What's the relationship between a resort being 100% declared and being sold out?

[AdamsMum]

Does the resort have to be sold out to be 100% declared?

Does it have to be 100% declared before being sold out?

Just curious. I read on DVC news this morning that CCV is 100% declared.

 

[CarolMN]

100% declared just means that all villas are available for Members to book. (However, Disney keeps a small percentage (thought to be 2%-4%) of ownership in each resort for administrative purposes)..

Disney cannot sell any points that are not declared into the condominium.,so while the resort is for sale, there are more rooms available for Members to book than are actually sold. This is why it is usually easier to get a room for points before it is sold out than it is after it is sold out.

The developer (Disney) will declare as needed to keep ahead of sales. Rooms that are not declared are still owned by Disney and can be rented for cash to the general public. Profits from those rentals go to the Developer.

 

[drusba]

When sales for a resort begin, only part of the resort is available for sale. As more sales occur, more units are added to be sold (a unit is typically a combination of two or more rooms). DVD always retains 2% to 4% of each unit. Thus, with CCV all salable units and interests that can be sold are now declared into the DVC system but that does not mean yet that the resort is at least 96%-98% sold, which would be considered the "sell-out" stage, although that will likely happen soon.

A resort never actually is permanently sold-out. Even after selling all the points DVD wants to sell, DVD will often have more to sell because it gets points back through exercising right of first refusal for resales and through foreclosures.

 

[zavandor]

How does it work with declarations and rooms booked for cash?
Let's say that because of Galaxy Edge, all undeclared rooms at Riviera are booked for cash for this December. Then DVC need to declare more inventory before december, but those rooms are now booked. I guess they can declare more units even if there is no availability because of cash bookings? So the declaration adds more rooms starting at 11 months, but it may not add more rooms immediately because the've been booked for cash before the declaration.
Or maybe Disney has to keep free inventory depending on projected sales in order to make a declaration in the future?

 

[wdrl]

When sales for a resort begin, only part of the resort is available for sale. As more sales occur, more units are added to be sold (a unit is typically a combination of two or more rooms). DVD always retains 2% to 4% of each unit.

Disney Vacation Development must retain retain at least 2% of a resort's points. However, that minimum holdback of 2% is not based on each Residential Unit but rather a resort's total points.

 

[AdamsMum]

Very informative, thanks all.

 

[Dean Marino]

I'll add... NO Resort is ever truly "Sold Out" .
DAILY, DVC recovers points through ROFR and foreclosure.

Dear Wife and I own 300 points, direct from Disney, at BRV. 270 were purchased in 2012, with BRV "sold out". Another 30 in 2018 with BRV "sold out" .

My point: DVC will STEER you to new offerings. You do not have to buy them - and really should hold out to BUY where you want to STAY, and get that 11 month booking window.

Just ask 'em if they want the money . And Magic happens .

 

[drusba]

Disney Vacation Development must retain retain at least 2% of a resort's points. However, that minimum holdback of 2% is not based on each Residential Unit but rather a resort's total points.

According to the DVC Membership Agreement, that 2% retained ownership figure specifically applies to each Unit and not just to the resort as a whole. That is needed to comply with the voting rights established, under which members assign their voting rights for most association matters to DVD as the Voting Representative. Each owner of a Unit assigns his voting rights in the Unit to DVD as the Voting Representative. By definition, the "Voting Representative" must actually be an owner in the particular Unit.

 

[wdrl]

According to the DVC Membership Agreement, that 2% retained ownership figure specifically applies to each Unit and not just to the resort as a whole. That is needed to comply with the voting rights established, under which members assign their voting rights for most association matters to DVD as the Voting Representative. Each owner of a Unit assigns his voting rights in the Unit to DVD as the Voting Representative. By definition, the "Voting Representative" must actually be an owner of the particular Unit.

But in practice, there are several Residential Units at several DVC resorts where DVD owns less than 2% of the points assigned to a specific Unit. For example, at Copper Creek the general public owns slightly more than 98% of the points for 20 of the 80 Residential Units. Whether DVD owns 2% or 0.2% of a Unit's points, it is still an actual owner within a particular Residential Unit.

