Is there a reduced version of ROFR for sales to family?

[bwvBound]

If I were to find a buyer for our contract within family ... does the process still require the traditional ROFR or is that waived for certain family relationships?

Thx!

 

[supersnoop]

ROFR is waived when you give a contract away, but if there is money (or any consideration) involved, Disney has the right to step in and take it.

 

[bwvBound]

Thanks, @supersnoop.

I think an old thread from 2006 also offers some insight:
https://www.disboards.com/threads/can-you-sell-your-dvc-to-a-family-member.1011787/

You can will it but you cannot sell it, even to a child, without clearing ROFR. Disney will tend to give an automatic waiver for an immediate family member but I don't know where they draw the line and how they do this.

 

[SL6827]

So money could be swapped under the table for this type of situation?

 

[Ben E N]

So money could be swapped under the table for this type of situation?

Yes, you could just change the name on the deed for a nominal fee and then take a personal check. Could be fun explaining it to the IRS, but I do not think Disney can step in the way if it is a family member.

 

[supersnoop]

So money could be swapped under the table for this type of situation?

That would be fraud and you’d forfeit your contract if you were caught.

 

[Ben E N]

That would be fraud and you’d forfeit your contract if you were caught.

As long as it was family, it could be called a gift. Any other exchange of money could be for an unrelated transaction. Nothing I would recommend jumping too deep into, but if it is a close family member it could be an easy and fair transaction.

 

[CarolMN]

ROFR is waived when you give a contract away, but if there is money (or any consideration) involved, Disney has the right to step in and take it.

Disney has been waiving ROFR for gifts to family, but is not required to do so.

Yes, you could just change the name on the deed for a nominal fee and then take a personal check. Could be fun explaining it to the IRS, but I do not think Disney can step in the way if it is a family member.

That would be fraud and both parties would be subject to criminal prosecution. Again, Disney has no legal obligation to waive ROFR.

 

[SL6827]

I'm sure it would be considered fraud. No worries here, ain't nobody getting my DVC! LoL.

 

[supersnoop]

As long as it was family, it could be called a gift. Any other exchange of money could be for an unrelated transaction. Nothing I would recommend jumping too deep into, but if it is a close family member it could be an easy and fair transaction.

Fraud is based on intent. Is each transaction dependent upon the other? Calling the two transactions "gifts" when your intent is to get around the requirement fits the definition of fraud.

 

[Ben E N]

Fraud is based on intent. Is each transaction dependent upon the other? Calling the two transactions "gifts" when your intent is to get around the requirement fits the definition of fraud.

I wouldn't risk or reccomend it myself. Just saying it's possible to do, not something you should actually try.