Understanding DVC Resale contract Restrictions

Understanding DVC Resale Contract Restrictions

When purchasing a DVC contract through the resale market, certain restrictions apply that differ from direct purchases. Understanding these limitations helps buyers make informed decisions about whether resale ownership meets their needs.

Overview of Resale Restrictions

Disney implemented restrictions on resale purchases to differentiate between direct and secondary market ownership. These restrictions primarily affect supplementary membership benefits rather than the core ability to book DVC resort accommodations. The specific restrictions that apply depend on when the original contract was purchased and Disney's policies at the time of resale. Restrictions have evolved over time and may continue changing for future transactions.

Member Getaways Restrictions

Member Getaways allows DVC members to use points for stays at non-DVC hotels and destinations. Resale purchasers after certain dates may lose access to this benefit. This restriction affects vacation flexibility beyond DVC resorts. If traveling to destinations not served by DVC resorts using points appeals to you, this restriction may be meaningful. Members primarily focused on DVC resort stays may not notice this limitation.

Disney Collection Limitations

The Disney Collection provides point redemption options for Disney cruises, Adventures by Disney trips, and Disney hotel stays outside the DVC network. Resale owners may face restrictions on these options depending on contract dates. These supplementary experiences expand vacation options beyond timeshare stays. Members who would use these options should consider their value when evaluating resale versus direct purchase.

Discount and Perk Limitations

Various member discounts on dining, merchandise, and experiences may be limited for resale purchasers. The specific discounts affected have varied over time. These savings can be valuable for frequent Disney visitors. Calculate the potential value of restricted discounts when comparing resale savings against direct purchase costs. For many buyers, the resale savings far exceed potential discount value over ownership lifetime.

What Remains Unrestricted

The most important DVC benefit remains fully available to resale owners: booking accommodations at any DVC resort using your points. This core membership value functions identically for resale and direct purchasers. Home resort booking priority at 11 months and general availability access at 7 months work the same for all members. Point management features including banking and borrowing are identical. Your vacation experience at DVC resorts is unchanged.

Add-On Point Limitations

Resale owners cannot purchase additional points directly from Disney unless they first make a minimum direct purchase. This limits expansion options at sold-out resorts. However, additional resale contracts can always be purchased. If you anticipate wanting more points later, understand this limitation. Some buyers make small direct purchases to establish full benefit access, then add resale contracts for cost efficiency.

Evaluating Restriction Impact

Consider which restricted benefits you would actually use. Calculate their monetary value against the savings resale provides. Most buyers find resale savings substantially exceed the value of forfeited supplementary perks. Your vacation patterns determine restriction impact. Families focused on DVC resort stays experience minimal practical limitation. Those wanting extensive use of supplementary benefits may find restrictions more significant.

Understanding the Resale Process

Purchasing a DVC contract on the resale market involves several steps. Typically, buyers should begin by researching available contracts through licensed resale brokers. These brokers provide access to various listings and guide buyers through the process. After selecting a contract, an offer is made and, if accepted, proceeds to Disney's Right of First Refusal (ROFR). Disney has the option to purchase the contract under the same terms. If Disney waives ROFR, the sale continues with closing procedures and finalization.

Buyers should also be aware of closing costs and fees associated with resale purchases. These typically include title company fees, recording fees, and administrative costs. Understanding these expenses helps buyers budget effectively and avoid surprises.

Making Your Decision

Resale restrictions exist to incentivize direct purchases. Whether they achieve that goal depends on your priorities and budget. Most buyers determine the substantial resale savings justify accepting the restrictions. Research restrictions thoroughly before purchasing. Understand exactly what limitations apply to contracts you are considering. Make an informed decision aligned with your vacation preferences and financial priorities.

• Research resale brokers and available contracts.
• Understand the Right of First Refusal process.
• Consider closing costs and fees.
• Evaluate the impact of resale restrictions on your vacation plans.

Ultimately, the decision to purchase a DVC resale contract should be based on a careful assessment of your vacation habits, the importance of supplementary benefits, and your financial situation. By thoroughly understanding the restrictions and processes involved, you can make a choice that best fits your needs.