).

As for getting the deed completed, for a quit claim, all you need is a FL specific quit claim deed template, have it completed with the names and legal description then notarized for all signatures ("sellers" only go on the form) and have TWO witnesses one of which can be the notary but they must sign separately as a witness. If you want a warranty deed, you could use the current one as a template or get one of the services that will do deed only or simply use one of the cheaper closing services. My point about the deed was that if you have everything else ready (deed, other OC required forms, any fees and the process down), you would be ready to send it on for the next step when you get the ROFR back.

Do realize if you add your brother (I'm assuming he's at least 18), the ownership will become legally part his and his heir's. If he has any financial issues or passes away prior to the RTU ending, it could cause problems. I added my daughter to a 100 pt (actually 4 linked 25 pt) contract but not my larger one to try to balance the 2 issues. If you want him to have benefits, you might consider a 25 point add on and then do the transfer on that only. It would make it a separate contract but if you don't plan transfers routinely, it should not be a major issue.