Effective DVC Point Rental Agreements

[Granny]

As suggested by Doc, I'd like to start a thread where people can share their ideas on what they have used as a point rental agreement, or what people think would be important to include in a rental agreement.

It would be good to hear suggestions from both those who own the points and those who have rented points. After all, it's no good to construct a one-sided agreement when both sides have some risk.

So, does anyone have a "standard DVC rental contract" they'd like to share? Or at least some ideas on specific clauses or requirements they'd want to include.

I don't think we would want it to become a 10 page document requiring a bank of lawyers to interpret...but what are the basic "protections" and terms you think are appropriate?

​

 

[vascubaguy]

Here's a sample version that brunoflipper posted in an older thread. The thread is HERE

"Vacation Points Usage Contract
NAME (DVC member) certifies that he has and will maintain, in good standing, an ownership interest in the Disney Vacation Club, throughout this contract period, sufficient to carry out the terms of this contract. DVC member desires to make this reservation in the tenant's name and benefit in exchange for payment.
NAME (tenant) certifies desire to purchase (rent) this reservation and has the ability to make full payment.
This contract is entered into, in good faith, between DVC member and tenant for the express purpose of renting reserved lodging as set forth below.

Names in Tenant's Party:
NAMES

Unit Description and Location: (Example)
2 Bedroom Preferred View at Boardwalk Villas, Walt Disney World, Florida.
Room requests made to DVC Member Services:
Non-smoking, Epcot View. DVC member makes no guarantee with regards to availability of room requests.

Duration and Dates: (Example)
11 nights- Arrival: January 9, 2005; Departure through January 20, 2005.

Calculations: (Example)
390 points at $10 /point, for a total payment of $3,900.

Payments / Deposits: (Example)
50% of the payment ($1,950) is due when tenant receives Disney confirmation letter.
Full Balance ($1,950) is due by October 9, 2005 via www.paypal.com, money order, cashier's check or personal check. . DVC member cannot accept credit card payment via www.paypal.com. Any form of payment returned for “insufficient funds” may initiate automatic cancellation of tenant’s reservations and full retention, by DVC member, of any partial payments received up to that date.
If payment is made by personal check, check must be received by October 2, 2005.


Cancellation and Refunds:
Tenant will be held to the same terms as a DVC member (i.e. cancellation on the day of arrival will forfeit the rented points and reservation to Disney... cancellation within the last 30 days will put the points into a holding account where the tenant will have 60 days to attempt to reschedule the reservation or forfeit the points to Disney... cancellation at 31 days or greater from the reservation's original date of arrival, allows the tenant to attempt to reschedule the reservation, pending room availability, with the points, anytime prior to their expiration on Feb. 28th , 2005. Upon signing the rental agreement, the rented points (390) become the tenant’s until they expire the following February 28th, 2005.

Tenant may request, and DVC member will attempt to make any reservation changes as directed by the tenant, within the limitations noted above. Tenant should be aware that this might not be possible because of limited room availability.

DVC member will not make any changes to the reservation without first being directed to do so by the tenant.

Funds received for the purpose of renting the DVC points are non-refundable (this includes partial payments). No attempt will be made by the DVC member to "re-rent" the points to a third party.

Force Majeure:
In the case of a catastrophic event beyond the control of the Disney Vacation Club to fulfill the essentials of this contract, to provide the specified lodging during the specified times, both parties agree to equally share the loss of non-recoverable points.

Tenant acknowledges receipt of confirmed reservations in tenant's name. _______(Tenant’s initials)
Tenant is responsible for all charges to the room associated with this stay. _______(Tenant’s initials)

Tenant agrees to follow the DVC rules and accepts responsibility and liability for the use of DVC property, including no pets. Tenant agrees to indemnify and hold harmless DVC member due to any actions taken by tenant, tenant's named party and/or tenant's guests during the execution of this reservation. ________(Tenant’s initials)

Tenant and DVC Member hereby agree to the terms of this contract.

