Purchasing a Disney Vacation Club (DVC) resale contract is a popular and cost-effective option to become a DVC member. However, understanding the fees involved in the process is key to ensuring that you’re financially prepared. While resale contracts can offer lower costs compared to buying directly from Disney, there are several expenses that potential buyers need to consider. Below, we’ll break down the expected fees to help you budget accordingly when purchasing a contract through DVC Shop.
Deposit Fee
When making an offer on a DVC resale contract, one of the first expenses you’ll encounter is the deposit.
- The deposit is typically around 10% of the purchase price and is required once an offer is accepted.
- This amount is applied toward the final amount due at closing. It also secures the contract while it moves through processes like the Right of First Refusal (ROFR) and closing preparations.
- The deposit is held in escrow by the title company.
It’s important to note that the deposit differs from the down payment. While the deposit secures the contract upfront, it may be forfeited if the buyer defaults on the agreement.
Down Payment
If you plan to finance your DVC resale purchase, you’ll need to account for a down payment as part of the overall costs.
- The down payment is the portion of the total purchase price not covered by your loan.
- Lenders typically require a down payment of 5-20%, depending on the financing options you choose.
- This amount is paid at closing to finalize the sale.
For example, if you purchase a contract for $20,000 and finance $18,000, you would need to pay a $2,000 down payment in addition to any closing costs.
Closing Costs
Closing costs are fees associated with processing and completing the real estate transaction. These costs can vary depending on factors like the title company used, the resort’s location, and the size of the contract.
Possible closing costs may include:
- Title and escrow fees: Paid to the title company managing the transaction.
- State taxes or recording fees: Fees required for officially recording the sale.
- Wire transfer fees: Costs incurred when transferring funds electronically.
- Loan processing fees: Applicable if you’re financing your contract.
Typically, closing costs range from $800 to $1,400, depending on the specifics of the contract.
Annual Dues
Annual dues are a key component of DVC ownership and must be accounted for when purchasing a resale contract. These dues cover maintenance, operations, and renovation costs for the resort where your points are allocated.
When buying a resale contract, you may encounter the following scenarios for annual dues payments:
- If the seller has already paid dues for the year, you may reimburse them for the prorated amount at closing.
- If no points remain for the current year, the seller may credit you for the dues already paid.
- If the contract includes unused or “banked” points, you may need to cover dues for the current year as well.
Dues are calculated based on the number of points in your contract and the resort’s specific annual rate per point.
Estimating Your Upfront Costs
Here’s a summary of the typical expenses involved in purchasing a DVC resale contract through DVC Shop.
| Expense | Estimated Cost |
|---|---|
| Deposit | 10% of the purchase price (credited at closing) |
| Down Payment | 5-20% of the purchase price (if financing) |
| Closing Costs | $800-$1,400, depending on resort and contract size |
| Annual Dues | Varies by resort and contract specs |
Final Thoughts
Purchasing a DVC resale contract through DVC Shop can result in significant savings compared to buying directly from Disney, but understanding the associated fees is essential. By planning for the deposit, down payment, closing costs, and annual dues, you can be better prepared for the financial commitment that comes with DVC membership.
Whether you’re financing or paying in full, knowing these expenses upfront allows you to budget accurately and ensures a smoother transaction process. DVC Shop is here to assist with your purchase and make your pathway to DVC ownership as seamless as possible!
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Stay At Deluxe Resorts For Less
If you’d like to view confirmed reservations for rent at Disney’s Deluxe resorts, you can experience Disney’s most luxurious resorts for less, even without being a DVC member! If you’re interested in becoming a member, and joining the DVC family, you can save thousands by shopping from our current DVC resale listings.
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Written by
Rachel Van Norman
Contributing Writer
Rachel fell deeply in love with all things Disney as a little girl. Now as a wife and a mother herself, she shares this Disney obsession with her son and everyone around her. From her love of princesses to eating all the Disney food, Rachel spends her time radiating Disney magic and keeping everyone up to date on Disney news.
