Existing Contract

Can we use this method to eventually purchase a friend's DVC? She asked me to buy her out her contract today, but I don't see how we would ever get it approved through DVC. DH and I purchased in 1999, but sold in 2010 after giving up on having a family. Of course, less than two years later we were pregnant and now hope to fulfill our dream of taking DS to WDW. Purchasing new or resale isn't financially an option at this point. I can't help but wonder if we can be added to the contract and then pay it off and transfer title to our name? We won't do anything shady or fraudulent. I'm wondering if this is a proper way to get back into DVC. We really miss it.

We'd really appreciate your thoughts and input.
Just my thoughts, nothing more. I've seen this discussed with DVC and others but I don't recall anyone ever having actually done this. The 2 issues are normally ROFR and whether the points would remain qualified. Of course you'd have to pay it off before changing the deed to add your names. If you were just buying it, you'd have to list the actual purchase price and go through ROFR. For family they normally will do it automatically if it's a gratis transfer. IF it's not gratis, the normally ROFR rules would apply. I don't recall anyone doing it gratis to a non family member but I suspect it'd be allowed for gratis.

Technically I suspect it'd work if you paid it off and did it in 2 stages and let some time lapse in between, maybe a year. You'd likely end up with qualified points as well if they are now. I don't have access to the wording on the transfer form to see what you're actually attesting to, maybe someone else does. However, ultimately you'd be being dishonest at some point saying that it was a gratis transfer OR putting a false purchase price in order to bypass the meat of ROFR. In addition, if they're having financial trouble and declare bankruptcy, go on public assistance or similar; the courts might look back for several years and could reverse the process. So you'd have some risk there as well.
 
We won't do anything shady or fraudulent.
I'd consider this tactic to be fraud. If you've got an end result in mind, and you're going though these motions to circumvent Disney's right of first refusal, this wouldn't be a legitimate transfer.
 
I'd consider this tactic to be fraud. If you've got an end result in mind, and you're going though these motions to circumvent Disney's right of first refusal, this wouldn't be a legitimate transfer.

And it would be pretty easy for DVC to connect the dots. Payments start coming from another individual....that other individual is added to contract....original owner is removed from contract.

It also exposes both parties to risk in the event of any sort of financial problems (bankruptcy, foreclosure), divorce, death, etc.

I'm assuming @LisaL is asking this question because taking-over the friend's contract is of financial benefit to her. If true, that means the friend is probably taking some loss on the deal. What if the friend realizes that she's walking away from equity and wants to be compensated for the payments he/she made on the contract? Friendships have an unfortunate way of going sideways when there's money involved.
 
It's been a long day and perhaps I have misunderstood the responses to my question, which to be honest, I thought were pretty unkind. I always want to do things the right way, which is why I came here to ask the question. Thankfully, the folks who replied to my other question were helpful and much nicer.

BTW, I'm helping my friend put her DVC up for sale because she does have equity and should benefit from that. Best to everyone.
 


Just my thoughts, nothing more. I've seen this discussed with DVC and others but I don't recall anyone ever having actually done this. The 2 issues are normally ROFR and whether the points would remain qualified. Of course you'd have to pay it off before changing the deed to add your names. If you were just buying it, you'd have to list the actual purchase price and go through ROFR. For family they normally will do it automatically if it's a gratis transfer. IF it's not gratis, the normally ROFR rules would apply. I don't recall anyone doing it gratis to a non family member but I suspect it'd be allowed for gratis.

Technically I suspect it'd work if you paid it off and did it in 2 stages and let some time lapse in between, maybe a year. You'd likely end up with qualified points as well if they are now. I don't have access to the wording on the transfer form to see what you're actually attesting to, maybe someone else does. However, ultimately you'd be being dishonest at some point saying that it was a gratis transfer OR putting a false purchase price in order to bypass the meat of ROFR. In addition, if they're having financial trouble and declare bankruptcy, go on public assistance or similar; the courts might look back for several years and could reverse the process. So you'd have some risk there as well.


Thanks, Dean. I really appreciate your response. :earsboy:
 
I've had so much helpful information provided to me over the years that I thought I would pass along my experience of adding a name to my existing contract.

I have a 56 point VWL contract with myeslf, DH, & DM as members. I would like to add my DB to the contract so that I can get him a DVC annual pass (now premium annual pass, Thanks Claire) at the discounted rate.

