Being a DVC owner has many amazing benefits. For Disney fans it’s the perfect vacation ownership program for years of Deluxe Disney Vacations for you, your family and friends. However, there comes a time for some of us when life changes and we can no longer take advantage of DVC’s amazing membership and benefits.
If you’ve been a DVC owner for many years, did you know that you don’t have to remain an owner for the life of your contract? Yes, that’s correct, DVC owners can sell their contracts to another individual at any time. If your lifestyle has changed and you feel that you won’t be able to take advantage of DVC and its benefits in the coming years, here are some tips on how to sell your DVC contract and why now may be the best time to sell.
Why Now Might Be The Best Time To Sell Your DVC Contract
The end of the year is a great time to sell your DVC contract. Why? It all has to do with maintenance fees. Each year maintenance fees are released at the end of the year and are due by January 15 of the following year.
As an owner, if you sell your DVC contract prior to the due date of those maintenance fees and don’t use next year’s points, you won’t be responsible to pay these annual dues. Instead, the buyer, aka new owner, will pay these dues as they will have access to next year’s points.
Therefore, if you are thinking about selling your current DVC contract for any reason, contact our team at DVC Shop Resales and we’ll assist you in listing your contract for sale.
How To Sell Your DVC Contract and How Long Does It Take?
There are several steps that you’ll need to take in order to sell your DVC contract.
1. List your contract for sale with a knowledgeable broker and resale company
If you’re interested in selling your DVC contract, we always recommend working with a reputable and knowledgeable DVC Resale company. Be sure to choose a company that specializes in DVC and will represent your best interests.
If you choose to list your DVC contract with DVC Shop you will complete a detailed listing agreement detailing your listing terms. These listings agreements are completed online for your convenience.
DVC Shop and our team have over 15 years experience in selling DVC contracts and will work with you every step of the way for a smooth sale process. The DVC Shop team includes Bee Thaxton who is well known in the DVC community as an expert in DVC membership and sales. With her knowledge of the DVC resale process coupled with the marketing techniques of DVC Shop, we facilitate over 300 DVC sales per year.
2. Through the broker and resale company, locate a buyer for your contract
A knowledgeable broker will help guide you in pricing your contract competitively for the current market and locate a buyer for you. In order to find a buyer, your broker will use different strategies and techniques to market your contract to potential buyers and find someone interested in purchasing your contract.
3. Sign the sales contract
As with any real estate transaction, once you have a buyer and have agreed to the sales price and terms, you’ll sign a sales contract. Working with a knowledgeable company like DVC Shop will ensure that your contract includes all the necessary stipulations to ensure a smooth sale and transfer of ownership.
4. Submit the sale contract for Right of First Refusal
Timeline: up to 30 days for Disney to review + 3-4 weeks for estoppel
The Right of First Refusal is a clause in every DVC contract that states that Disney must review and approve any sale of a DVC contract. Disney has the right to waive the Right of First Refusal or to exercise their Right of First Refusal.
Waive means that Disney will allow you to sell your contract to your buyer as planned.
Exercise means that Disney will purchase your contract for the price you agreed to sell to your buyer, essentially replacing the buyer in your sale.
Again, it’s important to work with a reputable and knowledgeable DVC Resale broker to ensure that the Right of First Refusal request is property submitted to Disney for the sale of your contract.
5. Transfer ownership to the buyer
Timeline: approximately 10-14 days for recording, 10-14 days for release of funds
Similar to the sale of residential and commercial real estate, there are a set of documents that will need to be executed by both you and the buyer in order to properly transfer ownership to the buyer. These title documents should be prepared by a title company.
DVC Shop works with licensed title companies to prepare, execute and record these documents to ensure the proper transfer of title.
During this step a new deed is recorded with the county and your contract is legally transferred into the buyer’s name. The title company will then send you your funds for the sale of your contract. Any loans dues, real estate commission dues and any maintenance fees due are dedicated from the sales price before the funds are sent to you as the seller.
6. Submit all documents to Disney to transfer your membership to the new owner
Timeline: approximately 3-4 weeks
The last step of the sale process is to provide Disney with all necessary documentation to transfer your membership to the new owner.
To ensure that proper transfer of the membership and details, the title company will provide all necessary documentation to Disney. Once Disney receives and processes the documentation the membership will be transferred!
Since the sale of a DVC contract is a legal transaction that requires several steps to complete accurately and timely, working with a company like DVC Shop is highly recommended. A resale company familiar with the steps needed for a DVC Resale is essential in ensuring a quick and smooth sale and transfer process.
If you’re a DVC owner and feel that you would like to sell your DVC contract for any reason, contact us at DVC Shop today to start a conversation about selling. Our knowledgeable and helpful staff will discuss your options and help you make the best decision based on your circumstances.
Contact our DVC Shop Resales team today to get started.
*Note that due to the COVID-19 pandemic, Disney is processing documents at a slower pace. Expect up to a 4-6 week delay for each of steps 4-6 above.
Katherine Rand
DVC Shop Editorial Team
