What is the current 2042 status on existing points?

[Aussie RJ]

What we know for certain is that DVC will not do another extension in the same way, really too messy. My guess is that they won't extend BCV and BWV (they'll be two gold mines with revised point charts and higher buy in cost), close/sell Vero and HHI and resell as a new resort BRV with a shorter expiration to match CCV and then resell both as a merged resort when they both expire.

I thought I read about something about Florida timeshare law requiring DVC to “rebuild” the units if they were to end the 2042 resorts and resell the points. Do you know anything about that?

 

[drusba]

I thought I read about something about Florida timeshare law requiring DVC to “rebuild” the units if they were to end the 2042 resorts and resell the points. Do you know anything about that?

There is no law requiring a "rebuild." Likely what you are referring to is Florida Statute §721.1255, which provides that a "timeshare plan" with an end date can be extended by a 66% vote of the owners. However, that statute has no real effect on DVC. The real property on which the DVC resorts sit is owned by the Disney parks company, not the association or the members. That property has been leased to DVD until 2042 and that lease cannot be extended absent the agreement of the Disney parks company. Absent its express agreement to extend the lease, all the land and buildings and improvements on it become the sole property of the Disney parks company when the lease expires in Jan 2042. Thus, that company's consent to extend the lease is needed to successfully extend the timeshare plan.

 

[Sandisw]

OKW used to expire in 2042 because the lease for the land expired in 2042 (like the other initial resorts). DVC decided to do the extension extending the lease, basically extending the contracts to everyone and then asking owners to sign the quit claim to renounce to the last 15 years of the lease.
Someone say that since the lease is extended and you haven't signed te quit claim, DVC cannot deny you to continue to use your membership. If you want to sell, they require to sign the quit claim, so you cannot resell it with the later expiration, but if you keep it they cannot force you to sign.
What will happen in 2042 is not certain, but this is the theory.
What we know for certain is that DVC will not do another extension in the same way, really too messy. My guess is that they won't extend BCV and BWV (they'll be two gold mines with revised point charts and higher buy in cost), close/sell Vero and HHI and resell as a new resort BRV with a shorter expiration to match CCV and then resell both as a merged resort when they both expire.

This is what I think will happen as well. I could see them giving current BWV and BCV owners an advanced chance to buy in with maybe a current owner incentive, but I don’t see it being inexpensive for any one to rebuy.

 

[_auroraborealis_]

The extension was poorly thought through, and since you cannot extend the buildings without extending the land lease, and if the land lease extends so does the building ownership... Extensions of existing contracts and existing points charts cannot occur.

And there is also the O14 restriction.

They can do all new contracts with new conditions and points charts, or even keep the same points charts under new contracts. But they cannot extend the land lease while the original contracts are in place. Any land lease would need to have inception on 2/1/42. At which time no one has a contract.

 

[anomamatt]

Someone say that since the lease is extended and you haven't signed te quit claim, DVC cannot deny you to continue to use your membership. If you want to sell, they require to sign the quit claim, so you cannot resell it with the later expiration, but if you keep it they cannot force you to sign.

I suppose someone will be willing to sue over it, which is what it will take. It'll be interesting. There is no way DVC will give in (and extend all remaining original 2042 deeds) without long, protracted lawsuit(s).

 

[zavandor]

I suppose someone will be willing to sue over it, which is what it will take. It'll be interesting. There is no way DVC will give in (and extend all remaining original 2042 deeds) without long, protracted lawsuit(s).

They know the numbers, if it's 100, 1000 or 10000 owners. A lawsuit is expensive and generates bad press. If they're not many, they may decide to quietly give in, maybe in exchange of a NDA. Or maybe give an option to pay the original $15pp to settle, which near the contract expiration would be a great deal.

 

[SL6827]

OKW used to expire in 2042 because the lease for the land expired in 2042 (like the other initial resorts). DVC decided to do the extension extending the lease, basically extending the contracts to everyone and then asking owners to sign the quit claim to renounce to the last 15 years of the lease.
Someone say that since the lease is extended and you haven't signed te quit claim, DVC cannot deny you to continue to use your membership. If you want to sell, they require to sign the quit claim, so you cannot resell it with the later expiration, but if you keep it they cannot force you to sign.
What will happen in 2042 is not certain, but this is the theory.
What we know for certain is that DVC will not do another extension in the same way, really too messy. My guess is that they won't extend BCV and BWV (they'll be two gold mines with revised point charts and higher buy in cost), close/sell Vero and HHI and resell as a new resort BRV with a shorter expiration to match CCV and then resell both as a merged resort when they both expire.

Wonder how many of those owners are out there that might actually get the 2057 for free? Boy that would be a slap in the face to those who actually paid for the extension, right?

 

[SL6827]

I suppose someone will be willing to sue over it, which is what it will take. It'll be interesting. There is no way DVC will give in (and extend all remaining original 2042 deeds) without long, protracted lawsuit(s).

This would be interesting.

 

[EYL]

That is correct 2041 will be the last points given to owners.

So this brings up a thought... What if you have a December UY? Then December 2041 are your last set of points to be used by January 31, 2042? I mean, Disney will have to grant those points if MF's are be paid, but those owners will have 2 months to use them? Disney *has* to be thinking about stuff like this when we all are...

 

[ehh]

So this brings up a thought... What if you have a December UY? Then December 2041 are your last set of points to be used by January 31, 2042? I mean, Disney will have to grant those points if MF's are be paid, but those owners will have 2 months to use them? Disney *has* to be thinking about stuff like this when we all are...

As a Dec UY owner (though not a 2042 owner), I plan to borrow the final year points into the year prior, as much as possible. Gives me 14 months instead of 2 to use them.

