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Thread: Selling DVC

  1. #1
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    Aug 2014
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    Gulf Coast of Florida

    Selling DVC

    Never thought it would come to this, but we started out by asking DVC how to sell our DVC points. They told us they don't do that and good luck.
    We had canceled Disney + and did not renew our annual passes and this was our last connection to WDW.
    We looked online and found dvcresalemarkets and they got right on it. Sold our points in one day.
    Then Disney got involved and we had to wait 30 days for their right of first refusal. They took the whole 30 days to say no then we had to wait another 3 weeks to close.
    Finally got that done. We are disgusted with Disney politics and pricing schemes. I loved WDW, everything about it.
    Maybe someday they will get back to basics, but I doubt it.
    Have really enjoyed some of the trip reports and other writing on Mouseplanet.


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  3. #2

    I went back and looked at our last resale purchase. We made an offer on 11/24ish, which was confirmed and countered on 11/25. We accepted the counter that same day. The next day, the seller signed the proposed contract, and we signed on 11/27. We were lucky and Disney passed on their right of first refusal on 12/2 - but I think they only passed because they knew that the seller was upside down. We weren't sent the closing documents until 12/20, which we couldn't sign as drafted because it included a FIRPTA waiver that we (properly) refused to sign, which almost caused the sale to be cancelled. Fortunately, it did go though, and we closed on 1/19, a few days before the scheduled 1/25 closing.

    So even though Disney passed our right of first refusal in a week, it still took nearly two months to close.

    I'm surprised that you started with asking Disney how to sell. I expect that many on this message board and others could have given you guidance/recommendations (and warned you about the right of first refusal). I'm sorry that it got to the point that you chose to cut ties and sell your DVC timeshare, but I'm guessing that depending on when you bought, you were able to sell for more than your purchase price, which is pretty rare for most timeshare programs. I don't think any timeshare programs will buy back points directly - unless you're using one of the "exit" programs that I hear so frequently on the radio. And even those programs seem to have limited success for most non-Disney timeshares.

    I remember the eight year boycott of Disney from the Southern Baptists. I don't think that had much impact on Disney's policies and I doubt their current tiff with Florida will result in lasting change either. Although, it will be interesting to see what happens with Reedy Creek.


  4. #3
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    Aug 2014
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    Gulf Coast of Florida

    Hey currence, thank you for the feedback, I had no idea what a FIRPTA waiver is but now I will look it up. I don't think I saw that in our documents.
    And yes, we did make a profit on our sale and yes I have no delusions that my disgust with Disney corporate will have any impact on their behavior. From what I hear the parks are packed and DVC is doing very well.
    And the reason I asked Disney was because I thought it would be a no brainer. If dvcresalemarket can sell this in a day, why can't Disney do that?
    Thanks again for the feedback.


  5. #4

    As long as you're based in the United States, the FIRPTA doesn't apply. It's the Foreign Investment in Real Property Tax Act and involves the buyer of a property that's being sold by a non-US citizen having to withhold and remit to the U.S. Government a percentage of the sales price so that if there are capital gains the government gets their money. And if there aren't capital gains, then the foreign seller can (at least in theory) file taxes or paperwork or something and get the money back. You don't have to withhold if you plan on living in the property for something like 1/2 of the year (which is pretty obviously not going to happen for a timeshare - although we joked that maybe we could convince Disney to let us leave a sock in a corner of whatever specific unit we theoretically own) and the timeshare company we used, that had originally given us paperwork saying that the FIRPTA would be withheld, tried to get us to sign a waiver claiming that we qualified for a waiver and would indemnify the attorney/escrow agent from anything bad that happened due to the non-withholding. Which I think they were only pushing on us because the seller didn't understand the withholding requirement and that put them upside down on the property. So between losing the sale since the seller couldn't perform, and getting us to sign a waiver that could have caused us a fairly substantial tax penalty for failure to withhold, they wanted to gamble that we wouldn't be audited.

    And frankly we might have signed without knowing better, except for the language holding the attorney/escrow agent harmless, which caused me to look up the code and realize that we did not actually qualify for an exception. And then the resale company we were using still tried to convince us that we should sign anyway "because it wasn't meant to apply to timeshares," including having us talk to the attorney/escrow agent. And when we still said no, and threatened the liquidated damages clause in the contract, suddenly we were told that we were good to close.

    Other than their right of first refusal, Disney lets the secondary market determine the value of the timeshares. Having just watched a friend buy and sell their main property, I can't imagine the headaches Disney would have if they bought directly from individuals, since market prices fluctuate daily. Disney would be opening themselves up to all sorts of discrimination suits when their "person who had different racial/ethnic/socio-economic/lifestyle than me was offered more money that I was even though interest rates/market prices/non-discriminatory reasons mean that my property is currently worth less."

    Sorry, I didn't intend to get on my soapbox in your thread! I hope that you still hang out in Mouseplanet from time to time. I've enjoyed many of your posts.


  6. #5
    Registered User
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    Aug 2014
    Location
    Gulf Coast of Florida

    Thank you for that explanation currence and thank you very much for your kind words about some of my posts.
    I think I am much more sensitive to what is going on than most because of what I have been studying for the last few years. It is pretty much all out in the open now, but they kept it under wraps for quite a while.
    My posts lately have not been much in line with what this forum is about so unless I have something to say about that, I won't be posting anymore about what I have seen and heard concerning the direction Disney has been going in for quite some time.
    I still appreciate when people take the time to write trip reports, especially Sue Holland who has pretty much taken up the mantle for all of us.
    And I am sure I will still read Alan's weekly WDW report just because I have been doing it so long and it no longer makes me pine for the parks like it used to. The bloom is all the way off the rose for me.
    Thanks again for the conversation.


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