When buying DVC, the closing process is considered the most complicated part of the whole arrangement. However, with the correct information and guidance, you will go through the closing process seamlessly.
Regardless of which broker or company you are using, this process is pretty much the same.
First……….
Photo by Gabrielle Henderson on Unsplash
1. Find the right DVC package.
When you find the right DVC package to meet your family needs, you can purchase the listing at the asking price or present your offer and see if the seller is negotiable.
Once the buyer and seller come to agreeable terms, the listing can be marked “sale pending” until all other issues are tackled then the documents will be sent in for review.
2. Review and sign contract
After the verbal agreement, the next step is for the buyer and seller to sign the purchase agreements. If you are reselling your DVC points, you must sign additional contracts to verify your ownership details.
The contract will include the terms of purchase, terms of sale, DVC status points, deed information etc., essentially all the terms of the deed.
Make sure you look over these details carefully to see its accuracy, or whether it reflects on the terms you agreed upon. If you are a buyer, a deposit will be due at this point of the transaction.
3. Disney’s Right of First Refusal
The Right of First Refusal can take a bit of time to be waived. When the contract has been signed by both the buyer and seller, we send them to DVC to undergo a ROFR.
This is DVC’s right to determine whether they want to reclaim the ownership or waive their right and allow the sale to proceed.
It is difficult to determine when Disney will exercise the ROFR. If you are a buyer, our agents will advise you on offer amounts and any other stipulations to get through the ROFR.
If an offer is too low, Disney may reclaim, but any deposits made can be credited towards another sale or refunded back.
As a seller, once you accept and sign contracts, you are well on your way to closing on your ownership. Whether DVC waives or exercises the ROFR, the sale will continue.
The only difference is that Disney becomes the buyer of your contract, thus using their own title company. Usually, it takes about 30 days to hear back on the ROFR.
4. Estoppels and closing documents
Estoppel is when Disney reviews the membership and checks to see any outstanding debts against the contract.
Disney will notify the title company/ agent of its decision regarding the ROFR, and the company will write closing documents accordingly.
This process takes a few days or weeks as the title company and Disney exchange information. The title company will send independent closing documents to the buyer and seller when everything is in order.
The closing documents will include explicit instructions on how to proceed in the final step of the DVC resale closing process.
We will help facilitate communications between the title company and you. If you are unsure at any step of the way, be sure to reach out for updates and questions.
5. Finalise the transaction
Now, this is the final step of the deal. Some documents will be signed and returned; others will be notarised and returned.
The buyer will submit payment along with the signed documents, and once that is complete, you’ve completed a DVC resale transaction.
From here, you can start booking your DVC vacations.
Final word
The DVC resale process is pretty easy when you are doing it with an expert. To learn more about DVC ownership and other related information, get in touch with us today.
