DVC Resale Terminology: A Guide for New DVC Buyers
If you’re new to Disney Vacation Club (DVC) or just starting to explore resale contracts, you might run into terms that sound confusing. Don’t worry—this guide breaks down the most common DVC terms so you can understand how ownership works and what to look for when shopping resale listings.
Home Resort
Your Home Resort is the resort you purchase into. For example, if you buy at Disney’s Saratoga Springs, that becomes your home resort. The biggest perk is booking priority: you can reserve at your home resort up to 11 months in advance, while other resorts open up at 7 months.
Point Allocation
Point allocation is the number of points you receive every year until your contract expires. How many you need depends on:
- Time of year you travel
- Size of your villa
- Length of stay
To plan, you can check DVC’s Point Charts or use the DVC Trip Calculator for quick estimates.
Use Year
A Use Year is the month when your annual points are added to your account. For example, a February Use Year means your points are valid from February 1 of this year through January 31 of the next year (365 days of the year).
Important: Use Year doesn’t affect when you can book—it only affects when your points are valid for travel.
Banking Points
Banking lets you move unused points from this year into the next year’s balance. Disney allows banking within the first 8 months of your Use Year.
Example: If you have a February Use Year, your banking deadline is September 30. Any unused points banked by then carry over for one more year. If you miss the deadline, they expire.
Borrowing Points
Borrowing pulls points from the next Use Year into the current one.
Example: You get 100 points every February. If you want to book a December trip that requires 200 points, you can borrow 100 from next year’s allotment. This means you’ll start next year with zero points since you’ve used them ahead of time. If you borrow points, you do not need to borrow all of them. You would only need to borrow the amount of points necessary to book your vacation plans.
Hold Points
If you cancel a reservation within 30 days of check-in, the points go into hold status. Hold points can only be used for bookings made within 60 days of arrival.
Reservation Points
These are points converted for use outside of DVC resorts—for example, the Disney Collection or hotel exchanges. Once converted, they can’t be used for DVC villas.
Transferring Points
Transfer points move from one membership to another—either between two members or between your own multiple memberships. They keep their original home resort and Use Year, and they can be banked or borrowed. Disney allows one transfer per membership year.
Terms You’ll See in Listings
International Seller
If a contract is marked “International Seller,” it means the owner lives outside the U.S.A. By law, a 15% FIRPTA tax is withheld from the seller’s proceeds, and the buyer must ensure the tax is sent to the IRS. The Title Company and FIRPTA agent will handle this securely, and there is no extra cost for U.S. buyers. The seller would pay for the FIRPTA Agent services.
Be aware that the FIRPTA tax is filed using the seller’s ITIN number and the buyer’s Social Security number. As a buyer, if you are uncomfortable with providing a Social Security number to the title company as part of the closing, we recommend purchasing from a domestic seller.
If you also live outside the U.S., you’ll need to apply for an ITIN (Individual Taxpayer Identification Number), which comes with a small additional fee.
No Annual Dues Until [Year]
This means the seller is covering the current year’s dues. You’ll still receive that year’s points, but your first bill for dues won’t come until the following year.
Cannot Close Until [Date]
The seller already has a reservation booked with points from the contract. Closing can’t happen until after that trip is complete.
Subsidized Dues
Some contracts (rare, at Vero Beach and Aulani) have subsidized dues, meaning the annual dues are lower than the standard rate. These contracts are relatively rare and sell quickly when available due to the added value or savings on the annual dues.
Seller Pays Closing Costs
Normally, buyers pay closing costs. If a listing says “Seller Pays Closing Costs,” the seller is covering those fees. Note: if you finance, any financing-related fees are still the buyer’s responsibility.
Learning the Language
Learning the language of DVC makes shopping for a resale contract much easier. Understanding these terms will help you compare listings with confidence and get the most out of your membership.
Written By:
For over 22 years, Yamilin has been a vital part of The Timeshare Store, Inc.® (DVCstore.com), where she serves as a trusted DVC Sales Specialist and Accounting Manager. Her deep knowledge and commitment have helped thousands of families confidently explore and enjoy the magic of Disney Vacation Club.