Disney offering to buy back Aulani contracts

Written by Tim Krasniewski | November 01, 2011
Posted in Aulani Villas News

Disney Vacation Development is beginning to contact current Aulani owners regarding the adjustment to resort dues and its impact on owners. One of the options given is for DVD to buy back the contract, no questions asked.

The primary focus of the correspondence is to outline the annual dues credit for owners who purchased prior to July 27, 2011. As expected, the credit starts at $1.4243 per point in 2011 and will be adjusted in future years as resort dues increase.

The credit will even transfer to a new owner if the contract is sold anytime before the January 31, 2062 ending date, but will not apply to purchases made after July 27, including add-on points.

The other option presented is for Disney Vacation Development to refund all monies paid, effectively buying-back the points. DVCNews.com forum member RAMartin--an owner at Aulani--quoted the Disney correspondence as stating:

"We want everyone to be satisfied with their purchase. If you decide that the changes described in this letter and the enclosures are not acceptable to you, you may cancel your purchase by sending us written notice within 30 days of your receipt of this letter .... Upon receipt of your signed and notarized re-conveyance documents, we will refund all amounts you have paid to us, plus interest, (and, if applicable, cancel your mortgage and note) within 20 days."

The notice also sheds some light on property reorganizations made to help reduce current and future dues for all owners. Disney states:

"We have amended the project to move some of the land and facilities from the hotel portion to the vacation ownership portion. Because some of these facilities are within the project's Ali'i Nui Hotel Condominium Association, you will now also be a member of that association.

"This adjustment should have little or no financial impact on you because the cost of maintaining and operating these facilities will continue to be shared between the hotel and the vacation ownership portions of the resort on the same basis as they were before, and because the projected revenues associated with these facilities will now be credited to the vacation ownership portion."

The last portion of that statement suggests that Disney has elected to move profit-generating facilities into the resort timeshare component. Monies earned by these facilities will be credited to member dues, thus reducing the amount paid by all owners.

One issue not addressed is whether or not there will be any subsidy for Hawaii's Transient Occupancy Tax which is also calculated based upon a timeshare resort's annual dues.