 

[crvetter]

So this brings up a thought... What if you have a December UY? Then December 2041 are your last set of points to be used by January 31, 2042? I mean, Disney will have to grant those points if MF's are be paid, but those owners will have 2 months to use them? Disney *has* to be thinking about stuff like this when we all are...

You could use them with borrowing currently. But all the points given out in the the 2041 UY (Feb to Dec UY) is exactly the points (in tolerance) required to book the resort from Feb 1 2041 to Jan 31 2042.

 

[Frederic Civish]

I suppose someone will be willing to sue over it, which is what it will take. It'll be interesting. There is no way DVC will give in (and extend all remaining original 2042 deeds) without long, protracted lawsuit(s).

Wonder how many of those owners are out there that might actually get the 2057 for free? Boy that would be a slap in the face to those who actually paid for the extension, right?

As I said before, no matter which way it goes, let the screaming begin.

The people who never signed the quit claim deed will probably have legal standing to continue to use the resort, and if Disney tries to shut them out, they definitely WILL take it to court. Meanwhile, if Disney just lets it pass, those who paid the extra fee to extend will complain and ask for their money back. And then, what type of grumbling are you going to hear from those who didn't extend and DID sign the quit claim deed. If the others get to extend, they will complain that Disney tricked them, or something.

What a mess Disney has created. And that is why they absolutely will not do it again.

 

[EYL]

As a Dec UY owner (though not a 2042 owner), I plan to borrow the final year points into the year prior, as much as possible. Gives me 14 months instead of 2 to use them.

All of the owners of late UYs will probably do the same as you, making 2041 a nightmare to book at the "2042 resorts" resulting in more than usual trade-outs. I wonder what mayhem this will create in 2041 for the 9 remaining legacy resorts with the resale restrictions...

 

[ziravan]

There is no law requiring a "rebuild." Likely what you are referring to is Florida Statute §721.1255, which provides that a "timeshare plan" with an end date can be extended by a 66% vote of the owners. However, that statute has no real effect on DVC. The real property on which the DVC resorts sit is owned by the Disney parks company, not the association or the members. That property has been leased to DVD until 2042 and that lease cannot be extended absent the agreement of the Disney parks company. Absent its express agreement to extend the lease, all the land and buildings and improvements on it become the sole property of the Disney parks company when the lease expires in Jan 2042. Thus, that company's consent to extend the lease is needed to successfully extend the timeshare plan.

That and as a DVC owner, you’ve formally ceded your voting rights to the DVC board. The 66% vote of owners would be a proxy vote by the Disney-controlled DVC board.

 

[Sandisw]

As a Dec UY owner (though not a 2042 owner), I plan to borrow the final year points into the year prior, as much as possible. Gives me 14 months instead of 2 to use them.

There is language that allows Disney to suspend banking and borrowing if there is a reason to do. I have a feeling we will see something to that affect in the last few years to ensure a balance of points and demand and use,

Borrowing points wont Give you 14 months to use them. It would just allow you to use them in the UY prior when making the reservation

 

[mustinjourney]

There is no law requiring a "rebuild." Likely what you are referring to is Florida Statute §721.1255, which provides that a "timeshare plan" with an end date can be extended by a 66% vote of the owners. However, that statute has no real effect on DVC. The real property on which the DVC resorts sit is owned by the Disney parks company, not the association or the members. That property has been leased to DVD until 2042 and that lease cannot be extended absent the agreement of the Disney parks company. Absent its express agreement to extend the lease, all the land and buildings and improvements on it become the sole property of the Disney parks company when the lease expires in Jan 2042. Thus, that company's consent to extend the lease is needed to successfully extend the timeshare plan.

I'm glad we don't have to pay your retainer. I don't want to know what your information would cost if we had to pay.

Hypothetically, of course

 

[mustinjourney]

They know the numbers, if it's 100, 1000 or 10000 owners. A lawsuit is expensive and generates bad press. If they're not many, they may decide to quietly give in, maybe in exchange of a NDA. Or maybe give an option to pay the original $15pp to settle, which near the contract expiration would be a great deal.

could be worth buying a resale contract just to see what happens...

 

[mustinjourney]

As I said before, no matter which way it goes, let the screaming begin.

The people who never signed the quit claim deed will probably have legal standing to continue to use the resort, and if Disney tries to shut them out, they definitely WILL take it to court. Meanwhile, if Disney just lets it pass, those who paid the extra fee to extend will complain and ask for their money back. And then, what type of grumbling are you going to hear from those who didn't extend and DID sign the quit claim deed. If the others get to extend, they will complain that Disney tricked them, or something.

What a mess Disney has created. And that is why they absolutely will not do it again.

I'm really curious if they will try and buy back as many resale via ROFR to limit their exposure over the next 20 years.

 

[mustinjourney]

There is language that allows Disney to suspend banking and borrowing if there is a reason to do. I have a feeling we will see something to that affect in the last few years to ensure a balance of points and demand and use,

Borrowing points wont Give you 14 months to use them. It would just allow you to use them in the UY prior when making the reservation

yeah -- I have 50 DEC points at BCV that I've already assumed will just get poofed. Won't be happy about it -- but that last year is definitely going to get wonky.

 

[zavandor]

could be worth buying a resale contract just to see what happens...

In order to sell, the current owner would have to sign the quit claim, so buying a resale contract you would get a deed without the extension.

I'm really curious if they will try and buy back as many resale via ROFR to limit their exposure over the next 20 years.

They would probably want to convert as many 2042 contracts as possible to 2057, in order to have fewer points back in 2042, which complicates the resort management. Currently only 20% of the contracts are extended.