We have family members who are DVC owners and are considering selling their membership to us. Is there a way this could be done without going through the normal resale process? And if so, how can it done? Thanks
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Private sale?
- Thread starter Cubs Brian
- Start date
nickys
Premium Member
DVC allow a gratuitous transfer of contracts to close family members. I’m not sure what they would count as “close”. In those cases they will waive ROFR when the transfer is made. If they had doubts then presumably they would ask for proof.
However all sales need to be recorded and be submitted for ROFR, even if you did it without a broker. So there’s no way around that.
So if the sellers were selling at a very low more or less a token amount Disney could deny the sale?
nickys
Premium Member
ROFR stands for right of first refusal. All resales have to be submitted. If the price you offer is very low DVC can take that contract at the same price. The sellers would still get paid but the would-be buyers lose out.
In order to leave Disney out of the loop so to speak would be to have them add you as owners on their contract, then remove themselves. You could pay them in cash instead of going the official ROFR route with Disney involved. It would require a title attorney in Florida to do it all correctly and above board, but it could be done that way. Just a thought.
ETA: The other method would be for the family members to create a trust - move the DVC title to the trust - add you to the trust - then remove themselves from the trust. That is how we will be doing it with our kids.
I believe a title company can take care the recording. I'm unsure about the ROFR documention but it's likely just a form document that's submitted with the contact to sell.
I'd first suggest @nickys advice and call Disney to see what they recommend. I'm sure this, folks with sales not wanting to deal with a broker, comes up often enough that they have some answer.
You can also call a title company for guidance. I've heard people recommend Mason Title but I don't have personal experience. They can probably either tell you exactly what to do or can give a recommendation of who to work with.
Finally, another option is to email a few brokers, tell them you have a buyer, and ask how much they'd charge to take care of it (remember title fees may not be included in number given to you). In theory they should offer a discounted rate because there's little work to do-- there's no need to put anything on a website, receive and communicate offers and acceptance, etc. My related experience was contacting Jerry Sydow at The Timeshare Store when I had someone wanting to rent me points but wanted a middleman and Jerry came up with a reduced price for not having to do as much work.
I'd first suggest @nickys advice and call Disney to see what they recommend. I'm sure this, folks with sales not wanting to deal with a broker, comes up often enough that they have some answer.
You can also call a title company for guidance. I've heard people recommend Mason Title but I don't have personal experience. They can probably either tell you exactly what to do or can give a recommendation of who to work with.
Finally, another option is to email a few brokers, tell them you have a buyer, and ask how much they'd charge to take care of it (remember title fees may not be included in number given to you). In theory they should offer a discounted rate because there's little work to do-- there's no need to put anything on a website, receive and communicate offers and acceptance, etc. My related experience was contacting Jerry Sydow at The Timeshare Store when I had someone wanting to rent me points but wanted a middleman and Jerry came up with a reduced price for not having to do as much work.
Phonedave
Well-Known Member
I title company offers title insurance, based on a title search. They look at the title of the property, do an investigation to ensure that there are no liens or other encumbrances against the property, and then provide insurance to that effect (in other works, guaranteeing their research). They are not going to help with filing the the transfer of ownership.
The easiest thing to do is to call DVC and tell them you want to transfer ownership to a close family member.
If they deny that then you can either try the whole move it into a trust, or add people and then remove people thing (There are fees involved with that).
Or you could also "sell" it to your relative at a crazy amount. "Sell" it for more than the direct from DVC price. DVC will not exercise ROFR on points it is going to loose money on. Or in the oddball case it does, then your relative can buy direct and come out ahead.
The easiest thing to do is to call DVC and tell them you want to transfer ownership to a close family member.
If they deny that then you can either try the whole move it into a trust, or add people and then remove people thing (There are fees involved with that).
Or you could also "sell" it to your relative at a crazy amount. "Sell" it for more than the direct from DVC price. DVC will not exercise ROFR on points it is going to loose money on. Or in the oddball case it does, then your relative can buy direct and come out ahead.
nickys
Premium Member
The OP is the potential buyer in this case, not seller.
And we don’t actually know that the relatives want to give it to them for next to nothing either, just that they probably don’t want to charge full market value and effect a hassle free sale.
Changing the deeds does seem like the most viable option, but I don’t know how hassle free it is.
CaptainAmerica
Well-Known Member
I wouldn't recommend committing fraud, particularly in a real estate transaction.
OP should do this transaction only through legitimate means. They definitely don't need to hire a broker and pay a commission, but they should EITHER 1) do a gratuitous transfer or 2) negotiate a bona fide purchase price and put the contract through the ROFR process.
Title companies can do more than research and title insurance.
DVC Title and Escrow says they "handle all the details, from the purchase agreement and right of first refusal submission to beyond." They also advertise adding and removing owners and transferring to a trust. Any of these services sounds useful to OP. I've never worked with the company so I'm only going off what their website advertises.
And there are businesses that aren't title related that can help and that might be cheaper. People on Disboards have recommended LT Transfers.
DVC Title and Escrow says they "handle all the details, from the purchase agreement and right of first refusal submission to beyond." They also advertise adding and removing owners and transferring to a trust. Any of these services sounds useful to OP. I've never worked with the company so I'm only going off what their website advertises.
And there are businesses that aren't title related that can help and that might be cheaper. People on Disboards have recommended LT Transfers.
Phonedave
Well-Known Member
Yeah,
That was kind of tongue in cheek. The other issue with doing what I said is you expose yourself to capital gains taxes.
I agree with your assessment. See if DVC will do a transfer. If not, then do an actual sale.
Phonedave
Well-Known Member
Ah, I see
A Title Company does what I said - Research of clear title and title insurance. (I know a few title agents, one of whom owned her own agency).
DVC Title and Escrow is more than a Title agency despite what they may have in there name. They do a lot more than an regular title agency. To start with, a normal Title Agency has nothing to do with Escrow.