RESALE POLICY CHANGE!

[CMNJ]

They need to define "purchased". Otherwise, people in the ROFR process should be able to withdraw.

The way the letter reads to me is that if you are not a current member as of today you must buy direct to be eligible for the perks listed. The problem with new buyers currently undergoing he resale process is that they would have to get the seller to agree to terminate the contract as the agreement is between those 2 parties not the buyer and DVC. Unfortunately DVC has always explicitly said these perks could be terminated and not to purchase based on these perks. they are not park of the ownership agreement so I don't believe a buyer would be able to terminate a sale (without penalty) because these benefits were terminated.

 

[southerngirl528]

The way the letter reads to me is that if you are not a current member as of today you must buy direct to be eligible for the perks listed. The problem with new buyers currently undergoing he resale process is that they would have to get the seller to agree to terminate the contract as the agreement is between those 2 parties not the buyer and DVC. Unfortunately DVC has always explicitly said these perks could be terminated and not to purchase based on these perks. they are not park of the ownership agreement so I don't believe a buyer would be able to terminate a sale (without penalty) because these benefits were terminated.

That is the way I read it as well, CMNJ. Good post.

 

[LenInMaine]

The way the letter reads to me is that if you are not a current member as of today you must buy direct to be eligible for the perks listed. The problem with new buyers currently undergoing he resale process is that they would have to get the seller to agree to terminate the contract as the agreement is between those 2 parties not the buyer and DVC. Unfortunately DVC has always explicitly said these perks could be terminated and not to purchase based on these perks. they are not park of the ownership agreement so I don't believe a buyer would be able to terminate a sale (without penalty) because these benefits were terminated.

Agreed, but if I was currently buying I would def expect resale prices to lower. 'Could disappear', and 'no longer available' is a big difference. While yes the they shouldn't be a huge buying factor, DVC literately just made them a buying factor. Intentionally. It's almost double speak.

 

[_auroraborealis_]

They might be able to add more restrictions in new associations, so, as they build new resorts. But right now, the key stuff in the contract is that they can restrict Incidental Benefits.

The property interest in your Home Resort, and the secondary resort booking, are not "incidental benefits."

DVD has always said “You should not purchase an ownership interest in reliance upon the addition of other resorts or the ability to reserve at the other existing DVC resorts after the applicable term of the DVC resorts.”

They also have said “Do not purchase your ownership interest in reliance on your ability to transfer these products, services and incidental benefits if you sell your Ownership interest or based upon their continued availability." (Referring to Concierge Collection and similar, i.e., the non DVC resort access privileges.)

Transfer and will of ownership interest is permitted. Selling and rental has always been restricted/controlled. Incidental benefits have always been defined as non-transferrable.

So it's easy for them to do what they're currently doing. It's harder to change the 11/7, save insofar as they've always said that when a resort RTUs, other resort owners ain't going to be booking there anymore neither. OKW, BWV, BCV and VWL will all RTU in 2042 (save that one part of OKW).

 

[southerngirl528]

I assume you mean no member ID cards for resale buyers. So they would be shut out of BLT's TOWL lounge as well, plus not be eligible for any member discounts.

There will be no member cards for resale buyers going forward but the text states that when resale buyers log into their DVC account it will list exactly what they ARE entitled to and it looks like TOWL, pool hopping and free DVD "rentals" will still be included. At least that's the way I read it.

 

[LenInMaine]

There will be no member cards for resale buyers going forward but the text states that when resale buyers log into their DVC account it will list exactly what they ARE entitled to and it looks like TOWL, pool hopping and free DVD "rentals" will still be included. At least that's the way I read it.

I just spoke to MS about this issue as we haven't gotten our new cards yet. She said that the online card is/will be good everywhere.

 

[southerngirl528]

So maybe MF's will need to be different for direct vs resale.

MF's are for the upkeep, taxes, insurance, etc of DVC resort villas any perks or benefits.

 

[DebbieB]

MF's are for the upkeep, taxes, insurance, etc of DVC resort villas any perks or benefits.

There is a category for member activities. They would need to verify that none of the restricted activities are paid for there. Like Merry Mixer?

 

[southerngirl528]

Yes from what I heard, I'm going to call DVC today and I'll post up what I find ou

Wording states no member cards for resale buyers that buy today and afterward, but it does say that TOWL (w/normal restrictions), pool hopping and free DVC rentals will continue.

Does this mean that now I can book Disney and Concierge collections (Not that I would do it anyway)? It looks that there will be now two tiers of membership, not three. But if my ability to book the Disney collection is not affected by the change, well, I couldn't before so I shouldn't after.