Note: No dues or monies are owed for this property.

#1) I contacted DVC by phone (7/20) and informed them that I would like to add DB name to my contract. They sent me a transfer request (7/23). I also confirmed that because we were adding a name my existing ressie would be safe.

#2) Faxed back the completed transfer request (7/24), they needed names and addresses of current members, contract # and legal description of property. (ie., 0.1392% interest in unit 7A of Disney's Villas at Wilderness Lodge) As well as how the names should appear on the new deed. I also needed signatures of DH & DM as they are on the current contract.

#3) Visited the Orange County Comptroller's web-site and printed out my current contract and a few others to get a feel for what is expected on the deed. Because I had just purchased this contract 2 years ago and had a title search done then, I didn't feel the need to pay any additional monies to have another title search done and I would re-write the deed myself.

#4) Received the Waiver of Right of First Refusal from DVC (7/26). Also got a Change Request form to complete and send in later...

#5) I created a new Warranty Deed, modeled after my existing deed updating the names and addresses exactly as they appeared on the Right of First Refusal (#4), which came from the transfer request (#2)... must be consistent. Had this notarized and witnessed at no cost in our town clerks office. I updated the price paid to $10 for the lunch my brother bought for me!

#6) Mailed in the following to OCC along with a check (8/13):
Warantee Deed - $18.50 2 pages
Waiver - $18.50 2 pages
Check is for $37.70, the additional $0.70 was for < $100 deed document fee.

#7) Waited... and discovered I didn't pay for the additional names... oops! Misunderstood that part. :headache:
On the Waiver there were 8 names... DVC then me, DH & DM as the Transferor... then me, DH, DM & DB as the Transferee. So that was an additional $4.
On the Deed there were 7 names... me, DH & DM... then me, DH, DM & DB. So an additional $3.
Re-mailed (8/26) everything with an additional $7 (OCC returned my $37.70 check). I also needed to send them a Documentary Stamp Tax Explanation Form... as to why the property was < $100.

#8) Received all the original filed paperwork back from OCC (8/30) with the necessary document stamps. I was checking daily the OCC web-site so I had an idea that it was coming in the mail.

#9) Mailed the following to DVC (9/10):
Warranty Deed - copy
Waiver - copy
Change of request form (from #4) - original
with signatures, addresses, phone #'s and copies of drivers license for all 4 of us.
I believe at this point we would also have to mail a check for any outstanding dues or balances owed on the contract.

#10) Wait for our new membership cards and prepare for our November trip!

Overall the process was pretty painless... it would have been much faster if my DM & DB didn't live 3 hours away. But folks at both DVC and OCC were super helpful. (Even though I didnt "get" the pay more for more then 4 names on a document... even if they were the same names repeated twice. :bitelip:)

So all in all the cost was under $50 to add a name and it only took 2 months. the things we do for our baby brothers.... :lovestruc

Thanks for this information! Do you know if it would be the same process for transferring a deed from husband & wife to a living trust (same h & W)? And same/similar costs?
 
This is a helpful thread, though I'm afraid I still don't understand all the steps. I assume I'll come to understand them as I go along (don't even talk to me about the process of getting our house mortgage; I do not understand all the little steps LOL).

I wanted to address this one, because Disney seems to have made it just a tad bit easier.

#1) I contacted DVC by phone (7/20) and informed them that I would like to add DB name to my contract. They sent me a transfer request (7/23).

I had looked around on the DVC site, doing a search for "deed name". And it came up, even without logging in (so this page is open to all, no logging in needed, so I'm including the pages since anyone could find these), with this page here. Which has a link to this pdf.

Just in case that page wasn't as useful as I thought it was, we sent an email requesting the paperwork. And we were sent that EXACT pdf.

Since your initial post was a few years back, it seems that they've streamlined a bit to be more useful. :)
 


they needed names and addresses of current members, contract # and legal description of property. (ie., 0.1392% interest in unit 7A of Disney's Villas at Wilderness Lodge)

The current form they sent me (and is linked to above) doesn't have a space for the bolded bit.

#5) I created a new Warranty Deed, modeled after my existing deed updating the names and addresses exactly as they appeared on the Right of First Refusal (#4), which came from the transfer request (#2)... must be consistent. Had this notarized and witnessed at no cost in our town clerks office.

