Sharing a Contract

[raunq12]

Hi everyone! I’m new to the boards and this is my first time posting. I had a quick question about DVC. Are you allowed to split a contract with another family? Thank you! I look forward to your responses.

 

[starry_solo]

You can have multiple names on a contract, but the question that would happen is, how do you prevent each other from cancelling each other's vacations, using each other's points, etc....

 

[raunq12]

Hello! Thanks for the reply! This is mainly a question for research but you bring up a very good point! I would like to think that my friend who I discussed this with wouldn’t do anything like that; it’s mainly so our families can vacation together since we’re very close and we’re pretty much family; but I can see how this can be an issue with some who decide to go this route. Thanks again!!

 

[momto3pirates]

Also, because it is a real estate transaction it could be an issue in cases of divorce or bankruptcy.

 

[raunq12]

Oh that’s another fairly good point. Thanks for bringing that up!

 

[Marionnette]

Hello! Thanks for the reply! This is mainly a question for research but you bring up a very good point! I would like to think that my friend who I discussed this with wouldn’t do anything like that; it’s mainly so our families can vacation together since we’re very close and we’re pretty much family; but I can see how this can be an issue with some who decide to go this route. Thanks again!!

Why don’t you each buy your own contracts? Each purchases half of the number of points needed for the villa you want to book each year. Each handles their own financing and annual dues. When it’s time to book your vacations, you can transfer the points from one family to the other to make the reservation. Or you can agree that Family A borrows to book this year’s trip and Family B banks their points to book next year’s.

 

[rg35]

I would never do this. There are FAR too many opportunities for things to go south down the road.
Each family should just buy their own DVC membership.

 

[DaveNan]

If you each had a smaller contract, you would have at least 2 "booking options".
One family could transfer the points to the other at time of booking. 2 subtle disadvantages here are: reservations with transferred points have to be made with MS so you would not be able to book until 9AM vs 8AM (it really can matter at popular resort/season/room type) and transferred points do have some additional borrowing/banking restrictions so you need to understand the specifics and plan accordingly.
Second, each family could book separate reservations for 1/2 of the stay each time. If both reservations were made with the same primary guest, MS can combine them into one, so a room change would not be needed. If you didn't mind split stays, and you wanted 2 home resorts, this could give you 2 home resort booking advantages.

 

[kniquy]

I would like to think that my friend who I discussed this with wouldn’t do anything like that; it’s mainly so our families can vacation together since we’re very close and we’re pretty much family; but I can see how this can be an issue with some who decide to go this route. Thanks again!!

I think there are so many scenarios where this could go wrong - one family has a job loss and can not afford the maintenance fees. One goes through a divorce and the DVC contract is an asset that has to be part of the divorce. Even sharing a contract with family is not a good situation because of just the two situations I mentioned. Plus each of your families vacation habits could change, what works now may not in 5 years as kids become involved in different activities and then vacation times have to change,

If you are both very interested in vacationing together then each of you could buy a contract at the same resort. You could use those contracts to each book your own rooms or if you want a larger room to share this is where you could go ahead and combine points by doing a points transfer and one person could book a larger room.

Many people buy into DVC but then down the road realize it doesn't work for them anymore and then they want to sell. If you each have your own contract then neither one of you is locked into something that you many not want. You are each free to get out without affecting the other party.

 

[raunq12]

Very good point! Thanks for the advice!

 

[raunq12]

Oh that’s a great idea! I never thought of that!

 

[raunq12]

That’s a great idea! Thanks for the advice!

 

[motherof5]

Hi everyone! I’m new to the boards and this is my first time posting. I had a quick question about DVC. Are you allowed to split a contract with another family? Thank you! I look forward to your responses.

Make sure it's with someone you want a long term investment with and trust.

 

[PurpleJesus]

Don't do it. Unless you're buying an investment property with solid positive cash flow (in other words, no problems), and it's a long term legal partnership (LLC, etc...), that's not a relationship you want to get into with your friend. What if ish hits the fan and you need to sell your stake ASAP? You're S.O.L if your friend isn't also willing to sign off and sell the contract. He may say he would do it if the "worst case scenario" happened, but that's not in writing, and things change.

If you both want in, and want X number of points, just buy 2 separate contracts that add up to X points, and plan your trips together.

Trust me, real estate (commercial) is what I do for a living, and have for a few decades now. Those sorts of "friends buying a vacation home together" have a massive fail rate in terms of the friendship ending over something trivial in the long run, but it feels massive in the interim. $$$$ colors everything.

What a Debbie Downer I am in this post.....jeez. I'm depressed now. Lol.

 

[gharter]

i wouldn't. If the friendship falls apart, divorce, etc happen, it becomes a huge mess.
Better to get a smaller contract by yourself than a larger group contract. Including family members.