Deed Expiration - what happens?

...as a result of there being no need to fund reserve accounts. Yep.

Still curious to see if OKW-42 owners really get a break on dues toward the end. Hope that pans out.

They will need to prorate the dues near the end because they obviously wont be doing any refirbs. I can also see people not paying dues, what is there to lose ?
They've already given the members some concessions due to this issue, I agree, it should be interesting since the resort still will need to be kept up with the transition and the then current owners will be technically responsible. My guess is they'll try to time the last refurbishments with a soft refurb about 5-6 years before the transition and the next hard refurb just after the transition. That'd be the best case scenario for members with a reduction or reimbursement for capital reserves to those exiting. Worst should be a hard refurb about 4-5 years out with little or no reduction in capital reserves.
 
They will need to prorate the dues near the end because they obviously wont be doing any refirbs. I can also see people not paying dues, what is there to lose ?
Is that true? Is DVC expected to return to DVD a run-down ill-maintained building?
 
Is that true? Is DVC expected to return to DVD a run-down ill-maintained building?
They can't expect to have it return tip top on the backs of those exiting, I suspect a balance shading toward due for a major refurb is about the worst case scenario for exiting members. Doing a major refurb obviously for their benefit post RTU would be an automatic lawsuit they would lose.
 
They can't expect to have it return tip top on the backs of those exiting, I suspect a balance shading toward due for a major refurb is about the worst case scenario for exiting members. Doing a major refurb obviously for their benefit post RTU would be an automatic lawsuit they would lose.
I suppose. Here in our HOA we have a schedule - this gets replaced every X years; that gets replaced every Y years. I was expecting that DVC had that and would continue that schedule without regard to who owned the property at the time.
 


I suppose. Here in our HOA we have a schedule - this gets replaced every X years; that gets replaced every Y years. I was expecting that DVC had that and would continue that schedule without regard to who owned the property at the time.

They likely will and really if you considered the excessive amount of time that they had scheduled between refurbs during the first 20 years of the Club and have now reportedly reduced that it shouldn't be returned appearing any different for Disney than it was for owners 5 years ago or so - at worst. Remember that the land lease is up at that time which is why things expire so technically the resorts revert back to the land owner which is not DVD.

So DVD just can't collect money and do a refurb that leaves them with a shiny ready to go resort though. I really don't expect they would want to anyway. The WDW company will be planning what to do with them.
 
I suppose. Here in our HOA we have a schedule - this gets replaced every X years; that gets replaced every Y years. I was expecting that DVC had that and would continue that schedule without regard to who owned the property at the time.
A lot of timeshares have specific schedules, DVC never has or at least has. In recent years they've tended to do refurbs more consistently but if they have a schedule, they've never published it. The industry standard is that top resorts are on a 5/10 yr plan and OK to good on a 6-7/12-14 yr plan. Often timeshares and HOA's in general alter their plans based on certain specifics. I own with Marriott which has a 5/10 year plan. A few years ago they were in the mode or refurbishment Grande Ocean on HH in the off season doing 2 of 10 buildings per year. They did this for 2 yrs I believe then did the other 6 all at one time because the savings doing them at once was so great.

Still, that doesn't alter the reality that it would be inappropriate, and likely illegal, for them to do a major refurbishment last minute before expiration of a RTU.
 
The longer use period is one of the main reasons we went with Animal Kingdom.
In 2042, we are 70 and our son/family will be 45. I still expect to visit Disney at 70.
In 2054 we are 82, they are 57, and their kids will likely be in their 30s.

For a price similar to the 2042 contracts, we went with 12 extra years to cover us, our child, and our grandkids. What the grandkids want to do in 2054 will be all up to them.
 