DVC Member
NAME AND ADDRESS

Tenant
NAME AND ADDRESS

signed:_____________________________________ signed:_________________________________
date:_______________________________________ date:___________________________________"

 

[RobDoc]

Brunoflipper's looks like it would do the job. Here is another that could be used:

I, “DVC Member”, agree to provide a reservation for “Renter” at Disney’s “XXX” Resort in a “X”BR villa to arrive on X/X/2004 and depart on X/X/2004.

This reservation will be rented at the rate of “$XXXX” for the dates of this reservation. A deposit of “$XXX” will be due within “X” days of the receipt of a printed confirmation from Disney (or copy) in the name of “Renter”. This deposit will become non-refundable “XX” days after receipt, but will be returned if the reservation is cancelled in writing within that period of “XX” days. The balance of the payment will be due no later than X/X/2004 (“XX” days before the arrival date). Any requests regarding room location, view or amenities cannot be guaranteed, but will be made for “Renter” by “DVC Member” at the time of making the reservation.

In the event that, after the refund period has passed, “Renter” is unable to use the reservation made “Renter” agrees that no monies will be refunded, but “DVC Member” agrees to assist “Renter” in making changes to the existing reservation. Changes can include making the reservation in the name of another “Renter” (only at the direction of the original “Renter”), changing the date, resort, or room type – all based on availability and all limitations of the DVC program itself. In all cases, “Renter” understands that “DVC Member” will not refund either deposit or full payment after the refund period has passed. “Renter” agrees that (s)he will be subject to all policies of DVC regarding any desired changes to the reservation.

“Renter” agrees to abide by all rules of the resort involving use of the facilities and to abide by all rules of the Disney Vacation Club (DVC).

“Renter” will be able to confirm the reservation by calling the “XXX” Resort with the reservation number indicated on the confirmation letter. Contact phone numbers and resort address information will be found on the confirmation letter.

 

[fatherAZ]

I know when you rent for a nonmember you put the reservation in their name. When they check in, do they leave their credit card on file to pay for incidentals or are those your responsibility?

 

[RobDoc]

I know when you rent for a nonmember you put the reservation in their name. When they check in, do they leave their credit card on file to pay for incidentals or are those your responsibility?

If the renter desires to have charging privileges on their room key, they will need to provide some sort of payment guarantee (like cash or a credit card), but in the event that there is some irregularity with the final statement, the member may still be held liable. There was a recent report of a member not being allowed to make a reservation while a discrepancy was resolved regarding a recent reservation involving a family member's room charges. In this case, the situation was finally resolved, but ultimately the member may be held responsible for any actions (charges/damages) of anyone using a reservation made using their points.

 

[JimMIA]

First of all, Granny...great thread, as usual.

I like Doc's contract. It's in plain English, I can understand it, and it covers most of the stuff I would want to know if I was either a renter or owner.

I would NOT use the other contract for the following reasons:

Upon signing the rental agreement, the rented points (390) become the tenant’s until they expire the following February 28th, 2005.

Uh, no...actually, they don't. The points remain the property of the Owner, and there is absolutely nothing either party can do to change that.

Cancellation and Refunds:
Tenant will be held to the same terms as a DVC member (i.e. cancellation on the day of arrival will forfeit the rented points and reservation to Disney... cancellation within the last 30 days will put the points into a holding account where the tenant will have 60 days to attempt to reschedule the reservation or forfeit the points to Disney... cancellation at 31 days or greater from the reservation's original date of arrival, allows the tenant to attempt to reschedule the reservation, pending room availability, with the points, anytime prior to their expiration on Feb. 28th , 2005...(above lie deleted)

Tenant may request, and DVC member will attempt to make any reservation changes as directed by the tenant, within the limitations noted above. Tenant should be aware that this might not be possible because of limited room availability.

This wording opens the Owner up to an owner's worst nightmare -- a renter who doesn't know what they are doing, wants to keep changing plans, and then gets grumpy when the owner can't make everything nice for them.

Doc's wording is much better -- we'll try, but there are limitations.

