# DVC Members - A question about your deeds?



## SueDonJ (Sep 15, 2015)

There's an interesting thread in the Marriott forum - Can you sell a portion of your DC Purchase? - about how the deeds are written for Destination Club Points and whether they're similar to DVC deeds in one respect:


Seaport104 said:


> ... Is Disney similar to Marriott in a sense that they list out each beneficial interest or block of point separately? ...


A Marriott Deed is attached to Post #4 in the thread.  Any DVC Members want to join us there to explain how your deeds are similar/different, and why you can't break up a single contract to sell fewer DVC Points than the total?  Thanks!


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## frank808 (Sep 15, 2015)

When you purchase dvc points they are deeded for the specific resort and the amount of points being purchased.  They are not in a trust like marriott dc points. 
When you sell you cannot break up the deed to sell a portion of it.  It is an all or nothing deal.  The way dvc owners work around this is to break up your total purchase into smaller deeds if buying directly. That way you can sell the points if your needs change.  Here is an example.
If you bought 100 points on one deed you would have to sell the whole deed as it is one item.  However at time of your 100 point purchase from dvc you broke it up into four 25 point deeds then you would be able to sell one 25 point contract and keep the other three.
That is why some dvc owners will have 10 deeds of 25 points each.  Hope this answers your questions sue.


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## icydog (Sep 26, 2015)

That's crazy having multiple 25 point contracts. I would say the least one should buy would be 100.. Those contracts sell for the most money. 
If you buy re-sale you're stuck with a contract that you didn't design.  So you may not find your perfect contract size. 

The way Disney works is you have a master contract say number 8880000 that gives you 100 points at Disney's Beach Club Villas March Use Year 
Then underneath that master you will have additional contracts with the same use year but not necessarily the same resort that will look like this 
8880000.01 Disney's Beach Club Villas 150 points
8880000.02 Disney's Old Key West Resort 195 points
8880000.03 Disney's Bay Lake Towers Resort 250 points. 

If you had a contract with another use year rather than March you would have another Master Contract. 

When you go to sell your points you can sell them individually. For instance I can sell my 250 points at Disney's Bay Lake Towers without affecting my other contracts. If I were to sell my master contract and all the sub contracts my membership would be over, cancelled, kaput! 

I hope that clears up how point contracts are handled at Disney Vacation Club.


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## frank808 (Sep 27, 2015)

Check the resellers, contracts as small as 25 points to 50 points command a premium over the 100 point contracts.  Small contracts also sell very quick.  Check out mouseowners.com


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## vacationhopeful (Sep 27, 2015)

Small contracts are looked for by some for the discounts for the Annual Pass (for instance). 

I have a 90 point AKV contract. I bank a year and can borrow from the 3rd year  to get a booking that I want. Disney is NOT a cheap vacation ... onsite without a car helps in costs (no rental car) but dining costs must be considered.


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## chriskre (Sep 27, 2015)

frank808 said:


> However at time of your 100 point purchase from dvc you broke it up into four 25 point deeds then you would be able to sell one 25 point contract and keep the other three.
> That is why some dvc owners will have 10 deeds of 25 points each.  Hope this answers your questions sue.



I wish I had known this was an option when I initially purchased.
This makes having Priority booking easier if you split up the points among several resorts.  

And as you have noted those small contracts also command a premium when sold although 
the commissions might eat up any profits to the owner.


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## frank808 (Sep 27, 2015)

Commission costs on four 25 point contracts versus a 100 point contract will be the same.  It is a percentage of the sale price.  
One negative about having multiple small contracts is that you have to signs many, many times at closing.  That is one reason we have never done a contract less than 50 points.


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## icydog (Sep 27, 2015)

frank808 said:


> Commission costs on four 25 point contracts versus a 100 point contract will be the same.  It is a percentage of the sale price.
> One negative about having multiple small contracts is that you have to signs many, many times at closing.  That is one reason we have never done a contract less than 50 points.



I still contend that having many 25 point contracts is a major pain in the 
you-know-what. When you make reservations you have to pick each contract to have points subtracted from. With 25 point contracts this could take forever. 
I have sold my 100 point contracts with no trouble at all and I always got a premium price, say over a 270 point contract. In the olden days that's all you could get on your initial purchase. 

I checked the resale sites and you are right. The 25 and 50 point contracts are selling for more money than the 100 point contracts with all else being equal. I think it is nuts but to each his/her own.


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## chalee94 (Sep 28, 2015)

chriskre said:


> I wish I had known this was an option when I initially purchased.
> This makes having Priority booking easier if you split up the points among several resorts.



not sure what you mean.

priority booking is not shared among different resorts when you own multiple contracts.

if you own 200 SSR pts and 25 VGF pts and want to book VGF at 11 months out, you can only use pts from the VGF contract.

OTOH, it can be a benefit if you use one contract for trips to one resort and the other contract for the other resort...or if you hit one resort in one year and the other resort in the next year (using banking and borrowing and alternating contracts).


