The closing process when buying DVC is often considered the most complicated part of the whole deal, but the truth is that it doesn’t have to be. With the proper information and some guidance, understanding the closing process will become a breeze.
In this blog post, we’ll help you understand what to expect so you can better prepare for a smooth and efficient transaction.
Step 1: Finding the Right DVC Package
Once you have found the right Disney Vacation Club package to meet your family’s needs, you can either purchase the listing at the asking price (to secure the property) or present an offer and see if the seller is negotiable. The seller will either accept, counter, or stay firm on their price. Once the buyer and seller have agreed to terms, we will mark the package “Sale Pending” and will send over the purchase documents via email.
Step 2: Review and sign contracts
Our office will draw up a contract and these documents will include the details and terms of the agreement (such as the purchase price, deed information, financing information *if applicable, DVC points status, annual dues information, and other terms of sale).
Copies of the contract will then be sent to you (the buyer) and the seller. Read through the contract carefully and take your time. It’s important to be sure that all details stated in the contract are accurate.
If you’re satisfied with the contract, go ahead and sign your copy. In this stage, you don’t need any witnesses or notaries. All you need to do is sign the contract and send it back to our office either by fax or email (scanned copies). Your deposit (10% of purchase price) can either be put on a credit card (max. $2000) or by personal check. If sending a check, you would need to mail it to the provided address on the agreement.
The closing process requires an escrow officer / title company. We use First American Title Company to serve as the escrow officer for the transaction. First American Title will hold escrow (your deposit) during the closing and provide guaranteed free and clear title with title insurance on the purchase.
Step 3: Disney’s Right of First Refusal
After the signed contracts are received from you and your seller, we will send the documents to Disney and these will be subject to review under Disney’s Right of First Refusal. The process can take up to 30 days.
Disney has the power of Right of First Refusal (ROFR). This allows Disney to buy the DVC property in question instead of letting you buy it. If Disney chooses to do this during the closing process, your deposit will be refunded 100%. The downside to Disney stepping in and buying the package back, is that you’ll have to start from scratch and find another DVC package. Sellers, on the other hand, won’t be affected, as they will still be paid the same under the terms of the contract.
Whether Disney chooses to exercise or waive its ROFR, we will inform you of the outcome. If the property is bought back by DVC, the buying process for this particular DVC property ends. If Disney waives its right, it’s time to proceed to the next step.
Step 4: Closing Documents
The title company will be informed of Disney’s decision. Depending on the outcome, the title company will then write the appropriate closing documents. The time it takes for Disney and the title company to exchange the necessary information to create these final documents is anywhere from 14 to 30 days after ROFR.
Once the closing documents are ready, the title company will send copies to you and the seller. This will include instructions on how to proceed with the closing package.
Step 5: Finalize the sale
Once you’ve received your copy of the closing documents, read the attached instructions carefully. Some of these documents are required to be signed and returned to the title company, or signed, notarized, and returned. Go over the instructions to identify, which is which and avoid any confusion. If you need assistance, please do not hesitate to call or email your sales agent or the title company.
Once you’re done with the documents, include the rest of your payment via Certified Check (no credit cards) with the signed documents and mail back to the title company. Then you’re done!
Step 6: Title Company closes package
Once the title company receives your and the seller’s final documents they will schedule your closing. Upon closing, the title company will email you the good news that everything has been completed and recorded. The title company will submit the documents to Disney to complete the transfer of ownership.
Step 7: Start booking your DVC Vacations.
You’re in the final step. When Disney receives the new Membership information, they will create your new DVC Member Account. It usually takes Disney 2 to 3 weeks after closing to create the account and once completed, Disney will mail you a letter with your new membership number. When you receive this letter….you are all set to call Disney and start booking / planning your first DVC vacation. Be sure to ask Disney Member Services for you login and password to the www.DVCMember.com website. The Member website is an amazing tool for booking and using your DVC Membership.
Buying DVC is easy when you’re doing it with an expert. The Timeshare Store, Inc.® can help you. To learn more about DVC ownership, its long-term benefits, and other related information, get in touch with us today.