Disney Vacation Club Purchasing by Resale

by Shontell Crawford

Shontell is a DVC Member and has been handling resales of the Disney Vacation Club since 1997.

Have you considered "owning" a piece of Disney yourself? Have you passed by those Disney Vacation Club kiosks and just refused to take time away from your vacation for a tour? Resales offer an alternative to becoming a DVC member, without the tour and sometimes at a significant savings. Once you have decided to own a "piece of the magic" a tough decision is how to buy – resale or direct from Disney. Here is what to expect if you decide to go the resale route.

Resales exist from private sellers who have bought from Disney, then need to sell for personal reasons. Point packages vary in size from 25 to 2000 points. Properties are sometimes available from a resale Broker that Disney no longer offers to the general public such as Old Key West, Boardwalk Villas and Villas at Wilderness Lodge.

I highly recommend working with a Licensed Real Estate Broker to protect yourself in any real property transaction, the Vacation Club is no different and you should be comfortable and confident with the capabilities of any Broker you choose to work with for your resale purchase.

There are three costs to be aware of in a resale purchase:

Your Broker should have the purchase price listed and available for you immediately. Being real property, offers can be presented and are sometimes welcomed by sellers, while others are firm on their price. Your main goal should be to try to save with a resale versus buying directly from Disney or to acquire a resort no longer available through Disney direct. Never make an offer until you are ready to buy, as your deposit and signed contract are due immediately after acceptance from a seller. If financing is involved, be sure to tell your Broker as part of your offer.

Closing costs vary based on the price, but average about $400 and a figure should be readily available from your Broker based on your specific needs.

Maintenance fees and taxes are usually pro-rated based not on the calendar year, which would be the case in a house purchase, but based on the amount of points being received for the current year's allocation from each party. If, for example, you are purchasing a 200 point contract and the seller used 175 points for the current year's allocation, then the seller would be responsible for the dues on those 175 points, while you would pay dues on the 25 points you are receiving. Occasionally you will see contracts where the seller has borrowed ahead. Under borrowed circumstances, the seller will usually pay for dues on those points as well. Always discuss this point with your Broker and be comfortable with the proration before going to the contract.

Once you have discussed and agreed to all terms of your purchase, your DVC By Resale Broker should send you a contract. Read your contract thoroughly, make sure everything makes sense to you. If it doesn't, call your Broker and ask questions. Never assume anything. If your Broker won't answer your questions or doesn't know the answer, don't sign the contract until you are comfortable. Any reputable Broker should welcome your questions and find answers for you immediately.

Sign your contract and send it back with your deposit. Deposits vary by agency, but typically 10-20% of the purchase price is customary. Most agencies cannot accept credit cards, but will take a credit card "purchase check" if necessary.

At this point in the transaction, your Broker contacts Disney and submits the contract for First Right of Refusal. Your Broker also submits everything to the Title Agency so they may begin the title search, contact Disney for the estoppel information and start preparing the legal documents required for closing. Disney has 30 days to exercise their Right, but typically takes less time. Closings can happen as quickly as two weeks, or take as long as six weeks, depending on Disney and the Title Agency. An average to expect is 30 days.

About one week before your "scheduled" closing, you should receive your closing packet via overnight carrier from the Title Agency. It includes everything you need to sign, including the new deed and your final payment. (At this point you can start to get excited because you are almost finished!) As soon as both you and the seller send everything back to the Title Agency, they send the new deed to be recorded and fax a copy to Disney so their administration can begin putting you in the DVC Member database.

Typically, Disney takes about 3-5 working days to get you into their system. About a week to ten days later, you will receive your new member packet along with your new member ID cards. At this point, you are official and can call DVC Member Services and start making your first reservation plans to go "home"! Keep in mind your legal deed will be sent to you after its official recording. This sometimes takes a few weeks, but does not limit your ownership or ability to make reservations whatsoever.

Regardless of where or how you choose to buy your Disney Vacation Club, once you are "official", you are part of an extended famliy that currently exceeds 60,000 people. We take cruises together, have unofficial "meets" and love to hear the words: "Welcome Home"!

Should you have other questions about the resale process, contact
Shontell Crawford at [email protected], 1-800-844-4099
or online at http://www.DVCByResale.com