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## chriskre (Sep 28, 2015)

frank808 said:


> Commission costs on four 25 point contracts versus a 100 point contract will be the same.  It is a percentage of the sale price.
> One negative about having multiple small contracts is that you have to signs many, many times at closing.  That is one reason we have never done a contract less than 50 points.



Are you sure about that?
I thought it was a minimum commission on smaller contracts and not just a percentage since the price is so low.  I guess it depends on the real estate broker you hire.  

And you also have more estoppel letters and seller fees when you have a few smaller contracts.


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## chriskre (Sep 28, 2015)

chalee94 said:


> not sure what you mean.
> 
> priority booking is not shared among different resorts when you own multiple contracts.
> 
> ...



Yes, if you bank and borrow those smaller contracts you can have for example 50 points in Beach Club, 50 Points in SSR, 50 Points in AKV, etc.
Then you do a trip every 3 years to each resort for 150 points and have Priority booking every 3 years for each resort.


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## frank808 (Sep 29, 2015)

chriskre said:


> Are you sure about that?
> I thought it was a minimum commission on smaller contracts and not just a percentage since the price is so low.  I guess it depends on the real estate broker you hire.
> 
> And you also have more estoppel letters and seller fees when you have a few smaller contracts.



On s small contract of 25 points you would need $2 more per point to cover estoppel fee.  Brokers charge a sellers fee per contract they sell?  Sorry have not sold any dvc contracts. When i inquired about the process if i wanted to sell a contract many moons ago, broker did not mention any other costs to list.


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## chalee94 (Sep 29, 2015)

chriskre said:


> Yes, if you bank and borrow those smaller contracts you can have for example 50 points in Beach Club, 50 Points in SSR, 50 Points in AKV, etc.
> Then you do a trip every 3 years to each resort for 150 points and have Priority booking every 3 years for each resort.



That is possible. 

But how likely are you to need exactly 150 pts for reservations at 3 different resorts?  What about if you have to cancel a reservation? 

"Every third year" is too risky a strategy IMO.  Too likely to strand (and lose) pts.


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## icydog (Sep 29, 2015)

*I go back to 100 point contracts*

100 point contracts are just the right size.


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## Rocy317 (Oct 14, 2015)

No one says you have to buy your DVC in small point contracts. DVC will sell you a single contract of any size you want. 25 is just the minimum. Some people prefer the smaller contracts because it gives more flexibility in both resale and later inheritance if you plan to keep it that long.
The smaller contracts also give you the option for 11 month advantage at multiple resorts in a split-stay scenario. Some DVC members like splits, my husband and I love them. In terms of purchasing, as an example, we have discussed buying a small VGF contract that would give us enough points to stay 3 nights EOY. 
I don't see the purpose in having the exact number of points for any given reservation scenario because our vacation scenario is different every year. It doesn't matter if we have a few more points than we need for one year or another, we just keep banking forward until we have enough for an extra night or a higher point villa. If we don't have enough points one year for what we want to do, we borrow points and then cut back the next year.


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## Southerngirl528 (Oct 14, 2015)

The minimum new membership is generally 100 points w/DVC but although they don't like to really advertise it, they will sell a minimum of a 50 point membership. It is only current members that can add as little as 25 points as an add-on if you buy from DVC. Only via resale could you buy less than a 50 point initial membership.

In the beginning, DVC's minimum purchases was 230 points as I recall. We started with 240 in '93. I have added on multiple times and I did so strategically to be able to book what I wanted at the resort I wanted in the season I wanted. I added on enough Vero Beach points to be able to snag a Beach Cottage for a few nights midweek in summer. 

My understanding is that it does cost a bit more to close multiple contracts. I know for example some folks with want to start with 150 points but they have 3 kids, so they will have that 150 points set up in 3 separate 50 point contracts.

It is also correct that if you have only a small amount of points at multiple resorts, that home resort priority is only available at more than 7 months out (for DVC resort bookings) with the amount of points you have deeded to that particular resort. Sure you can bank/borrow but if you only have 25 points at one home resort the max you can gather to book a rez at more than 7 months in advance is 75 points. For me that is pretty limiting. Perhaps that will work for some but I always recommend that folks buy where they want to stay the most, and buy the amount of points they can both afford and will get them what they need to vacation. For me it would be really frustrating to own more than 2 home resorts unless each home resort had a good sized chunk of points to use. But that is me and I am blessed in that we bought very early and had to start with a good deal more points than many new members do today.


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## SOS8260456 (Oct 14, 2015)

One reason to break a larger contract up is for possible inheritance issues.   If I were buying 300 points, I might consider 3 contracts at 100 each because I have 3 children.  I can't see doing many small breakdowns.   But we started with a small 25 point resale contract just for the 100 annual pass discount for our family of 5.  At the time there was a waiting list for small contracts.   They rarely made it to the resellers website because they had a list of interested buyers already and there was no room for negotiation.   That said we just sold our stripped 110 point AKL contract the day we put it for sale at our asking price. So I think it depends on your needs.


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