The longer use period is one of the main reasons we went with Animal Kingdom.
In 2042, we are 70 and our son/family will be 45. I still expect to visit Disney at 70.
In 2054 we are 82, they are 57, and their kids will likely be in their 30s.

and tickets prices will be $1000 each to enter 1 park, BUT disney will let you pick the park
 
and tickets prices will be $1000 each to enter 1 park, BUT disney will let you pick the park
The longer use period is one of the main reasons we went with Animal Kingdom.
In 2042, we are 70 and our son/family will be 45. I still expect to visit Disney at 70.
In 2054 we are 82, they are 57, and their kids will likely be in their 30s.

For a price similar to the 2042 contracts, we went with 12 extra years to cover us, our child, and our grandkids. What the grandkids want to do in 2054 will be all up to them.

We thought the same way and did the same thing when we bought our 2nd DVC but found we didn’t really like the resort as much. But in high season when you needed 11 month booking window it was the only place we could get onto. So we sold it. More important to enjoy the resort
 
Thank goodness these threads exist. I'm looking into resale myself for my family and running numbers. Thank you everyone for your input.
 
It will be very interesting to see how the bean counters handle Capital Expenditures during the closing years.
Just because the lease to your car may up in a few months doesn't mean you get to drive it around with flat tires and no oil.
 
Just because the lease to your car may up in a few months doesn't mean you get to drive it around with flat tires and no oil.

That's a non sequitur, though.

The point is that if my lease ends at 30,000 miles, that I will not be the one to pay $1500 for the 30,000 mile maintenance service.

I will take "typical" care of the car but not pay for extra services that I might purchase if I would still be driving the car at 60,000 miles.

So the hardware may be coming loose or falling off a few of the cabinets in early 2042 but the units will still be serviceable. (That is how things are now at the end of a refurb schedule - look at SSR reviews from the last year or two.) But Disney will get sued if they attempt to charge owners in 2041 for brand new carpet and furnishings...retiling the bathrooms or updating the floors with new premium vinyl planks or such...
 
That's a non sequitur, though.

The point is that if my lease ends at 30,000 miles, that I will not be the one to pay $1500 for the 30,000 mile maintenance service.

I will take "typical" care of the car but not pay for extra services that I might purchase if I would still be driving the car at 60,000 miles.

So the hardware may be coming loose or falling off a few of the cabinets in early 2042 but the units will still be serviceable. (That is how things are now at the end of a refurb schedule - look at SSR reviews from the last year or two.) But Disney will get sued if they attempt to charge owners in 2041 for brand new carpet and furnishings...retiling the bathrooms or updating the floors with new premium vinyl planks or such...
But if DVC and Disney have plans to continue utilizing those hotels after the deeds expire, why would they let them get run down? They will have the capital reserves that they can (and should) use until 2042. If the capital reserves aren’t enough to cover refurbishments that need to be done, I would think Disney/DVC would cover the cost of those repairs/refurbishments knowing that those 2042 resorts will be “open for business” in 2043 (if that’s their plan). Now, if the plan is to tear down the resorts and rebuild then it is an entirely different story. But remember that these aren’t DVC only resorts; most are a smaller extension to the larger “cash” resort. So unless there are plans to tear down the entire resort in 2042, I would think Disney will want to keep all the DVC rooms in tip top shape.

Of course, my entire comment is speculation because no one knows what the plan is for the resorts when their DVC contracts expire.
 
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But if DVC and Disney have plans to continue utilizing those hotels after the deeds expire, why would they let them get run down? They will have the capital reserves that they can (and should) use until 2042. If the capital reserves aren’t enough to cover refurbishments that need to be done, I would think DVC would cover the cost of those repairs/refurbishments knowing that those 2042 resorts will be “open for business” in 2043 (if that’s their plan). Now, if the plan is to tear down the resorts and rebuild then it is an entirely different story. But remember that these aren’t DVC only resorts; most are a smaller extension to the larger “cash” resort. So unless there are plans to tear down the entire resort in 2042, I would think Disney will want to keep all the DVC rooms in tip top shape.