Force Majeure:
In the case of a catastrophic event beyond the control of the Disney Vacation Club to fulfill the essentials of this contract, to provide the specified lodging during the specified times, both parties agree to equally share the loss of non-recoverable points.

This clause is silly on so many levels, it's hard to know where to start, but I'll start with the basic underlying concept -- WHY is this kind of an eventuality the responsibility of an owner??? Hasn't anyone ever heard of trip insurance? It's your vacation -- take normal, sensible precautions to protect yourself against silly phrases like "Force Majeure!"

Secondly, what's a catastrophe? I have DD3goingon23 , and I guarantee you if she pops a temp of 103+, that's a catastrophe which may cause me to cancel a vacation.

You wanna buy half of that? No? Okay, let's sue each other.

A much better thing to put in the contract -- better for both the renter and owner -- is that everything is non-cancellable and non-refundable. If you do that, the renter can get trip insurance, and can collect any non-refundable deposits they lose. If you put, "Oh...we'll just work everything out and get along peachy," they can't collect a penny.

I'm sure there are other things that both renters and owners would like to have in a contract, but I think everybody would be way ahead of the game if we left some of the legal mumbo-jumbo out.

 

[JimMIA]

And also...

... cancellation within the last 30 days will put the points into a holding account where the tenant will have 60 days to attempt to reschedule the reservation or forfeit the points to Disney...

I don't have a clue where this came from, but that is NOT what holding account is! This is a TOTAL misinterpretation of holding account.

Also, obviously a tenant's ability to "...attempt to reschedule the reservation" would be about the same as their ability to fly around the castle with Tink. This implies they can reschedule, which of course they cannot. It's confusing on its best day; misleading on its worst.

 

[JohnNJ]

"Typically, force majeure clauses cover natural disasters or other "Acts of God", war, or the failure of third parties--such as suppliers and subcontractors--to perform their obligations to the contracting party. It is important to remember that force majeure clauses are intended to excuse a party only if the failure to perform could not be avoided by the exercise of due care by that party."

 

[JimMIA]

"Typically, force majeure clauses cover natural disasters or other "Acts of God", war, or the failure of third parties--such as suppliers and subcontractors--to perform their obligations to the contracting party. It is important to remember that force majeure clauses are intended to excuse a party only if the failure to perform could not be avoided by the exercise of due care by that party."

Right...I understand what it means. But what I'm saying - and probably not well - is that this clause protects no one, and makes the owner responsible for something for which they should have zero responsibility.

Force majeure, among other things, is what trip insurance is for. An owner should not intentionally interject themselves into this mess.

 

[JohnNJ]

Thanks.

 

[Granny]

Thanks all for the great suggestions, and comments.

The credit card charges is a recent issue, but probably a good idea.

From those who rent the points from other members, are there any "protections" that you would want to see in there? It seems to me that since trust is required by both parties, there should be some things that protect the one paying for the rental points?

And not to make it too complicated, but would one use the same contract for a point transfer between members (with the appropriate language changes, of course)?

I don't think we'll rent points very often, but as I look at looming college tuitions, etc I'd prefer to do my homework (pun intended ) now rather than scrambling for it.

Keep those suggestions coming...I think they're great!

 

[OnMedic]

This is a great thread...!

Now, can someone pull this all together into a well established colaborative effort called a DIS Renters Contract Template?

Thanks!

 

[JimC]

Be happy to share a fairly comprehensive sample contract but I don't know how to post it here.

Edit: Doc is helping me get this posted. Thanks Doc!

 

[CharlesTD]

I do know that when I make the ressie I tell MS that I do not want room charging to be allowed now wether they do this or not I have no idea. We also make sure to spell out the entire details of the rental agreement right down to availability should the renter have to cancel and how the points work. If they do cancel it is non refundable and the points will be re alocated for use at a later date and if they go into holding they have x number of months in which to use them if they are not used they forefit the points and the money paid for said points.

