Adding on-separate contracts?

[Horizon93]

I have been reading that there are advantages to having separate, smaller contracts instead of having one big contract. The advantages would include easier resale (not likely to ever sell), the ability to sell part of your interest if necessary, and the ability to leave separate contracts to children someday.

Not looking to do anything soon, but definitely will be adding on the next few years.

Assume that I will adding on through DVC.

Here are my questions:

If i add on at my home resort, is it better to add them to my existing contract, or to start a second.
Will the new contract have the same use year as my existing one?
If i buy at a second resort, I assume that wiull be a second contract. Is that correct?
Will that contratc have the same use year as my first contract?
Will I pay closing costs if I add a second contract?


Thanks!

[CarolMN]

I have been reading that there are advantages to having separate, smaller contracts instead of having one big contract. The advantages would include easier resale (not likely to ever sell), the ability to sell part of your interest if necessary, and the ability to leave separate contracts to children someday.

Not looking to do anything soon, but definitely will be adding on the next few years.

Assume that I will adding on through DVC.

Here are my questions:

If i add on at my home resort, is it better to add them to my existing contract, or to start a second.If you add on through Disney, the add on will be added to your original contract - with same use year. If you insist and buy at least 160 points, you can get a separate contract with same or different use year. Not sure why anyone would want to do that. If contracts are separate, you could not combine points from the two contracts to reserve a single night. In other words, if you had 5 points left in one contract and wanted to make a reservation for a night that cost 8 points, you couldn't use the 5 and then get 3 more from your other contract without doing a transfer. If you do the transfer, you use up the 1 per use year for both contracts. Also, if you do separate contracts, banking and borrowing percentages are calculated separately. That can work for or against you - probably against you most of the time. Bottom Line: Two separate contracts will require more effort on your part to track and maintain than will a master contract with add ons. FWIW, I also think 2 separate contracts will create more opportunity for MS (new CMs) to "make mistakes" - requiring extra diligence on your part.


Will the new contract have the same use year as my existing one?Yes, if you buy from Disney directly.



If i buy at a second resort, I assume that will be a second contract. Is that correct?
Will that contract have the same use year as my first contract? Even if you buy a different home resort , it will still be an add on contract to your original Master contract. The add on will have the same use year as your Master contract.



Will I pay closing costs if I add a second contract?


Thanks!I know Disney is now charging closing costs, but I don't know for sure if it charges existing members closing costs when they buy add on contracts. Maybe someone who has purchased an add on more recently will post.

[mprewitt]

Here are my questions:

If i add on at my home resort, is it better to add them to my existing contract, or to start a second.
Will the new contract have the same use year as my existing one?
If i buy at a second resort, I assume that wiull be a second contract. Is that correct?
Will that contratc have the same use year as my first contract?
Will I pay closing costs if I add a second contract?

My initial purchase was contract xxx.0. I have since added on 10 times at three other resorts. They are subcontracts xxx.1 through xxx.10 to my original contract. All have the same UY.

There are no closing costs for add-ons through Disney.

[KevGuy]

Is it easier to possibly sell a seperate contract as opposed to a add on to your master contract??

[mprewitt]

A "separate contract" means one in which you have a different membership number, and most probably a different Use Year. You get those by adding-on via the resale market. You can try to buy a resale with your same use year and have them linked.

If you add-on through Disney, the add-on will always be a subcontract, no matter what the resort is, will maintain the same membership number, and have the same Use Year.

You can sell seperate contracts and sub-contracts just as easily.

The smaller contracts (in terms of points) sell faster and obtain a higher price per point than larger contracts.

[FiggyFan]

I think it is important to make a clear distinction between a "membership" and a "contract".

Every time you buy points, the new points are covered by a new contract. Even if the new purchase is at the same resort and with the same use year, you sign a new set of paperwork, get a new deed, etc. Each contract can be bought and sold/resold independently.

When you make your initial purchase, you start a membership. Any time you buy additional points with the same use year, they are added to your existing membership. This is true even if the points are from different home resorts. My membership currently consists of four contracts, one for BWV points and three for BCV points. When I make reservations using BCV points, I don't have to worry about which of my 3 BCV contracts the points come from, or even if they come from several contracts. DVC keeps track of that, but it has no impact on how I make reservations.

If you make an additional purchase with a different use year, you start a new membership. You end up with 2 membership cards (different member ID numbers), 2 sets of banking and borrowing deadlines, and everything is separate.

Combining points from two memberships to make a reservation is harder - it involves having one membership "give" the points to the other through a transfer, and then making the reservation from one membership.

My recommendation - go ahead and buy multiple contracts, but try to keep them all in one membership.

[Horizon93]

Thanks for the detailed info! What this suggets to me is that if you add on, the best way to do it is directly from DVC and not from resale. If you are already a member, a resale contract, even with same use year, would be a separate membership, correct?

[FiggyFan]

I have never done a resale, but I would expect and hope that if the resale had the same use year, DVC would be able to make it part of your existing membership.

[mrsHerbie53]

I have never done a resale, but I would expect and hope that if the resale had the same use year, DVC would be able to make it part of your existing membership.

Does anyone know the answer to this?

[xipetotec]

I have been reading that there are advantages to having separate, smaller contracts instead of having one big contract. The advantages would include easier resale (not likely to ever sell), the ability to sell part of your interest if necessary, and the ability to leave separate contracts to children someday.

Not looking to do anything soon, but definitely will be adding on the next few years.

Assume that I will adding on through DVC.

Here are my questions:

If i add on at my home resort, is it better to add them to my existing contract, or to start a second.
Will the new contract have the same use year as my existing one?
If i buy at a second resort, I assume that wiull be a second contract. Is that correct?
Will that contratc have the same use year as my first contract?
Will I pay closing costs if I add a second contract?


Thanks!

I think it's always added as a second contract. My mother added on twice to her home resort. Once through DVC, and the other through a reseller, and in both cases, it came on as a second contract. The use-year will depend on the resale itself. The resale has a use-year on it. What I have experienced is that if you buy a resale that is the same use-year and home resort as what you have, it will be tacked onto your same MEMBERSHIP number ( but still a seperate contract number ). If you buy a resale in a different use-year or resort, then you will get two membership numbers. That's where it can get confusing. Also managing different use-years must be confusing, but other members here could probably tell you more about that.