DVC Glossary — Disney Vacation Club Terms Explained
By Mark Webb, DVC Sales Owner & Broker · Updated May 2026
Whether you're buying or selling DVC for the first time, understanding the terminology is essential. This glossary covers every key term you'll encounter in the DVC resale process.
A
Add-On Contract
A second (or subsequent) DVC contract purchased in addition to your original contract. Add-on contracts can be at the same resort or a different resort. Many owners buy add-on contracts to increase their annual point allotment. Add-on contracts purchased on the resale market are subject to the same resale restrictions as any other resale purchase.
Annual Dues (Maintenance Fees)
Yearly fees paid by all DVC owners to cover the operating costs of DVC resorts, including housekeeping, maintenance, insurance, property taxes, and reserve funds. Dues are charged on a per-point basis and vary by resort. They typically increase 3-5% annually. See our DVC Annual Dues page for current rates.
Availability
The rooms and dates that can be booked using DVC points at any given time. Availability varies by season, resort popularity, and room type. Home resort advantage (11-month window) gives owners first access to their home resort before it opens to all members at 7 months.
B
Banking
The process of carrying unused vacation points forward into the next use year. Points must be banked before the banking deadline, which is typically 8 months before the end of your use year. Banked points must be used within the year they are banked into — they cannot be banked again. Banking is a key feature that provides flexibility in how you use your DVC membership.
Borrowing
Using vacation points from your next use year's allotment in the current year. This allows you to take a larger vacation or book a room type that requires more points than you currently have. Borrowed points are deducted from next year's balance. You can borrow all or part of next year's points.
Breakage Points
Points that expire unused at the end of a use year — they were neither used for a reservation nor banked forward. Breakage points are forfeited and cannot be recovered. Proper point management (banking before deadlines, planning vacations) helps avoid breakage.
Buyer's Closing Costs
The fees paid by the buyer in a DVC resale transaction, typically ranging from $500-$800. These include title search, title insurance, document preparation, recording fees, and dues reimbursement to the seller for the bankable points received. Closing costs are separate from the purchase price.
C
Closing
The final phase of a DVC resale transaction where the title is officially transferred from the seller to the buyer. Closing takes approximately 30-45 days after ROFR is waived and includes title search, estoppel letter processing, document signing, and deed recording. A licensed title/closing company handles this process.
Commission
The fee charged by a DVC resale broker, expressed as a percentage of the sale price. At DVCSales, our commission is just 6.9% — the lowest in the industry. Commission is paid by the seller at closing. See our Cost to Sell page for details.
Contract
A DVC ownership agreement that specifies the home resort, number of points, use year, and contract expiration date. DVC contracts are deeded real estate interests (right-to-use timeshares) that can be bought, sold, or transferred. Each contract is tied to a specific resort and carries annual dues.
Club Activation Fee (CAF)
A $500 fee introduced by Disney in January 2026, charged on all DVC resale transfers. This fee is paid to Disney (not to the broker) and covers Disney's costs for processing the ownership change. The fee is typically negotiated between buyer and seller as part of the sale terms.
D
Deed
The legal document that proves ownership of a DVC contract. DVC deeds are recorded with the county where the resort is located (Orange County, FL for most Walt Disney World resorts). The deed specifies the owner(s), resort, undivided interest, and is a matter of public record.
Direct Purchase
Buying DVC directly from Disney (as opposed to buying resale from a current owner). Direct purchases are significantly more expensive but include additional benefits like Annual Pass discounts, Moonlight Magic events, and Disney Collection exchanges. See our Resale vs Direct comparison.
Disney Vacation Club (DVC)
Disney's timeshare vacation ownership program, launched in 1991 with the original Old Key West Resort. DVC operates as a points-based system where members purchase a deeded real estate interest at a "home resort" and receive annual vacation points to use at any DVC resort worldwide. DVC operates resorts across Walt Disney World, Disneyland, Aulani Hawaii, Hilton Head, and Vero Beach.
E
Estoppel Letter
An official document issued by Disney that verifies all details of a DVC contract during a resale transaction. The estoppel letter confirms the number of points, point status (current, banked, borrowed), annual dues balance, any outstanding fees, and membership status. Disney charges $150 for this document, and it is required for every DVC transfer. The estoppel process typically takes 7-14 business days.
Expiration Date
The date when a DVC contract ends and ownership reverts to Disney. Expiration dates vary by resort and range from 2042 (Old Key West) to 2077 (Riviera, Fort Wilderness). See our DVC Expiration Dates page for all resorts.
F
FIRPTA
The Foreign Investment in Real Property Tax Act. FIRPTA requires withholding of 15% of the gross sale price when a foreign national sells U.S. real property, including DVC contracts. If you are a non-U.S. citizen selling DVC, see our FIRPTA Tax Guide.
H
Home Resort
The DVC resort specified in your contract where you have booking priority. At 11 months before check-in, you can book at your home resort before availability opens to all DVC members. At 7 months, all resorts become available to all members (at unrestricted resorts). Choosing the right home resort is one of the most important decisions when buying DVC.
