Buying Resale DVC as a Canadian Questions

[Yahweh]

If someone has gone through this process there are a couple of questions I have

1. What are the hidden costs when buying from resale? I know there are closing costs, possible yearly dues that haven't been paid yet, and exchange rate. Are there taxes on top of all that? or anything else I don't know about

2. Speaking of Taxes are there annual property taxes that are not covered in the yearly dues?

I probably have a few more that will come to me, but if anyone knows the answer to these I'd greatly appreciate it!

 

[von Monster]

Bought a few years ago resale (and direct) so here's what I know:

1./ None - the only thing I can think of is if the broker charges an additional management fee - ie Fidelity charges $200 to the buyer. Otherwise you've covered the exchange rate (DON'T USE YOUR BANK!) and they are no additional taxes on the sale
2./ Nope, dues cover everything.

Be aware the DVD (the Disney Vacation Club Sales arm) has changed the conditions required to be a 'full' member again to a minimum of 75 direct-from-disney points in order to be eligable for the DVC 'perks' so if you're just buying resales it's for the stay only.

 

[Madame]

If someone has gone through this process there are a couple of questions I have

1. What are the hidden costs when buying from resale? I know there are closing costs, possible yearly dues that haven't been paid yet, and exchange rate. Are there taxes on top of all that? or anything else I don't know about

2. Speaking of Taxes are there annual property taxes that are not covered in the yearly dues?

I probably have a few more that will come to me, but if anyone knows the answer to these I'd greatly appreciate it!

We bought 200 SSR in Jan 2016 and just closed on 270 BCV last week. No hidden taxes, unless you rent out your points - they should be claimed on your Canadian income tax filing, but you can account for maintenance fees on those points which lessens the sting a bit.

The exchange rate is a killer, but unavoidable. There are closing costs which differ with each closing company. You have the right to request the company of your choice and do not have to simply take the one the broker normally deals with. Here are rounded numbers in USD for our BCV contract to give you an idea of the "hidden" fees. We dealt with *** title company.

2018 dues (we got the Aug 2018 points)

$340 title fee
$205 title insurance
$19 recording charges
$250 state tax / stamps
$45 charge for using credit card for deposit
$45 charge to wire the balance.

HTH

 

[von Monster]

$45 charge for using credit card for deposit
$45 charge to wire the balance.

We used First American Title and they didn't charge either of those fees - they required the deposit on a CC as we were international buyers to make the refund in case of ROFR easier and there wasn't a wire fee either from my records. Unless that was you bank?

Just grabbed my file - this is exactly what we paid:

Title Charges & Escrow / Settlement Charges:
Search Fee * to First American Title Insurance Company 50.00
FL Statutory Surcharge to First American Title to First American Title Insurance Company 3.28
Courier Fees Reimbursement to First American Title Insurance Company 50.00
Closing Services Fee to First American Title Insurance Company 350.00

Government Recording and Transfer Charges
Record Warranty Deed to Orange County Comptroller 27.00
Record Waiver to Clerk of the Circuit Court 19.50
E-Recording Service Fee to Clerk of the Circuit Court 3.00
State Documentary Transfer Tax to Orange County Comptroller 79.10

There was also a $50 closing holdback we were refunded post transaction they wanted 'just in case'. You could also add Title Insurance if you want - the value of that would be up to you.

 

[Madame]

We used First American Title and they didn't charge either of those fees - they required the deposit on a CC as we were international buyers to make the refund in case of ROFR easier and there wasn't a wire fee either from my records. Unless that was you bank?

Just grabbed my file - this is exactly what we paid:

Title Charges & Escrow / Settlement Charges:
Search Fee * to First American Title Insurance Company 50.00
FL Statutory Surcharge to First American Title to First American Title Insurance Company 3.28
Courier Fees Reimbursement to First American Title Insurance Company 50.00
Closing Services Fee to First American Title Insurance Company 350.00

Government Recording and Transfer Charges
Record Warranty Deed to Orange County Comptroller 27.00
Record Waiver to Clerk of the Circuit Court 19.50
E-Recording Service Fee to Clerk of the Circuit Court 3.00
State Documentary Transfer Tax to Orange County Comptroller 79.10

There was also a $50 closing holdback we were refunded post transaction they wanted 'just in case'. You could also add Title Insurance if you want - the value of that would be up to you.

No idea, but we were charged a wire fee with our BLT that got ROFR'd and that was with First American. Our deposit was larger than what FA would allow on a credit card. The fees we've paid for our wires were all different amounts, so I assumed it was based on the amount wired.

 

[Yahweh]

Thanks everyone that is very helpful!

 

[Yahweh]

1./ None - the only thing I can think of is if the broker charges an additional management fee - ie Fidelity charges $200 to the buyer. Otherwise you've covered the exchange rate (DON'T USE YOUR BANK!) and they are no additional taxes on the sale

What would be the best way to avoid using my bank with regards to the exchange rate?

 

[von Monster]

What would be the best way to avoid using my bank with regards to the exchange rate?

I've used both https://www.vbce.ca/ and XE.com in the past - VBCE had better rates; the more you move through them the better the rate. They'll also register your transaction with FINTRAC and wire the funds for you all in one shot, or you can have them deposit the funds into your Canadian USD account. Website can be a bit confusing - you want the VBCE Online tab at the top.

I've also heard of others using https://www.knightsbridgefx.com/ or https://www.ofx.com/ as well, but I can't say personally as I haven't dealt with either.

For dues make sure you get a a 0% forex credit card - the only two decent ones left are the Home Trust Visa (free) or the Scotia Passport Infinite (~119/year?). You could also go the Rogers WE route but that seems over complicated to me.

 

[Yahweh]

I've used both https://www.vbce.ca/ and XE.com in the past - VBCE had better rates; the more you move through them the better the rate. They'll also register your transaction with FINTRAC and wire the funds for you all in one shot, or you can have them deposit the funds into your Canadian USD account. Website can be a bit confusing - you want the VBCE Online tab at the top.

I've also heard of others using https://www.knightsbridgefx.com/ or https://www.ofx.com/ as well, but I can't say personally as I haven't dealt with either.

For dues make sure you get a a 0% forex credit card - the only two decent ones left are the Home Trust Visa (free) or the Scotia Passport Infinite (~119/year?). You could also go the Rogers WE route but that seems over complicated to me.

Thank-you so much for the advice!