First time selling a confirmed reservation question

[FlynnRiderSwitch]

We are selling a ressy.......details removed by a Mod........... wondering what our obligation is after we accept payment and change to the buyer’s name.

Can the new ressy holder cancel anytime and expect us to refund? If they do want/need to cancel, are there rules in place that we as DVC owners have to do?

Or should the buyers purchase vacation insurance just like they booked a vacation themselves?

We don’t want to make a habit of selling our points as we would much rather use them but these cruises we go on just get in the way! Thanks all for any help.

 

[drusba]

You should not assume that there is any general rule that exists that says the renter cannot get his money back upon cancellation. What happens if the renter needs to cancel is decided by what the member (or the rental agency though which the member may be renting through) and the renter actually agree to in the contract entered into by the parties that sets out what happens if the renter cancels. Moreover, failure to have an agreement that states that payment is not returnable if the renter cancels could arguably result in your having to return the rental proceeds because it might be presumed that the renter could get the money back if the renter cancels when the parties have no agreement otherwise.

 

[Willow Ufgood]

Are you selling on your own or thru an agency? You can set any terms you want if you're doing it on your own. But if you're going thru an agency then you are subject to their terms which will be laid out in your agreement with them.

Some agencies include a form of "insurance" for the buyer which allows them to cancel and get a portion of their money back in the form of a credit. One agency that I know of will then ask the owner to change the names on the rental IF they can find someone else to take the reservation. But they do not expect the owner to refund the money they received. It's all part of the agreement that the owner signs with the agency.

 

[FlynnRiderSwitch]

You should not assume that there is any general rule that exists that says the renter cannot get his money back upon cancellation. What happens if the renter needs to cancel is decided by what the member (or the rental agency though which the member may be renting through) and the renter actually agree to in the contract entered into by the parties that sets out what happens if the renter cancels. Moreover, failure to have an agreement that states that payment is not returnable if the renter cancels could arguably result in your having to return the rental proceeds because it might be presumed that the renter could get the money back if the renter cancels when the parties have no agreement otherwise.

Are you saying that we need a written rental agreement stating no refunds? Would text messages stating this constitute an agreement?

 

[FlynnRiderSwitch]

Are you selling on your own or thru an agency? You can set any terms you want if you're doing it on your own. But if you're going thru an agency then you are subject to their terms which will be laid out in your agreement with them.

Some agencies include a form of "insurance" for the buyer which allows them to cancel and get a portion of their money back in the form of a credit. One agency that I know of will then ask the owner to change the names on the rental IF they can find someone else to take the reservation. But they do not expect the owner to refund the money they received. It's all part of the agreement that the owner signs with the agency.

We are selling on our own. Do we need a formal written agreement signed by both parties or are text messages good enough?

Should we not recommend travel insurance, or is travel insurance not applicable in an agreement between two families?

Thanks for the advice

 

[Sandisw]

Are you saying that we need a written rental agreement stating no refunds? Would text messages stating this constitute an agreement?

I think what she meant is that there is no set rule that defines what you as an owner want to do. It’s between the owner and the renter and that a written contract would lay out all of those terms, including if you want it to be non refundable.

Terms should be very clear. It’s why I will use a broker from now on because it’s all covered.

I do not think I’d go with text messages. And while I was comfortable with email, many have signed written contract.

 

[lilsonicfan]

I haven't bothered with a contract as it seems to me to be onerous for either side to try to enforce.

As the owner, I would set the terms you are comfortable with. If you want it to be non-refundable, state that. For a reservation that could be cancelled and points still bankable, for example, you might say that you'll refund if a cancellation is made more than 31 days out. Or, you might ask for a deposit that is non-refundable if the reservation might be easily rented out, should this person cancel in enough time.

 

[Willow Ufgood]

We are selling on our own. Do we need a formal written agreement signed by both parties or are text messages good enough?

Should we not recommend travel insurance, or is travel insurance not applicable in an agreement between two families?

Thanks for the advice

IIRC, DVC permits owners to rent their points but requires the owner to have a contract with the renter. I don't know how they can enforce it but it's always good to CYA.

I send a .pdf document via email that the renter signs and returns before making a payment. It spells out a schedule for payment(s), any changes that are permissible like adding guests, refund terms, etc. don't offer refunds for reservations that use distressed points but do include a prorated refund for reservations that need to be canceled more than 30 days before arrival. I never had a guest need a refund except during COVID and DVC was very accommodating during that time.

 

[houseofduck]

IIRC, DVC permits owners to rent their points but requires the owner to have a contract with the renter. I don't know how they can enforce it but it's always good to CYA.

I send a .pdf document via email that the renter signs and returns before making a payment. It spells out a schedule for payment(s), any changes that are permissible like adding guests, refund terms, etc. don't offer refunds for reservations that use distressed points but do include a prorated refund for reservations that need to be canceled more than 30 days before arrival. I never had a guest need a refund except during COVID and DVC was very accommodating during that time.

I do something similar. I send a PDF rental agreement along with the email confirmation of the reservation from Disney. In the agreement, I state that payments are non-refundable. This way, if the renter wants to get insurance, they can. I also allow for modifications for as long as the points are valid and there is availability.

If you do a search on this forum, you can find sample rental agreements you can use as a start.

Here is one link: https://www.disboards.com/threads/effective-dvc-point-rental-agreements.895654/

 

[Sandisw]

IIRC, DVC permits owners to rent their points but requires the owner to have a contract with the renter. I don't know how they can enforce it but it's always good to CYA.

I send a .pdf document via email that the renter signs and returns before making a payment. It spells out a schedule for payment(s), any changes that are permissible like adding guests, refund terms, etc. don't offer refunds for reservations that use distressed points but do include a prorated refund for reservations that need to be canceled more than 30 days before arrival. I never had a guest need a refund except during COVID and DVC was very accommodating during that time.

DVC could decide to require contracts be submitted for any and all rentals. While you don’t need their approval, nothing to stop them from saying contracts need to be shared with DVC to ensure the specific terms of the POS are in that agreement.

 

[mort1331]

And a contract could be as simple as emails exchanged agreeing to dates and price. Does not need to be complicated. Since any breach of any contract will be very hard to uphold if people are in different states or countries.

 

[FlynnRiderSwitch]

I do something similar. I send a PDF rental agreement along with the email confirmation of the reservation from Disney. In the agreement, I state that payments are non-refundable. This way, if the renter wants to get insurance, they can. I also allow for modifications for as long as the points are valid and there is availability.

If you do a search on this forum, you can find sample rental agreements you can use as a start.

Here is one link: https://www.disboards.com/threads/effective-dvc-point-rental-agreements.895654/

Thank you so much!