Definitely no. The text clearly delineates that restriction that began in 2011 continues.

 

[pmaurer74]

The contract allows for a minimum 1 month home resort priority.

Do you mean 11 month not 1 month right?

 

[southerngirl528]

I just spoke to MS about this issue as we haven't gotten our new cards yet. She said that the online card is/will be good everywhere.

Since you are already a member, you will have a DVC Member I.D. like we members have always had. It's the folks buying on the secondary market starting today that will NOT have a member card and their digital card will be different the way I read it.

 

[_auroraborealis_]

Everything in the contract has always been that aside from your resort booking interest in DVD properties, everything is and will be subject to change.

It has to be, because the only thing that is truly conferred in the ownership interest are those properties. DVD has good control over something like TOTW, but more limited ability to set up lounges elsewhere (Epcot is being built because Disney themselves are sort of at loose ends what to do with much of Epcot and their money is tied up elsewhere right now in upgrades, let's be honest here). Member Events are being contracted with parks and DCL, much as a convention can contract with either. DVD may get discounts or special considerations (but may not). Agreements with RCI and similar are not only not 50-year contracts, but are materially impacted by the business operations of those partners and cannot be guaranteed by DVD.

 

[DebbieB]

Do you mean 11 month not 1 month right?

They could change it to 11/10 or 8/7 for example. Just 1 month priority is required, there is 4 right now (11/7).

 

[southerngirl528]

Yes If I need these perks will add 25 points direct to get access to all membership perks till DVC increases this minimum purchase to qualify as member for membership extras.

As a longtime member that bought when the minimum was over 200 points I think they should not allow someone to buy 25 points add-on JUST to get the benefits/perks. Seems very unfair to those that played by the DVC rules of purchase. Yes, I paid less per point back then, but everything cost less in the 90's...houses, cars, you name it. It's all relative. No offense but it just seems very inequitable that someone could have all perks/benefits for a 25 point purchase.

 

[LenInMaine]

As a longtime member that bought when the minimum was over 200 points I think they should not allow someone to buy 25 points add-on JUST to get the benefits/perks. Seems very unfair to those that played by the DVC rules of purchase. Yes, I paid less per point back then, but everything cost less in the 90's...houses, cars, you name it. It's all relative. No offense but it just seems very inequitable that someone could have all perks/benefits for a 25 point purchase.

But depending on where you bought, someone else could have bought direct at the same time, and not spent the same. If it were home resort only perks that would make sense, but it's not.

 

[drusba]

Do you mean 11 month not 1 month right?

The official documents provide for the 11 and 7 month periods but state those are subject to change with the only set rule being that owners of a resort must always have at least a one month advantage in reserving their own resort over owners from other resorts. Thus, Disney could shorten or lengthen that 11 month period and decrease the period between the home and non-home resort reservation period to as low as one month. When DVC began (when OKW was called the Disney Vacation Club Resort), the two periods were 11 months and 10 months. Of course at the time there was no second resort and it was changed to 11/7 before the opening of another resort. It has stayed the same since. From Disney's viewpoint, it has no reason to change it because the 11/7 rule works.

 

[supersnoop]

I am more concerned about serious restrictions concerning booking windows if they ever came into play. I wonder what percentages of memberships are currently resale vs. direct? Can they ever touch the 11 month home resort booking advantage for resale owners?

They cannot legally restrict the ability to reserve at other resorts without affecting all owners.

You own a specific part of a specific resort. That resort's condo association "joins the club," so to speak. The condo association enters into an agreement allowing other condo associations' members to book a room there, and their own members to book rooms at the other resorts. There's no way to restrict that privilege based on a class of membership.

 

[southerngirl528]

But depending on where you bought, someone else could have bought direct at the same time, and not spent the same. If it were home resort only perks that would make sense, but it's not.

When I bought anyone buying "direct" was paying the same price I did (if at the same time frame of course) because there was only ONE home resort then, Old Key West. I bought directly from DVC in the early 90's. All of my add-ons were bought direct when there was a good promo to do so.

 

[disnebraska]

We are in the middle of a resale purchase and just got word from the broker that Disney is saying anyone who submitted the resale contract for review to DVD prior to 4/4 will receive benefits. Anyone 4/4 and later will not.

 

[DebbieB]

We are in the middle of a resale purchase and just got word from the broker that Disney is saying anyone who submitted the resale contract for review to DVD prior to 4/4 will receive benefits. Anyone 4/4 and later will not.

That seems fair.