 

[drusba]

But in practice, there are several Residential Units at several DVC resorts where DVD owns less than 2% of the points assigned to a specific Unit. For example, at Copper Creek the general public owns slightly more than 98% of the points for 20 of the 80 Residential Units. Whether DVD owns 2% or 0.2% of a Unit's points, it is still an actual owner within a particular Residential Unit.

If that has actually occurred, it would appear to be a violation of the DVC Membership Agreement, in which the applicable provision is written as an absolute prohibition: "DVD shall not sell Ownership Interests that equal more than ninety-eight percent (98%) of the total amount of undivided percentage interests existing within a Unit." See, e.g., Polynesian DVC Membership Agreement, sec. 3.6.

Also, how does one calculate a count of more points being sold than those that total 98% of the interests in a unit. It has been my understanding that the public records will show all the total points sold to original purchasers but does not show the 2% of points retained by DVD, e.g.., if you add up all the points shown in all the deeds sold to original purchasers, the total points should equal no more than those applicable to 98% of the total ownership interests in any particular unit. Thus, total salable point figures that I find published in some places are really those equalling only 98% of the ownership interests. For example, documents filed by DVD for Riviera declare, "The total number of Home Resort Vacation Points currently being registered for sale is 6,739,966." However, my understanding is that number gives you the total for 98% of the total interests in the resort because it does not include the 2% that DVD retains in each Unit that will not be registered for sale. Is that wrong?

 

[crvetter]

If that has actually occurred, it would appear to be a violation of the DVC Membership Agreement, in which the applicable provision is written as an absolute prohibition: "DVD shall not sell Ownership Interests that equal more than ninety-eight percent (98%) of the total amount of undivided percentage interests existing within a Unit." See, e.g., Polynesian DVC Membership Agreement, sec. 3.6.

Also, how does one calculate a count of more points being sold than those that total 98% of the interests in a unit. It has been my understanding that the public records will show all the total points sold to original purchasers but does not show the 2% of points retained by DVD, e.g.., if you add up all the points shown in all the deeds sold to original purchasers, the total points should equal no more than those applicable to 98% of the total ownership interests in any particular unit. Thus, total salable point figures that I find published in some places are really those equalling only 98% of the ownership interests. For example, documents filed by DVD for Riviera declare, "The total number of Home Resort Vacation Points currently being registered for sale is 6,739,966." However, my understanding is that number gives you the total for 98% of the total interests in the resort because it does not include the 2% that DVD retains in each Unit that will not be registered for sale. Is that wrong?

My understanding is also that those registered points for sale are for only 51 (out of 52 in the base year DVC uses) weeks, along with only being the 98%. Is that also correct? Just curious on this front too.

 

[wdrl]

For example, documents filed by DVD for Riviera declare, "The total number of Home Resort Vacation Points currently being registered for sale is 6,739,966." However, my understanding is that number gives you the total for 98% of the total interests in the resort because it does not include the 2% that DVD retains in each Unit that will not be registered for sale. Is that wrong?

I doubt if there is anything I can say that will dissuade you of your belief. I suggest you contact DVC directly to get an answer to your question.

 

[xWilliam]

How does it work with add-on points? I own at ccv, and if ccv is sold out and I wanted to add more points to my membership, do I go on a wait list?

 

[crvetter]

How does it work with add-on points? I own at ccv, and if ccv is sold out and I wanted to add more points to my membership, do I go on a wait list?

Yes you would have to wait for DVC to obtain points. It’s possible they might have some though. Usually when it goes to sold out they let existing members add 25 points. But not sure when they will for CCV.

 

[KAT4DISNEY]

How does it work with add-on points? I own at ccv, and if ccv is sold out and I wanted to add more points to my membership, do I go on a wait list?

Even with it "sold out" they probably have points there for immediate sale. In DVC terms sold out means it's not the actively marketed resort anymore and that there are no incentives anymore.

 

[KAT4DISNEY]

Yes you would have to wait for DVC to obtain points. It’s possible they might have some though. Usually when it goes to sold out they let existing members add 25 points. But not sure when they will for CCV.

All other resorts allowed 25 point add ons even during active sales. I suspect if someone gave DVC a compelling reason they ought to be sold 25 points they might but I otherwise would expect it will keep it's 50 points minimum for add ons. Guess we'll see!