So you had to type it all out? I'm starting to see why people use companies to do this. :)
 
So you had to type it all out? I'm starting to see why people use companies to do this. :)
All you need is a FL specific quit claim template and the legal description then follow a few steps that you've go to do anyway for notary and witnesses then send it in with the correct fees.
 
All you need is a FL specific quit claim template and the legal description then follow a few steps that you've go to do anyway for notary and witnesses then send it in with the correct fees.

Thanks. :)

I think you're the one that wrote the following (I have it saved LOL).

The process is the following.

1. Contact DVC for the transfer paperwork.
2. Complete the transfer form and send it in for "ROFR"
3. Send FL specific Quit Claim and ROFR form plus recording fees to OC (assuming it's WDW). Recording fees should be $37.7 assuming 2 pages for each document.
4. Complete second transfer form (received with ROFR) and send it to Disney along with a copy of the recorded deed. Time saving tip, keep an eye on the OC website for the deed to be recorded and print it rather than waiting for the original to be returned to you.
 
Thanks. :)

I think you're the one that wrote the following (I have it saved LOL).
The one potential issue, and one I don't have an answer for, is whether a quit claim deed eliminates the ability for a later title insurance purchase if one goes to sell. I don't think it's a big deal but it something worth checking further on for some. I think LT transfers can get it done for under $200 total with a warranty deed.
 
The current form they sent me (and is linked to above) doesn't have a space for the bolded bit.



So you had to type it all out? I'm starting to see why people use companies to do this. :)

Actually I made nicey-nice with one of the IT guys at my office who was able to take the .PDF and turn it into a word document. I had to go through it to make sure that everything was captured accurately so there was a little editing needed, but for the most part not to bad.

I'm glad to see they streamlined a few of the things like making available the transfer request, although that was one of the easier parts of whole process.

Dean, again let me thank-you for help in getting this done... I know it has been over 4 years, but the information is invaluable.
 
Can't believe i didn't notice this. How did you receive it?

Apologies, I stopped getting notifications on this thread (I need to check my settings) After faxing the transfer request back to DVC they sent me the paperwork that I passed ROFR. Yes, even when adding a name you need to still pass ROFR.
 
This thread has been invaluable to me. I thought it would be a nightmare to add my daughter to my deed(s). I am assuming I would need to do this for every contract under my Master Account

Otherwise--- I would need to make separate reservations for each contract since the ownership would be different for each contract
 
This thread has been invaluable to me. I thought it would be a nightmare to add my daughter to my deed(s). I am assuming I would need to do this for every contract under my Master Account

Otherwise--- I would need to make separate reservations for each contract since the ownership would be different for each contract
Yes or they'll be separate masters. If you have several it might be better just to buy 25 new and add her as an associate on the rest or just transfer one. You'd end up with different masters but that might be better than taking the risks on the entire thing. That way she'd get all the benefits with less risk. There are a number of variations to this type of approach.
 
Apologies, I stopped getting notifications on this thread (I need to check my settings) After faxing the transfer request back to DVC they sent me the paperwork that I passed ROFR. Yes, even when adding a name you need to still pass ROFR.

No worries. I think my question was about the method of receiving the letter, because you got yours so fast. I actually started my own thread and when we hadn't gotten anything we finally called. They never received our fax. On their request we scanned the request and emailed it. Got the rofr letter quickly. Only to see in the info they sent with it that all dues must be paid for the year (we do a monthly plan!) and there can be no outstanding reservations (the whole point of this was so I could have a card for my upcoming reservation). So we stoooed the process.

And watch out for the reps if you talk to them. Dh got all panicked because they told him he had to do this through a title company. I asked him to have some faith in me, and then I read that you had to have all dues paid up front when that isn't how we budget them. (I get the feeling that the reservation thing could he ignored for a spouse name add, but not the dues)
 
No worries. I think my question was about the method of receiving the letter, because you got yours so fast. I actually started my own thread and when we hadn't gotten anything we finally called. They never received our fax. On their request we scanned the request and emailed it. Got the rofr letter quickly. Only to see in the info they sent with it that all dues must be paid for the year (we do a monthly plan!) and there can be no outstanding reservations (the whole point of this was so I could have a card for my upcoming reservation). So we stoooed the process.