Of course, my entire comment is speculation because no one knows what the plan is for the resorts when their DVC contracts expire.

I think it will also depend on the schedule of hard goods vs soft goods. Soft goods should definitely stay on schedule so even in those last few years, things do not fall apart.

Hard goods is a different story. I think it’s every 14 years? So if it was done in 2035, it would not be normal to do again so close to expiration.

But I agree with Carol. They should be budgeting toward the end to know what needs to be done and adjust capital reserves to a level that close to zeros out in 2042 or whenever a resort ends.
 
As I own several non-2042 DVC resorts as well as some that due expire at that time, not going to worry about it, particularly as I will be 83 at the time.
 
Random question from newbie, will your last use year be an entire year and extend into 2042 or will Jan 31st, 2042 be the end date to utilize 2041 points? Maybe I missed this. For example, if you have an August use year, your August 2041 points could be used from when to when?
 
Random question from newbie, will your last use year be an entire year and extend into 2042 or will Jan 31st, 2042 be the end date to utilize 2041 points? Maybe I missed this. For example, if you have an August use year, your August 2041 points could be used from when to when?

Everything ends January 31st, 2042. I expect that they will limit banking and borrowing those last few years as well to help with all the points.

But Aug 2041 points will be valid from August 1st until January 31st of 2042
 
Everything ends January 31st, 2042. I expect that they will limit banking and borrowing those last few years as well to help with all the points.

But Aug 2041 points will be valid from August 1st until January 31st of 2042

That is about what I expected. Thanks for affirming it.
 
But if DVC and Disney have plans to continue utilizing those hotels after the deeds expire, why would they let them get run down? They will have the capital reserves that they can (and should) use until 2042. If the capital reserves aren’t enough to cover refurbishments that need to be done, I would think Disney/DVC would cover the cost of those repairs/refurbishments knowing that those 2042 resorts will be “open for business” in 2043 (if that’s their plan).

Right. Charging OKW-2042 owners or other 2042 resort owners for major refurbishments that late in the game would definitely create a legal issue. But Disney (DVD) can pay for it if they choose (and that seems to be part of what was promised in the link below to OKW-2042 owners).

(They can also charge OKW-2057 owners higher dues in the unique case of OKW, since they will have an expected benefit of usage from 2042 to 2057.)

My personal expectation for 2038-2042 is that Disney won't want to take rooms out of service for refurbishments due to the squeeze of all owners trying to use their pts before expiration. Unless they think they can presell a small resort like BCV quickly (and by law, I believe they would have to wait until a given period of time before BCV 2.0 was expected to officially open), I don't see them wanting to spend money on major refurbishments that benefit expiring BCV owners vs. new BCV 2.0 owners. Given that DVD is already on the hook for over half of OKW's capital reserves for the 6-8 years(?) leading up to 2042, will they have the green light to spend on other 2042 resorts also?

I don't know. We'll see.

https://www.disboards.com/threads/extensions-on-2042-contracts.3659537/page-4
Responding to a complaint relating to the extension of OKW to 2057, DVD has agreed to provide a developer subsidy to all members who elect to not participate in the extension. The Executive Counsel for WDW, John McGowan stated:

"....we agree that members who elect not to extend should not be required to fund capital repairs after 2042. However, Section 721.13(3)(c)(3), F.S., provides that full funding of reserves can only be waived by a majority of the members. Consequently, as part of the OKW Extension, DVD, as developer, has already agreed with the association to provide a developer subsidy at the appropriate time (the association is obviously not yet funding capital reserves for capital replacements after 2042) to all members who elect not to participate in the OKW Extension. The purpose of the developer subsidy is to pay a portion of such member's capital reserve assessments in an amount sufficient to fully fund capital reserves and to relieve all such members of the obligations to fund capital replacements after 2042. Thus, DVD has committed to the association that neither.....nor any other members who elect not to extend will pay any reserve assessments for capital improvements made after 2042.
 

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