DVC Closing Costs and Fees Breakdown
Understanding the complete financial picture of Disney Vacation Club resale purchases requires knowledge of all closing costs and fees beyond just the purchase price. While buying DVC resale saves substantial money compared to buying direct from Disney, there are transaction costs that buyers should factor into their total investment. Let's break down every fee you'll encounter when purchasing a DVC resale contract.
Title Company Fees
Title companies handle the legal transfer of DVC ownership and typically charge $400-650 in closing fees depending on contract size and state requirements. This covers title search, document preparation, recording fees, and transfer administration. The title company ensures clear title, handles escrow, and manages all paperwork required for the ownership transfer to complete properly.
Most DVC resale brokers work with specific title companies experienced in Disney timeshare transactions. These specialized companies understand Florida timeshare law and DVC-specific requirements, streamlining the process compared to general real estate title companies unfamiliar with vacation ownership transfers.
Right of First Refusal (ROFR) Processing
All DVC resale contracts must be submitted to Disney for Right of First Refusal review, giving Disney the option to purchase the contract at your agreed price. While there's no separate ROFR fee, this process adds 30-45 days to your closing timeline. Buyers cannot complete the purchase until Disney either waives ROFR or exercises their right to buy the contract themselves.
Recent ROFR trends show Disney buying back contracts priced significantly below market averages, particularly for popular resorts like Beach Club, BoardWalk, and Grand Floridian. Understanding current ROFR pricing helps buyers make competitive offers likely to pass Disney's review rather than being purchased by Disney and returning to inventory.
Transfer Fees and Administrative Costs
Disney charges a mandatory transfer fee (currently $350 as of 2025) to process the membership transfer from seller to buyer. This fee covers administrative costs of updating DVC records, issuing new membership materials, and establishing your account in Disney's reservation system. The transfer fee is paid at closing and is non-negotiable regardless of contract size.
Some brokers charge additional transaction or broker fees ranging from $0-500 depending on their business model. Larger brokerages often include these costs in their overall service, while smaller brokers may itemize them separately. Always confirm total fees upfront when working with a resale broker to avoid surprise charges at closing.
Prorated Dues
Annual dues are prorated between buyer and seller based on the closing date. If closing occurs mid-year after the seller has paid full annual dues, buyers reimburse the seller for the remaining months. For example, closing on July 1st means the buyer owes the seller roughly half the annual dues since the seller prepaid for the full year.
Dues proration is calculated based on the exact closing date and appears as a credit to the seller on the closing statement. This isn't technically a "fee" but is a closing cost buyers should budget for when planning their DVC purchase, particularly on larger contracts where annual dues can be substantial.
Property Taxes
Like annual dues, property taxes are prorated between buyer and seller based on closing date. DVC property taxes typically run $1-2 per point annually depending on the resort. The title company calculates the exact proration and includes it in closing statement calculations, ensuring both parties pay their fair share for the year.
Financing Costs (If Applicable)
Buyers financing their DVC purchase will incur additional costs including loan origination fees (typically 1-2% of loan amount), appraisal fees, and potentially higher interest rates than traditional mortgages since timeshare financing is considered higher risk by lenders. Interest rates for DVC financing often range from 8-12% or higher depending on creditworthiness and lender terms.
Some buyers opt for personal loans or home equity financing instead of specialized timeshare loans, potentially securing better interest rates through their existing banking relationships. Each financing option carries different costs and terms that should be carefully evaluated against paying cash if that's financially feasible.
Total Cost Example
For a typical 150-point BoardWalk contract at $115 per point ($17,250 purchase price), expect total closing costs around $1,500-2,000 including title fees, transfer fee, and various administrative costs. Add prorated dues (perhaps $600-700 if closing mid-year) bringing total out-of-pocket to approximately $19,500. This real number helps buyers budget accurately rather than focusing only on purchase price.
Minimizing Closing Costs
While some fees are fixed (Disney transfer fee, property taxes), buyers can minimize costs by shopping title companies if your broker allows choice, avoiding brokers with excessive transaction fees, and timing closings to minimize dues proration. Paying cash eliminates all financing costs, though this isn't feasible for every buyer. The key is understanding all costs upfront to make informed decisions and avoid surprises at closing.