And watch out for the reps if you talk to them. Dh got all panicked because they told him he had to do this through a title company. I asked him to have some faith in me, and then I read that you had to have all dues paid up front when that isn't how we budget them. (I get the feeling that the reservation thing could he ignored for a spouse name add, but not the dues)


Interesting... I was able to continue the process of adding my brother's name while we had an existing reservation... Surely we weren't granted with "pixie dust"... LOL!

And yes the reps might not be informed... the reason for the title company is to do a search to make certain that there are no liens against the estate of the previous property holders. So when you originally purchases there was a title search, and I'm all for that!! But to add a name to an existing contract, there shouldn't be a need for a second title search, seeing as how one was already completed on your behalf.

Good Luck!!
 
I've had so much helpful information provided to me over the years that I thought I would pass along my experience of adding a name to my existing contract.

I have a 56 point VWL contract with myeslf, DH, & DM as members. I would like to add my DB to the contract so that I can get him a DVC annual pass (now premium annual pass, Thanks Claire) at the discounted rate.

Note: No dues or monies are owed for this property.

#1) I contacted DVC by phone (7/20) and informed them that I would like to add DB name to my contract. They sent me a transfer request (7/23). I also confirmed that because we were adding a name my existing ressie would be safe.

#2) Faxed back the completed transfer request (7/24), they needed names and addresses of current members, contract # and legal description of property. (ie., 0.1392% interest in unit 7A of Disney's Villas at Wilderness Lodge) As well as how the names should appear on the new deed. I also needed signatures of DH & DM as they are on the current contract.

#3) Visited the Orange County Comptroller's web-site and printed out my current contract and a few others to get a feel for what is expected on the deed. Because I had just purchased this contract 2 years ago and had a title search done then, I didn't feel the need to pay any additional monies to have another title search done and I would re-write the deed myself.

#4) Received the Waiver of Right of First Refusal from DVC (7/26). Also got a Change Request form to complete and send in later...

#5) I created a new Warranty Deed, modeled after my existing deed updating the names and addresses exactly as they appeared on the Right of First Refusal (#4), which came from the transfer request (#2)... must be consistent. Had this notarized and witnessed at no cost in our town clerks office. I updated the price paid to $10 for the lunch my brother bought for me!

#6) Mailed in the following to OCC along with a check (8/13):
Warantee Deed - $18.50 2 pages
Waiver - $18.50 2 pages
Check is for $37.70, the additional $0.70 was for < $100 deed document fee.

#7) Waited... and discovered I didn't pay for the additional names... oops! Misunderstood that part. :headache:
On the Waiver there were 8 names... DVC then me, DH & DM as the Transferor... then me, DH, DM & DB as the Transferee. So that was an additional $4.
On the Deed there were 7 names... me, DH & DM... then me, DH, DM & DB. So an additional $3.
Re-mailed (8/26) everything with an additional $7 (OCC returned my $37.70 check). I also needed to send them a Documentary Stamp Tax Explanation Form... as to why the property was < $100.

#8) Received all the original filed paperwork back from OCC (8/30) with the necessary document stamps. I was checking daily the OCC web-site so I had an idea that it was coming in the mail.

#9) Mailed the following to DVC (9/10):
Warranty Deed - copy
Waiver - copy
Change of request form (from #4) - original
with signatures, addresses, phone #'s and copies of drivers license for all 4 of us.
I believe at this point we would also have to mail a check for any outstanding dues or balances owed on the contract.

#10) Wait for our new membership cards and prepare for our November trip!

Overall the process was pretty painless... it would have been much faster if my DM & DB didn't live 3 hours away. But folks at both DVC and OCC were super helpful. (Even though I didnt "get" the pay more for more then 4 names on a document... even if they were the same names repeated twice. :bitelip:)

So all in all the cost was under $50 to add a name and it only took 2 months. the things we do for our baby brothers.... :lovestruc
Wow.
This is completely different from our experience with Disney for this. When we first bought, only my husband's name was on the deed (long story). We are in the process of adding on through resale and wanted to get my name on both deeds. Called Disney for how to do it and were first told it's not possible. I knew that wasn't true. Called again and was told we would have to contact a title attorney and they couldn't give us any information on how to proceed. We are just going to use the closing folks for our resale and do both items at the same time.
 

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