Current year points on a "For Sale" contract?

[DVC Grandpa]

Who controls the points on contracts up for sale at a resale broker? If someone were to put a contract with current year points up for sale and the contract didn’t sell, could the “for sale” points be banked, transferred to another owner or used by the original owner?

 

[Granny]

Until the contract is sold, the original owner controls the points. I suppose they actually control them until Disney recognizes the change of ownership in their system.

Of course, if they advertise XXX number of points available and then use them for a reservation, that would be a no-no.

If someone were to put a contract with current year points up for sale and the contract didn’t sell, could the “for sale” points be banked, transferred to another owner or used by the original owner?

If the contract doesn't sell, the owner can do any of these things. It's just like putting a car or house up for sale. If it doesn't sell, the owner still owns and controls it.

 

[Deb & Bill]

But if they sell the contract before the start of the reservation, it would be cancelled. But any transfers or banking would be permanent.

 

[JimC]

That is why you often see delayed closing dates on the listings. We did this for a contract we sold in the Spring, but had a Fall closing (the day after our reservation ended).

 

[Dean]

Who controls the points on contracts up for sale at a resale broker? If someone were to put a contract with current year points up for sale and the contract didn’t sell, could the “for sale” points be banked, transferred to another owner or used by the original owner?

The broker needs to know what to expect in terms of points availability. Thus I believe most contracts will ask you to freeze the points at that level while trying to sell. If you have points you want/need to use or bank, etc, I'd just let them know so they can update their listings and expectations. As noted, DVC will cancel pending reservations but I believe they do this when they change it over, not upfront with ROFR.

 

[HockeyKat]

Note that if you put an offer in on a contract, you can make your offer conditional on the owner banking certain points.

For example, our resale contract (Sept UY) went to ROFR on 2/6. We requested that the owner bank all of the available '06 points because we knew we wouldn't close before the 6 month banking deadline, and weren't sure we would be able to plan a trip before they would expire at the end of August.