Home Resort Advantage
The exclusive 4-month booking window (11 months to 7 months before check-in) during which only owners at a specific resort can make reservations there. This is particularly valuable at high-demand resorts like Polynesian, Beach Club, and Riviera during peak seasons.
I
Interval International (II)
A worldwide timeshare exchange network that DVC members (at unrestricted resorts) can use to trade their DVC points for stays at over 3,200 resorts globally. Requires a separate Interval International membership fee (~$109/year). Resale members at restricted resorts (Riviera, Disneyland Hotel, Fort Wilderness) cannot use II.
L
Loaded Contract
A DVC contract that has all or most of its current and/or banked points still available. Loaded contracts are more valuable and sell faster because the buyer gets immediate access to usable vacation points. The opposite is a "stripped" contract with few or no available points.
M
Member Services
Disney's DVC Member Services team, reachable at (800) 800-9800. They handle reservations, point banking/borrowing, account questions, and membership support. Available to all DVC members regardless of whether the contract was purchased direct or resale.
P
Point Charts
Tables published by Disney that show how many vacation points are needed to book each room type at each DVC resort, broken down by season. Point requirements vary by resort, room size, view category, day of week, and time of year. See our Vacation Point Calculator.
Price Per Point (PPP)
The most common way to compare DVC contracts. Calculated by dividing the total price by the number of points in the contract. For example, a 150-point contract selling for $18,000 has a price per point of $120. Resale prices per point vary significantly by resort, contract size, and market conditions. Browse current listings to see today's prices.
R
Resale
Purchasing a DVC contract from a current owner (through a licensed broker like DVCSales) rather than buying directly from Disney. Resale contracts are typically 40-60% less expensive than direct purchases. See our Resale Restrictions page to understand the differences.
Resale Restrictions
Limitations on DVC membership benefits that apply to contracts purchased on the resale market after January 19, 2019. Restricted benefits include Annual Pass discounts, Moonlight Magic events, and Disney Collection exchanges. Core booking rights at DVC resorts are not affected. See our complete guide to resale restrictions.
Restricted Resort
A DVC resort where resale contracts have limited booking access — owners can only book at that specific resort and cannot use the 7-month window at other DVC resorts. Currently, Riviera Resort, The Villas at Disneyland Hotel, and The Cabins at Fort Wilderness are restricted resorts. All future DVC resorts are expected to have these same restrictions.
ROFR (Right of First Refusal)
Disney's contractual right to purchase any DVC resale contract at the agreed-upon price between buyer and seller. After a sale is agreed, the contract is submitted to Disney for ROFR review, which takes approximately 30 days. If Disney "exercises" ROFR, they buy the contract at the agreed price. If Disney "waives" ROFR, the sale proceeds to closing. Disney exercises ROFR more frequently on contracts priced below market average. For details on DVC membership, see Disney Vacation Club's official site.
S
Stripped Contract
A DVC contract where current year and/or banked points have already been used by the seller. Stripped contracts sell at a lower price per point because the buyer won't receive full points until the next use year. The degree of stripping affects value — some contracts are fully stripped while others may only be missing the current year's points.
Subsidy
A temporary reduction in annual dues that Disney provides for some newer resorts during their first few years of operation. Disney absorbs part of the operating costs, keeping dues artificially low. Once the subsidy ends, dues at those resorts increase more sharply. Be aware of subsidies when comparing annual dues across resorts.
T
Title Company
A licensed company that handles the legal transfer of DVC ownership during a resale transaction. The title company conducts the title search, prepares closing documents, collects and disburses funds, and records the new deed with the county. Several companies specialize in DVC transfers.
Transfer
The process of changing ownership of a DVC contract from one party to another. Transfers can occur through resale, gifting, or inheritance. All DVC transfers must be processed through Disney and require an estoppel letter, deed recording, and Disney's approval (including ROFR review for resale transactions).
U
Use Year
The 12-month period during which your annual vacation points are available. DVC use years start on the first day of one of eight specific months: February, March, April, June, August, September, October, or December. Your use year is set when the contract is first purchased and cannot be changed. Points expire at the end of the use year unless banked before the deadline.
Undivided Interest
The form of real estate ownership in DVC. Rather than owning a specific unit or week, DVC owners hold an "undivided interest" in the resort property as a whole. This fractional ownership is what is recorded on the deed and is proportional to the number of points in the contract relative to the total points at the resort.
V
Vacation Points
The currency of the DVC system. Each DVC contract comes with a set number of annual vacation points that are used to book rooms at DVC resorts. The number of points needed for a reservation depends on the resort, room type, season, and length of stay. Points can be banked, borrowed, rented, transferred, or used for Interval International exchanges.
W
Waitlist
A feature in the DVC booking system that allows members to request a specific resort, room type, and dates when availability is not currently open. If a matching room becomes available (due to cancellation or change), the waitlist request is automatically fulfilled. Waitlists are a valuable tool for booking hard-to-get dates and resorts.
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