DVC Contract Resale | Legal Services for Timeshare Transfers

The Ins and Outs of DVC Contract Resale

As a law blog writer, I have always been fascinated by the complexities of DVC contract resale. The dynamics of Disney Vacation Club (DVC) contracts and the legal considerations surrounding their resale make for an intriguing and ever-evolving area of law. In this blog post, I aim to provide a comprehensive overview of DVC contract resale, including its legal nuances, market trends, and potential pitfalls.

Understanding DVC Contracts

Before delving into the resale aspect, it`s important to have a basic understanding of what DVC contracts entail. DVC is a vacation ownership program that allows members to purchase a real estate interest in a Disney resort. The ownership is represented by points, which can be used to book accommodations at various Disney properties. DVC contracts come with a set number of points and a specified expiration date, typically ranging from 25 to 50 years.

The Legal Landscape

When it comes to DVC contract resale, there are several legal considerations to keep in mind. For instance, DVC contracts often include right of first refusal (ROFR) clauses, which allow Disney to purchase the contract back at the same price offered by a third-party buyer. This can impact the resale process and requires careful navigation to ensure a successful transaction.

Case Study: DVC Resale Restrictions

In recent case, Smith Disney Vacation Development, Inc., the court ruled in favor of Disney`s enforcement of resale restrictions in DVC contracts. This case serves as a reminder of the importance of understanding and adhering to the legal constraints outlined in DVC contracts.

Market Trends and Considerations

With the rising popularity of DVC ownership, the resale market has seen significant growth in recent years. According to statistics from the American Resort Development Association, DVC resales accounted for over $100 million in sales in 2020, representing a 15% increase from the previous year.

Year Total DVC Resale Sales
2019 $87 million
2020 $100 million

Potential Pitfalls

While DVC contract resale be endeavor, potential prospective should aware of. Include ROFR clauses, impact expiration on value, and compliance all requirements.

The world of DVC contract resale is a fascinating and multifaceted domain within the legal realm. By understanding the legal landscape, market trends, and potential pitfalls, sellers can navigate the resale process with confidence and success.

DVC Contract Resale Agreement

This DVC Contract Resale Agreement (the “Agreement”) is entered into as of the Effective Date by and between the parties identified below.

Party A Party B
Legal Name: ______________________ Legal Name: ______________________
Address: ______________________ Address: ______________________
Contact Number: ________________ Contact Number: ________________
Email: ________________________ Email: ________________________

Whereas Party A is the seller of a Disney Vacation Club (DVC) contract, and Party B is the buyer of the DVC contract, the parties agree to the following terms and conditions:

  1. Definitions
  2. For the purposes of this Agreement, the following terms shall have the meanings ascribed to them below:

    • “DVC Property” Mean vacation ownership property owned the Disney Vacation Development, Inc.
    • “ROFR” Mean Disney`s Right First Refusal, as in DVC resale process.
  3. Sale and Purchase
  4. Party A agrees to sell and Party B agrees to purchase the DVC contract for the agreed-upon price of $__________ (the “Purchase Price”).

  5. ROFR
  6. Party B acknowledges that the purchase of the DVC contract is subject to ROFR by Disney Vacation Development, Inc. Party A provide necessary and to the ROFR process.

  7. Transfer Ownership
  8. Upon successful completion of the ROFR process, Party A shall transfer ownership of the DVC contract to Party B, and Party B shall assume all rights and obligations associated with the DVC Property.

  9. Indemnification
  10. Both agree indemnify hold the party from claims out the sale purchase the DVC contract.

  11. Governing Law
  12. This Agreement be by construed accordance the of the State Florida.

  13. Amendments
  14. This Agreement may only be amended in writing and signed by both parties.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

Party A Party B
Signature: ________________________ Signature: ________________________
Date: ____________________________ Date: ____________________________

Top 10 Legal Questions About DVC Contract Resale

Question Answer
1. What is DVC contract resale? Let me tell you about DVC contract resale. It`s a process where an existing member of the Disney Vacation Club sells their ownership interest in a Disney timeshare to a third party.
2. Are there any legal restrictions on DVC contract resale? Yes, legal on DVC contract resale. The original DVC contract may contain specific provisions regarding the resale of the ownership interest. Additionally, there may be restrictions imposed by Disney Vacation Club or any applicable state laws.
3. What are the potential risks of DVC contract resale? When DVC contract it`s to aware risks. May financial, fees, on and It`s to review terms the and legal if necessary.
4. How can I ensure the legality of a DVC contract resale? Ensuring legality a DVC contract involves examination the and outlined the It`s to with attorney who review contract provide on legal implications.
5. What the legal when in DVC contract resale? Key considerations DVC contract include the process, with obligations, to state federal It`s to the with implications.
6. Can transfer DVC to member resale? Transferring DVC to member may but essential review terms the and legal to compliance all requirements potential implications.
7. What are the potential tax implications of DVC contract resale? When DVC contract it`s to potential implications. May include gains, taxes, tax It`s to with professional understand financial implications.
8. Can cancel DVC contract after? Once DVC contract is it be to the It`s to review terms before and legal if any or uncertainties.
9. What legal protections do I have as a buyer in a DVC contract resale? As buyer a DVC contract you legal that by terms the as well and laws. It`s to the and legal understand rights obligations a buyer.
10. How I the complexities DVC contract resale? Navigating complexities DVC contract requires consideration the and adherence legal and seeking from professionals specialize estate and resale.

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