Buying and selling Disney Vacation Club resale can be confusing, and the DVC resale closing process is probably the most complicated part of the entire ordeal. The good news is that between the real estate broker, title company, and Disney, most of the work is handled for you. With that in mind, it's still important to have a firm understanding of the DVC resale closing process, the parties involved, and what is required of you to ensure that the transaction is completed smoothly and efficiently.
Step One: Buyer Selects a Title Company
At this point in the process there is a DVC point package listed for sale, a verbal or written offer, and a verbal or written acceptance of the offer facilitated by a reputable real estate agent. In order to move the DVC resale transaction forward, the buyer will need to select a title insurance company to serve as the escrow officer. The licensed real estate agent you're working with can help you choose the title company that fits your needs.
Step Two: Sign Contracts
Now it's time to make things official. Over the course of a couple days, a licensed real estate broker will draw up a contract that reflects the terms of the offer and send copies of this contract to both the buyer and seller. The contract will include the purchase price, terms of the sale, DVC points status, and deed information. Look over all of these details carefully to ensure it accurately reflects the terms that you agreed to.
Once you have the contract, it is time to sign. There is no need to pass copies of the contract back and forth; each individual involved in the transaction can sign their own copy of the contract and send it back to the real estate broker. No witnesses are notaries are necessary during this step; they will come later on the closing documents.
If you are buying the DVC resale property, your deposit is due to the real estate broker at this time, along with the signed contract.
Step Three: Right of First Refusal
The real estate broker will take the signed contracts and send them to Disney for review. Disney's review process takes about 30 days (sometimes less), and will determine whether or not Disney will exercise Right of First Refusal.
Right of First Refusal (ROFR) is Disney's option to buy the Disney Vacation Club property in question rather than allowing the DVC resale transaction to be executed. If you are selling the DVC property there is nothing to worry about; Disney will pay you the price agreed upon in the contract. For a buyer, Right of First Refusal can mean losing the sale and starting over from scratch. If this happens, your deposit will be automatically refunded and you can put it towards your next offer. Make sure you read about how to prevent Disney from exercising Right of First Refusal before making your next offer.
The real estate company that you are working with will notify you whether Disney has chosen to exercise or waive its Right of First Refusal. If it's waived, you're well on your way to completing the DVC resale closing process!
Step Four: Estoppels and Closing Documents
Disney will notify the title company of its decision regarding Right of First Refusal and the title company will write closing documents accordingly. This can take anywhere from a few days to a couple of weeks as the title company and Disney exchange information and documents. When everything is in order, the title company will send independent closing documents to both the buyer and seller. The closing documents will include explicit instructions on how to proceed in the final step of the DVC resale closing process.
Step Five: Finalize the Transaction
It's the big finish, the last shebang! Some documents will need to be signed and returned, others should be signed, notarized and returned. The buyer will need to submit payment along with the signed documents, but once that is complete, you've completed a successful DVC resale transaction!
Have you been through this process before? Share your experience in the comments section below!
For more information about Disney Vacation Club membership, download our Family Guide to Disney Vacation Club and learn how to maximize the value of DVC membership.
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