Help! I need a quick answer. RE: Seller transferring points during sale.

[VGCgroupie]

I am going under contract with a broker I have never used before and their contract does not have a clause stating I will be given compensation for any missing points. This gives me huge pause.

My question is can borrowed points be transferred out? Can banked points be transferred out? Can you transfer out points before the UY gets here?

I think there is minimal risk of them booking a room and staying on these points from the time the estoppel is issued and when Disney transfers account to me. But a transfer out is another story. So I am trying to figure out how many points are at risk. There are 200 banked into 2025 and 200 more coming in 2025.

Lastly, if they do use the points has anyone heard if Disney can or will do anything since they have had the contract submitted to them for transfer and it was clearly being sold. The points have been verified and are for sure there at time of contract and submittal to ROFR so it wouldn't be a case of lying up front.

 

[JackosinDIS]

Wow that’s a lot of questions!

Yes, points can be transferred out before the start of the UY arrives.

Generally, you can’t transfer banked (or borrowed) points, but if the Seller has another membership in their name then MS does allow transfers of banked points between memberships.

So IN THEORY they could transfer all the 2025 points… but you would be pretty unlucky if a seller did that!

I don’t think Disney would do anything about it if they did.

Maybe the way to deal with this is to insist the title company holds closing funds until the points have been loaded to your account. I have heard some will do that (never seen it myself)

Also, for comfort you could check if the seller has another membership in their names?

 

[VGCgroupie]

Wow that’s a lot of questions!

Yes, points can be transferred out before the start of the UY arrives.

Generally, you can’t transfer banked (or borrowed) points, but if the Seller has another membership in their name then MS does allow transfers of banked points between memberships.

So IN THEORY they could transfer all the 2025 points… but you would be pretty unlucky if a seller did that!

I don’t think Disney would do anything about it if they did.

Maybe the way to deal with this is to insist the title company holds closing funds until the points have been loaded to your account. I have heard some will do that (never seen it myself)

Also, for comfort you could check if the seller has another membership in their names?

The company that holds funds is my nemesis, hahahaha and they already selected First American, but maybe I can ask First American if they will do that, Im guessing the answer is no.

I will have to look and see if they own anything else. It's so frustrating that Disney doesn't have a better way of protecting resales, like once you get a ROFR request freeze that account to new bookings and transfers. But I know they have no reason to try and protect resales.

 

[VGCgroupie]

So I can only find one of the sellers names in the CA database not in FL, and CA you have to pay to see what the documents are but nothing appears straight forward Disney related. Also, they would have to hold title exactly the same for the memberships to be transferable right? The one I am buying is held in a trust, in CA all i can find is one of the sellers names not a trust.

 

[JackosinDIS]

So I can only find one of the sellers names in the CA database not in FL, and CA you have to pay to see what the documents are but nothing appears straight forward Disney related. Also, they would have to hold title exactly the same for the memberships to be transferable right? The one I am buying is held in a trust in CA all i can find is one of the sellers names not a trust.

Can’t answer how to find deeds held in the CA database… never tried.

However, I do know that memberships do not have to be titled the same in order to transfer banked points (I have done it). I think as long as one of the owners is the same they will treat it as a transfer between your own memberships.

Maybe if it’s something you are going to worry about you need to give this contract / broker a miss?

 

[VGCgroupie]

Can’t answer how to find deeds held in the CA database… never tried.

However, I do know that memberships do not have to be titled the same in order to transfer banked points (I have done it). I think as long as one of the owners is the same they will treat it as a transfer between your own memberships.

Maybe if it’s something you are going to worry about you need to give this contract / broker a miss?

Okay good to know it doesn’t need to be held the same.

It’s too great of a contract deal to just dismiss it without trying to figure out the best way to navigate this hurdle.

 

[disneylandtour]

I'd say that it's a problem that the contract doesn't have a clause for missing points. But on the upside: 200 banked points, to me says, this is an owner who has stopped going to Disney and now wants out.

