Why $10.00?

[IrishTink]

In doing research on the OC Comptroller's records search I see that just about every deed involving DVC has the sum of $10.00 in the "Witnesseth" section. Why is is always $10, and if you're just Quit Claiming to add other family members, can you not just say it's a gift with $0 involved? Just something I've always been a little curious about...

 

[GoofyDisneyDaddy]

Put simply, antiquated legal reasons. A contract requires "consideration" - that is something of value given from one party to the other. Thus, even if a gift or simple transfer, the parties should include a nominal sum to be sure the agreement is viewed as a contract as a matter of law.

 

[IrishTink]

Thanks for your reply! I figured it would be one of those "because that's how it's done" things.

 

[supersnoop]

Generally, it's "$10 and other compensation." Which means it's a way to prevent disclosing the actual sales price. Which is rather pointless in Orange County since you can calculate it based on the tax.

 

[MooseBucks]

Generally, it's "$10 and other compensation." Which means it's a way to prevent disclosing the actual sales price. Which is rather pointless in Orange County since you can calculate it based on the tax.

Exactly. It is to try and hid purchase prices so it is a little harder to figure out what the purchase price was.

 

[SuzGM84]

Generally, it's "$10 and other compensation." Which means it's a way to prevent disclosing the actual sales price. Which is rather pointless in Orange County since you can calculate it based on the tax.

I was wondering this same thing and just assumed it was because the deeds are for timeshares. Is it possible that someone could share how you an figure out purchase price based on tax?

 

[wdrl]

I was wondering this same thing and just assumed it was because the deeds are for timeshares. Is it possible that someone could share how you an figure out purchase price based on tax?

For deeds filed with the Orange County Comptroller, the Deed Document Tax is computed at the rate of $0.70 per 100. If a deed has a tax amount of $123.20, then the consideration amount of the deed is $17,600.

By the way, DVC deeds sold direct by Disney are taxed by OCC on the full consideration amount before any discounts apply to the final price. If Disney offers a $5.00 discount on the base price of $176.00 so that the buyer pays only $171.00 per point, the Deed Document Tax is computed on the larger non discounted consideration amount.

 

[Wakey]

The consideration is the purchase price. This is to try and not publish it, but a quick calculation on the tax defeats that.

 

[IrishTink]

I'm in the process of adding my adult children to the contract and handling the transfer myself vs. using a title company. Will saying there was $10 consideration create any kind of a situation where is can be deemed a new purchase, and therefore make us lose the grandfathered membership benefits? Am I better off saying $0 consideration?