 

[RobDoc]

Many thanks to JimC, here is a sample contract he has provided:

Sample Rental Agreement for Disney Vacation Club Points​

This agreement is made the _____ day of ____________, 2005 by and between RENTER1 and RENTER2 (together “Renter”) and MEMBER1 and MEMBER2 (together “Member”).​

Terms: Non-Disney Vacation Club Members​

1 – 200 points $10.00 per point​

201 or more points $ 9.00 per point​

Disney Vacation Club Members​

1 – 200 points $8.00 per point​

201 or more points $7.00 per point​

In addition to payment for points, Renter is responsible for any exchange fees assessed for non-Disney Vacation Club resort accommodations. Such fees are due at the time of the initial deposit, are in addition to the deposit requirements and are non-refundable.​

Renter will email Member with the first and last names and ages of each person staying at the resort, the arrival and departure dates, the resort (first, second and third choice), the accommodations (studio, 1 bedroom, 2 bedroom, grand villa, etc – if you are flexible rank the order of preference) and any special requests (non-smoking, medical restrictions, and the like).​

[/center]Member will confirm availability with Member Services and make reservation in Renter’s name. At this time Member will provide the Disney Vacation Club confirmation number to Renter. A 10% deposit, plus exchange fees (if any) are due via PayPal.[/center]

Upon receipt of written confirmation from Disney Vacation Club (this takes from five to ten days) and confirmation from PayPal of Renter’s initial 10% deposit and exchange fees (if any); Member will fax the confirmation notice to Renter. At this time a further 10% payment is due via PayPal. Confirmation is required from PayPal within 5 business days or reservation will be cancelled and the initial deposit and exchange fees (if any) forfeited. Member will always retain control over the reservation.​

The balance of 80% is due 60 days prior to the arrival date via PayPal. If PayPal does not confirm the final payment within 5 business days of the due date, the Member shall contact Renter to advise that PayPal must confirm the final payment within an additional 5 business days or the reservation shall be cancelled and all monies paid to date forfeited.​

If Renter wishes to change the reservation, Member will make reasonable efforts to assist Renter to make such changes. Renter shall be responsible for 100% of any additional charges assessed or costs incurred to accommodate Renter’s changes. Payment for these changes shall be due via PayPal upon e-mail or fax notice from Member. Confirmation of payment for such changes is required from PayPal within 5 business days of such notice or reservation will be cancelled and all monies paid will be forfeited.​

If Renter wishes to cancel the reservation, Member will make reasonable efforts to assist Renter to cancel the reservation on a timely basis. Cancellation must take place 31 days or more in advance of arrival to avoid penalties. Renter will be repaid for any points that are not subject to any restrictions and are returned to their original Disney Vacation Club status and use year. Points that are in holding accounts, or are subject to banking or borrowing restrictions or are permanently transferred outside of the Disney Vacation Club resort collection are repaid only if Member can rent them and only to the extent of any rental payments received by Member for such points up to and not to exceed the amounts paid by Renter. Member shall deduct any nonrefundable fees or costs incurred by Member prior to returning any monies due to Renter. Member shall return any monies due to Renter via PayPal within 5 business days of the date that such determination is made.​

Members are subject to all reservation policies of Disney Vacation Club whenever they make a reservation – whether it's for the Member, a guest or a renter. If a reservation is made within 31 days of travel, Members are automatically subject to holding account rules should they need to cancel the reservation. Because of this restriction Renter must make payment in full via PayPal (must be confirmed by PayPal) before Member will make a reservation within 31 days of arrival.​

Renter agrees to abide by all Disney Vacation Club terms, policies and rules applicable to Disney Vacation Club members and Disney Vacation Club membership. Renter agrees to be responsible for any unpaid charges or damages to the unit rented, including all contents and improvements, Disney Vacation Club property and Disney property during his/her stay that are assessed against Member or his membership. Any unpaid charges or damages assessed shall be reimbursed to Member via PayPal within 10 business days of notice to Renter. Sending a fax or e-mail copy of a Disney Vacation Club or other Walt Disney Company communication assessing the charges or damages shall satisfy notice to Renter.​

This is an agreement to rent points that represent accommodations only. There are no ticket media, transportation, meals, transfers, insurance, or other items included.​