 

[VGCgroupie]

I'd say that it's a problem that the contract doesn't have a clause for missing points. But on the upside: 200 banked points, to me says, this is an owner who has stopped going to Disney and now wants out.

There's a clause about how seller is financially responsible if the points are missing but how would we go about obtaining that money if they have already received funds. So to me thats basically a no clause since it would likely be me that has to go after them etc.

They did go prior year because that year had 8 points left only. They probably don't go anymore like you say but I am just paranoid of someone being shady.

 

[VGCgroupie]

First American wont withhold funds. Even though it pains me to do so I requested to switch to TRCS. We will see if they are willing.

 

[Brian Noble]

It's so frustrating that Disney doesn't have a better way of protecting resales

Disney is not in the business of making it easy for prospective buyers to not buy from them.

 

[geargrinder]

You could always ask that the seller transfers the points to you. That way, they would be secure and unavailable to the seller after that.

 

[VGCgroupie]

You could always ask that the seller transfers the points to you. That way, they would be secure and unavailable to the seller after that.

This is an interesting idea. Thanks!!

 

[Sandisw]

You could always ask that the seller transfers the points to you. That way, they would be secure and unavailable to the seller after that.

You can’t transfer banked points to another owner.

 

[VGCgroupie]

You can’t transfer banked points to another owner.

So if they do not have any other memberships I have at most 200 points at risk. If they do its then its full 400 at risk.

 

[Sandisw]

So if they do not have any other memberships I have at most 200 points at risk. If they do its then its full 400 at risk.

Correct, but TBH, this is always a risk with resale. An owner can transfer out points before the contract leaves their membership. The risk is small and if the contract at least mentions they will be held accountable, you have that.

If it makes you more comfortable, ask them to add an amount to the contract.....and from the cases in which we heard about this happening, its always made correct, so brokers must have a way to get the seller to pay up or maybe they cover it on their own?

 

[VGCgroupie]

Correct, but TBH, this is always a risk with resale. An owner can transfer out points before the contract leaves their membership. The risk is small and if the contract at least mentions they will be held accountable, you have that.

If it makes you more comfortable, ask them to add an amount to the contract.....and from the cases in which we heard about this happening, its always made correct, so brokers must have a way to get the seller to pay up or maybe they cover it on their own?

Many brokers have an exact figure, usually $20pp and I believe its the broker who gives up the money (they may then have a way to get money from seller) but this particular broker doesn't have any dollar figure and says they are not liable in any way.

I would like to believe people are decent and wouldn't do this, but you never know.

 

[Brian Noble]

How often do we hear about missing points post-estoppel? Almost never. I mean, it does happen, but it is very very rare. I suppose you could also ask to have a term included in the contract, though I suspect you may have tried that already?

So, yes, there are points at risk, but I personally would assess the risk as "quite low".

 

[VGCgroupie]

How often do we hear about missing points post-estoppel? Almost never. I mean, it does happen, but it is very very rare. I suppose you could also ask to have a term included in the contract, though I suspect you may have tried that already?

So, yes, there are points at risk, but I personally would assess the risk as "quite low".

I think part of my hesitation is the broker (Redweek) isn’t really used much by people on these boards so I’m a being extra cautious.

 

[CarolynFH]

I think part of my hesitation is the broker (Redweek) isn’t really used much by people on these boards so I’m a being extra cautious.

I don’t blame you. RedWeek doesn’t know what it’s doing as a broker, with other timeshares as well as DVC. Good luck! I hope all goes well for you.

 

[VGCgroupie]

I don’t blame you. RedWeek doesn’t know what it’s doing as a broker, with other timeshares as well as DVC. Good luck! I hope all goes well for you.

Ain't that the truth been working on this deal for 2 months already. Only email correspondence and if I send an email asking a question it takes 4 or more days for a response. Slowest conversation of my life.