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Resale Restrictions

January 6, 2019

New DVC Resale Restrictions

Effective for resale purchases submitted on or after January 19, 2019: Disney Vacation Club resale contracts purchased for the original 14 DVC resorts will only be able to exchange into those 14 existing resorts in the DVC network. These contracts will not be able to transfer into Disney’s Riviera Resort, Reflections – A Disney Lakeside Lodge and possibly additional future properties in the DVC system. All Members will still be able to exchange with RCI.

Once sales of Disney’s Riviera Resort begin, members who purchase a resale of Disney’s Riviera will only be able to stay at Disney’s Riviera Resort in the DVC network. Those Members will still have access to RCI.

What if I am in the process of purchasing a DVC Resale now?

Any contracts submitted to Disney for a right of first refusal (ROFR) before January 19, 2019, will be “grandfathered.” Therefore by purchasing before January 19, 2019, that contract can be used at the original 14 resorts; in addition to the Riviera, Reflections and future resorts.

What are the Best options after January 19th, 2019?

The Disney Vacation Club program is about flexibility and the idea of staying at different locations within the network. Will members still have the ability to do this? Absolutely! The 14 existing DVC resorts are most likely the best Disney may ever have to offer. And will likely remain the most popular resorts for years to come. All DVC is close to Disney Theme Parks, thus making them ideal vacation locations. The popularity of Bay Lake Tower is because it is a 5-minute walk to the Magic Kingdom. Members have the options of owning a home resort on the monorail, the Polynesian, Grand Floridian as well as Bay Lake Tower.

Who will Receive the Greatest Restriction?

This new restriction will significantly impact members who opt to purchase a Rivera contract directly from DVC. If -but most likely when- those members decide to sell their contracts. The current restriction in place will significantly reduce the value of their agreement on the resale market. If the member buys the contract from Disney and holds it for 50 years or until the contract expires. The member will not feel the impact of the restriction. If, however, they choose to sell their contract at some point, this asset has far less value on the resale market. Buyers rarely plan to sell when they are in the process of buying a membership. However, the reality is that many members find themselves selling after 10-15 year. Life changes and they find themselves needing or wanting to sell.
Future Value

When receiving our training from Disney, we were taught to never refer to membership in the Vacation Club as an investment. Vacation Club memberships are an investment in future vacations. More than likely, we will see Rivera contracts appear on the resale market within 6-8 months of Disney selling them. When this happens, we can assess the resale value of a Rivera contract.

In purchasing a $30,000-$50,000 Rivera contract, buyers risk the resale value being a fraction of the cost with a year. Of course, this is just speculation and only time will tell. We certainly think this is something direct buyers need to consider strongly.

 

Resale Restrictions