Renter understands that Members do not get daily housekeeping services at Disney Vacation Club resorts. If your stay is for less than eight nights, you'll receive Trash & Towel service on day four. If your stay is for eight nights or longer, you'll receive full cleaning service on day four, and Trash & Towel service on day eight. After that, the cycle begins again on day twelve. Day one is check-in day.​

Pets are not permitted to stay at Disney Vacation Club Resorts, except for service animals as defined by the Americans with Disabilities Act.​

​

Reservation Summary​

Reservation number:
Resort:
Accommodations:
Check-in:
Check-out:
Special requests:
Number of Points:
Cost of Points: $
Exchange or other fees: $
Total due Member:
10% deposit: $
Exchange fees: $
10% 2nd payment: $
80% final payment: $

Agreed and accepted on the date first shown above.



RENTER1 (Renter) Date Signed



RENTER2 (Renter) Date Signed


MEMBER1 (electronic signature)
MEMBER1 (Member) Date Signed


MEMBER2 (electronic signature)
MEMBER2 (Member) Date Signed

 

[Granny]

JimC...that's a great looking contract. Very well thought out.

I'm thinking that some language will change depending on the nature of the reservation. For instance, if someone is renting out their points and the reservation is close to the end of their use year, they may have to put the cancellations with refunds more like 90 days out to give themselves a chance to get another rental arrangement.

If a point transfer is involved, does the language need to change? I see a price difference for members and non-members, and this makes sense since the risk is pretty much eliminated on point transfers.

Great points being brought forward...thanks for the continued input.

 

[JimC]

...I'm thinking that some language will change depending on the nature of the reservation. For instance, if someone is renting out their points and the reservation is close to the end of their use year, they may have to put the cancellations with refunds more like 90 days out to give themselves a chance to get another rental arrangement.

If a point transfer is involved, does the language need to change? I see a price difference for members and non-members, and this makes sense since the risk is pretty much eliminated on point transfers.....

Thanks Granny!

I actually had 90 days for the balance in an earlier version, then wondered if that was to severe for most situations -- trying to be fair to the person renting. I could be persuaded that I am wrong in that thought. But yes, at some point a 90 day requirement would be prudent.

Transfers would require a slightly different version because the characteristic of the transaction is different, but many of the underlying issues are similar.

The pricing difference is just my view that volume and risk are factors in pricing and this is an attempt to recognize both. It is not definitive, but at least it gets one to think about how they feel about those issues.

Anyone should seek a lawyer's counsel if they want to ensure that a document they use will achieve its legal intent. This topic of point rentals is primarily a trust based process as the amounts at risk are too small to be litigated and too inconvenient to be taken to small claims court if they qualify for that venue. The document is primarily to ensure a good common understanding amongst the parties as to what each is expecting of the other.

 

[Granny]

Anyone should seek a lawyer's counsel if they want to ensure that a document they use will achieve its legal intent. This topic of point rentals is primarily a trust based process as the amounts at risk are too small to be litigated and too inconvenient to be taken to small claims court if they qualify for that venue. The document is primarily to ensure a good common understanding amongst the parties as to what each is expecting of the other.

Jim...I agree wholeheartedly. I think that the examples of contracts and clauses provided are pretty easy to read and understand.

I like the additional clauses that you have in yours that really aren't legal requirements but more like information, such as Trash & Towel and pets. I also like the clause in another version that stated "requests are not guaranteed".

 

[ducklite]

In mine I also include clauses about only the number of people shown on the contract will occupy the room (and I won't rent to more than DVC's stated occupancy) and no-smoking in/on non-smoking rooms or balcony's, and that smoking requests are just requests and not guaranteed.

Mine also requires a fee if the person cancels within the cancellation period for whatever reason. If I've got to spend time making mroe phone calls or doing more paperwork, then I'm going to get something out of it.

Anne

 

[Suzylynne]

I know when you rent for a nonmember you put the reservation in their name. When they check in, do they leave their credit card on file to pay for incidentals or are those your responsibility?

Hi - did you ever get an answer for this question?
Thanks for your help.