I was a little unsure how DVC deeds and the legal description was stated so I had to look at one. They are really no differen than most weeks based timeshare except that the percentage of undivided interest is based on the number of points compared to the number of points for an entire unit where weeks based timeshare lists a unit and week number along with the undivided interest percentage.But, they wouldn’t be adding declared units from RIV into the trust…they would take all the undeclared units and make them a “new” element of RIV that isn’t being sold as a deeded ownership interest…the contracts say that DVD doesn’t have to add more rooms beyond the initial declaration.
Given this, they way I understand it, and if it works like other trust based timeshare systems (DVC isn't reinventing the wheel here). I believe they would still have to declare the units to the resort HOA but then they would convey the deeds for each unit to the trust instead of selling them to individual buyers. So you may see a deed that reads something like this;
An undivided 0.98% interest in Unit 12A of Disney's Riviera Resort....
....Purchasers Ownership Interest shall be symbolized as xxx Home Resort Vacation points.
xxx would be whatever the total number of points that DVC can sell for that unit.
They could theoretically put multiple units on a single deed or even an entire building of units. This would save them on recording costs associated with the trust conveyances. There would also be a trust document recorded (hopefully in Orange County FL) where they would declare the number of points being conveyed to the trust as well as the total number of points in the trust after that conveyance.
There is also theoretically nothing stopping them from conveying deeds that they get back for any resort to the trust. They just convey x.xx% of unit ## at whatever DVC resort they got back. If they think they need to convey entire units, this could cause issues at OKW when it expires as I am sure some units have owners with 2042 deeds and others with 2057 deeds. I doubt there are any entire units sitting with all 2042 deeds.
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