Purchasing contract with banked pts expiring in Nov?

[hjlawton]

We just had our first DVC contract sent for ROFR this week. It was a loaded contract DEC UY with 2013 points banked. We made our offer realizing that unfortunately we may not have access to these points given the long length of the closing process.

My question is, if we would have our member acct number sometime in November and there was some availability, even if I had to piece together multiple resorts, could I book extremely last minute using the reservation system? Also do you think that HHI might be a better possibility for availability last minute?

Thank you to everyone on these boards. Your posts helped us immensely in investigating DVC and in hopefully becoming owners soon!

 

[jscottnc]

I would investigate having the seller make a reservation for you now. Hmm, probably cannot be done since your offer includes the banked points. With the wind at your back, you MIGHT score a villa at SSR, OKW or AKL the week BEFORE Thanksgiving.

 

[kydisneyfans]

We closed Oct 10, 2013 with banked points that expired Nov 30. I made a reservation for a studio at OKW for Thurs-Sat night over Thanksgiving (SSR was open too) , put it on EBay, and sold it within 30 minutes.

 

[cvjw]

I would investigate having the seller make a reservation for you now. Hmm, probably cannot be done since your offer includes the banked points.

Disney cancels all vacations made on a contract before it is transferred to the new buyer. This plan would not work.

OP, you just never know when you will get your points, and if anything will be available before they expire. With the new resort availability tool, it is much easier to book last minute stays. You no longer have to bother member services to see if anything is available, you just log into your DVC member account and look to see if anything has opened up. I have successfully booked last minute stays this way

 

[ColinBlair]

With the long lead times these resales have been having, I wonder why the brokers haven't started offering rent-to-own deals. Pay an extra large deposit to cover the worth of the current years points, and get a reservation before closing.

 

[supersnoop]

With the long lead times these resales have been having, I wonder why the brokers haven't started offering rent-to-own deals. Pay an extra large deposit to cover the worth of the current years points, and get a reservation before closing.

Because ROFR.

 

[skier_pete]

Seems you'll get your points around the end of October. If you look at my "booking patterns" thread - linked HERE, you MIGHT be able to get a 1-bedroom at SSR for a few nights.

Don't know exactly how RCI works - maybe someone else could answer - but could the OP transfer their points into RCI and get an additional period of time to use them?

 

[ColinBlair]

Because ROFR.

I don't understand what ROFR has to do with this. It is common for a closing to be delayed until an existing reservation is completed. What is the difference if it is the buyer using that reservation?

My deposit was $2,560 and there were 123 points from 2013. So, what if they had increased the deposit to $4000 to cover the rental value of the 123 points and created a reservation for me? If I pulled out of the sale after using the reservation then the buyer still gets the rental value of the points back. The worst that could happen is that the buyer gets a free trip if Disney decided to take the contract.

 

[supersnoop]

I don't understand what ROFR has to do with this. It is common for a closing to be delayed until an existing reservation is completed. What is the difference if it is the buyer using that reservation?

My deposit was $2,560 and there were 123 points from 2013. So, what if they had increased the deposit to $4000 to cover the rental value of the 123 points and created a reservation for me? If I pulled out of the sale after using the reservation then the buyer still gets the rental value of the points back. The worst that could happen is that the buyer gets a free trip if Disney decided to take the contract.

If it were two separate transactions, a rental and a purchase, that'd be fine. But I don't see any benefit to the seller in that scenario.

A "rent-to-own" transaction implies that some portion of the purchase price is being used for the rental, or some portion of the rental is being applied to the purchase. Therefore, the contract submitted to Disney would need to include those same terms, and Disney could exercise ROFR on the deal. What happens if they do? Do you get a free trip? Or is your reservation cancelled? Or do you get to pay Disney for that reservation?

Basically, ROFR complicates this type of deal structure to the point that it's not in anyone's best interest.