What Fees Should You Expect to Pay When Purchasing a DVC Resale Contract?

Purchasing a Disney Vacation Club (DVC) resale contract can be an exciting and cost-effective way to become a DVC Member. However, many buyers don’t fully understand the out-of-pocket expenses involved in the process. While resale contracts often come at a lower price per point than buying directly from Disney, there are various fees that must be paid before your membership is finalized.

If you’re considering buying a resale contract, here’s a breakdown of the fees you should expect to pay out of pocket when purchasing a DVC resale contract.

1. Deposit – Paid at the Time of Offer

One of the first out-of-pocket expenses you will encounter when purchasing a resale contract is the deposit.

• The deposit is typically required by the broker once an offer is accepted.
• It is usually around 10% of the purchase price, depending on the contract size and broker policies.
• This amount is applied toward the final funds owed at closing but is paid upfront to secure the contract and confirm your intent to purchase.

Many buyers mistakenly think the deposit is the same as the down payment—it’s not. The deposit is simply an initial payment to hold the contract while the transaction moves through the Right of First Refusal (ROFR) process, contract verification, and closing preparation. The deposit comes back to the buyer at closing to become a credit towards the final amount due. The deposit can be forfeited if the buyer defaults on the contract agreement.

2. Down Payment – Paid at Closing

The down payment is another out-of-pocket cost that some buyers may need to cover. This applies if you are financing your DVC purchase rather than paying in full. The down payment is the part of the purchase price the loan does not cover. Similar to purchasing a home, where most mortgages require a down payment. The loan will cover a majority of the purchase price while the buyer covers a small portion of the purchase price known as the down payment.

• Financing companies typically require a down payment of 5%-20% depending on your lender and loan options chosen.
• This is separate from the deposit and is paid at closing when the loan is finalized.
• For example, if you purchase a $20,000 contract and finance $18,000, you might need to pay a $2,000 down payment to close on the sale.

Key Difference Between Deposit and Down Payment:

• The deposit is an initial payment to the broker to hold the contract. It is typically paid to your title company and held in escrow until closing.
• The down payment is what you pay towards the total purchase price at closing (if financing).

3. Closing Costs – Fees Associated with a real estate purchase

Closing costs cover the administrative and legal fees related to the transfer of ownership. These fees vary based on the title company handling the closing, the resort location, and contract size.

Here are some examples of closing costs you might see:

• Title and escrow fees – Paid to the title company handling the transaction.
• State taxes and recording fees – If applicable, these are paid for recording the sale with local government agencies.
• Wire transfer fees – Some buyers opt to wire their funds, which may come with a fee.
• Loan Fees: These are things like loan processing fees for your title company, mortgages taxes, etc. added when financing.

4. Annual Dues – Paying for the Year’s Points

When buying a resale contract, you’ll also need to factor in annual dues. This is a critical out-of-pocket expense that varies based on the contract. Disney requires dues to be paid at closing when a contract switches ownership.

There are few scenarios for how dues are handled:

1. If the seller has already paid the dues for the year, you may reimburse them for the remaining dues at closing or you may be paying Disney for those dues. Your title company will collect the dues as part of closing and pay out the appropriate party.
2. If the contract includes “free” points from the current year or your seller has used all the points from that year, you may not have to pay dues until the following year.
3. Sometimes the seller has used all the points from the year and the next year. When this happens, the seller usually provides the buyer a credit at closing for the extra points used.

How Much Should You Expect to Pay Upfront?

The total out-of-pocket costs you’ll need to cover when purchasing a DVC resale contract depend on the following factors:

Expense	Estimated Cost
Deposit	10% of purchase price (applied as a credit to the final total)
Down Payment (if financing)	5%-20% of the purchase price
Closing Costs	$800-$1,400 on average based on resort location and title company
Annual Dues	Varies by resort and contract size

Final Thoughts: Understanding Your True Costs

While purchasing a DVC resale contract can save thousands compared to buying direct from Disney, it’s essential to be prepared for the out-of-pocket costs involved. Many first-time buyers underestimate how much they need to pay upfront.

By understanding these four main fees—deposit, down payment, closing costs, and annual dues—you can budget accordingly and ensure you’re financially prepared for your DVC resale purchase.