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-   -   Trading resort contracts (http://www.disboards.com/showthread.php?t=3106151)

zgirlz 05-03-2013 10:12 PM

Trading resort contracts
 
We have been reading and learning as much as we can from these threads. Enough to feel confidant enough to actually purchase a contract. Have not closed yet but did pass Disney. Then went right back on and submitted another bid that was accepted, now waiting all over again. But I have seen people who have sold some of their contracts to purchase another one at a different resort. Is it possible or legal, for owners to trade contracts? Or because of Disneys ROFR they would not let that happen? Thought it an interesting concept, but may have answered my own question.

disneynutz 05-03-2013 11:46 PM

The contract would need to pass Disney's ROFR.

:earsboy: Bill

Joey7295 05-04-2013 02:38 AM

If by trading contracts you mean selling your current resort and buying at another resort then the answer is yes

Dean 05-04-2013 05:30 AM

Quote:

Originally Posted by zgirlz (Post 48293231)
We have been reading and learning as much as we can from these threads. Enough to feel confidant enough to actually purchase a contract. Have not closed yet but did pass Disney. Then went right back on and submitted another bid that was accepted, now waiting all over again. But I have seen people who have sold some of their contracts to purchase another one at a different resort. Is it possible or legal, for owners to trade contracts? Or because of Disneys ROFR they would not let that happen? Thought it an interesting concept, but may have answered my own question.

If you're asking just to trade and bypass ROFR, the answer is no. It would technically and legally be a situation where I was selling you mine and you were selling me yours. DVC would have ROFR on both INDEPENDENTLY. Plus there is a financial reality of closing and likely commissions on BOTH sides. It generally makes more sense to just do a smaller add on for the new resort. Exceptions are sometimes where you're downsizing significantly in number of points or resort demand or both. If it's family or a close friend there is another way to approach this but it takes time and trust and is likely not appropriate to discuss here on DIS.

The natural question that goes with your OP is this. Is it possible to word the contracts in such a way to force ROFR and the answer there appears to be no as well. I can tell you that I did a swap for DVC with a non DVC timeshare where the contract read that the payment for DVC was the non DVC timeshare (honestly so). DVD came back and made us resubmit with a dollar amount for value. I suspect if we'd have pushed it we could have eventually been successful if we'd just said no and kept it the way it was but I wanted to complete the deal so I didn't take that chance. Plus the values were truly in the range where they wouldn't have taken it by being honest about the dollars put down.

lovin'fl 05-04-2013 07:43 AM

Couldn't you gift your , say, OKW contract to someone who has , say, BWV and then they gift you their contract? Gifted contracts automatically pass ROFR. You would REALLY need to trust each other and I think both parties would need to feel it's a even/fair trade. I'd love to trade my OKW for BWV, but am sure I'd have to take a smaller BWV contract (so my 200 points for 170 BWV points). And both would have to be equally loaded or equally stripped. Seems like an almost impossible task. Just easier to sell and buy where you want. My DH is very happy with having the most points for his money, so we will never do it.

sweetdana 05-04-2013 08:08 AM

Quote:

Originally Posted by lovin'fl (Post 48294804)
Couldn't you gift your , say, OKW contract to someone who has , say, BWV and then they gift you their contract? Gifted contracts automatically pass ROFR. You would REALLY need to trust each other and I think both parties would need to feel it's a even/fair trade. I'd love to trade my OKW for BWV, but am sure I'd have to take a smaller BWV contract (so my 200 points for 170 BWV points). And both would have to be equally loaded or equally stripped. Seems like an almost impossible task. Just easier to sell and buy where you want. My DH is very happy with having the most points for his money, so we will never do it.

Hmmm interesting, if this "passes" I would assume you also would fall into direct purchase (- assuming both were direct owner). I also assume a great deal of trust to be needed. As it is not a gift if contingent on getting there contract instead. It would need to be. I gift you mine with no expectation of you giving me yours. ... Or that would be something of value :) I am thinking if this is a loop hole it would eventually be fixed if bigger resale changes happened. Like you cannot receive a gift from a giftor, or you must prove a relationship idk. But creative... If it worked.

Dean 05-04-2013 08:08 AM

Quote:

Originally Posted by lovin'fl (Post 48294804)
Couldn't you gift your , say, OKW contract to someone who has , say, BWV and then they gift you their contract? Gifted contracts automatically pass ROFR. You would REALLY need to trust each other and I think both parties would need to feel it's a even/fair trade. I'd love to trade my OKW for BWV, but am sure I'd have to take a smaller BWV contract (so my 200 points for 170 BWV points). And both would have to be equally loaded or equally stripped. Seems like an almost impossible task. Just easier to sell and buy where you want. My DH is very happy with having the most points for his money, so we will never do it.

No for several reasons. First, it's illegal to submit a contract that isn't reflective of the the true amount, it's considered fraud. This is true for RE in all states I know of. It'd also be easy for DVC to see what was going on. They are not required to allow gifts to automatically ROFR but they routinely do, esp for family.

zgirlz 05-04-2013 10:05 AM

Thank all of you for the information! As I was stating the question I started to believe I was answering it at the same time with Disney's ROFR. But thought I would finish it any way. Plus with all the knowledgable people on here, I thought it would have been done already, if it was possible.


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