Perhaps The Most Confusing Question Ever?

[lugnut33]

OK, this might be a tough one to get an answer on.

I am purchasing a 50 pt. contract that currently has 42 points in reservation. Hopefully the contract will go through quickly, but if I wait until it all gets approved I won't be able to take advantage of using the 42 reservation points for a trip I have planned in February. Do you think the current owner of the contract could place a reservation in my name?

 

[KAT4DISNEY]

My understanding is that all reservations associated with a contract are cancelled upon transfer.

I've had two contracts complete and be available for reservations in 4 weeks time so maybe you'll get lucky and have it in time!

Are you in ROFR yet?

 

[lugnut33]

My understanding is that all reservations associated with a contract are cancelled upon transfer.

I've had two contracts complete and be available for reservations in 4 weeks time so maybe you'll get lucky and have it in time!

Are you in ROFR yet?

Not yet, I just got the contract for sale. I'll be faxing in the papers and overnighting the deposit to get this moving ASAP.

 

[KAT4DISNEY]

I have heard that reservation points can be transferred (though not verified). Maybe something could be worked out that you could transfer them to your existing contract if you haven't used your transfer for the year? I don't quite know how that might go monetarily - maybe some sort of agreement with escrow money if someone backed out of the sale? Maybe your broker has had this come up and would have some input.

 

[Sandisw]

I believe that reservation points can only be used toward stays at non-DVC resorts correct?

And, don't these require a $95.00 fee?

The current owner could probably book a reservation for you with those points, and put a delayed closing on the contract. We did that when we sold. We had a trip scheduled for August (sold in April) and didn't close until we got done with the trip.

But, what is the UY? If I am not mistaken, you can not book AND travel during the last 4 months of a UY on reservation points.

 

[KAT4DISNEY]

I believe that reservation points can only be used toward stays at non-DVC resorts correct?

And, don't these require a $95.00 fee?

The current owner could probably book a reservation for you with those points, and put a delayed closing on the contract. We did that when we sold. We had a trip scheduled for August (sold in April) and didn't close until we got done with the trip.

But, what is the UY? If I am not mistaken, you can not book AND travel during the last 4 months of a UY on reservation points.

If done this way I'd be a bit concerned about ROFR. It may not happen, but if Disney steps in on the contract then the reservation would be gone.

 

[Sandisw]

If done this way I'd be a bit concerned about ROFR. It may not happen, but if Disney steps in on the contract then the reservation would be gone.

It shouldn't as Disney takes over the terms of the original contract. If it is written that the closing can not happen until a certain date because of a reservation, then Disney would be obligated to accept those same terms during the ROFR process.

As long as it is part of the contract with the buyer, there should be no risk with Disney buying.

The problem is that the buyer and seller would have to agree to payment upfront, I think, so that the seller gets something for the points ahead of time in case Disney steps in to buy.

When I was selling, if Disney had exercised ROFR, I would not have lost my own reservation as Disney could not close until I took that trip. Those were the terms of the sale.

 

[lugnut33]

It shouldn't as Disney takes over the terms of the original contract. If it is written that the closing can not happen until a certain date because of a reservation, then Disney would be obligated to accept those same terms during the ROFR process.

As long as it is part of the contract with the buyer, there should be no risk with Disney buying.

The problem is that the buyer and seller would have to agree to payment upfront, I think, so that the seller gets something for the points ahead of time in case Disney steps in to buy.

When I was selling, if Disney had exercised ROFR, I would not have lost my own reservation as Disney could not close until I took that trip. Those were the terms of the sale.

The reservation points must be used by May. Contract is a June use year.

There are also 9 points that need to be banked.

 

[Sandisw]

The reservation points must be used by May. Contract is a June use year.

There are also 9 points that need to be banked.

With a June UY, those reservation points will then have to be booked by the end of January in order to use them (unless I am misunderstanding the Rule of 4---which is certainly possible).

And, I might ask that the owner bank the 9 points since he/she has only until the end of January for that as well and given that ROFR seems to be taking at least 3 weeks right now, you won't be closed in time to do that yourself.

My suggestion would be to talk to your broker and see if there is anything you can do utilize these points.

Good luck!

 

[CarolMN]

The rule of four doesn't apply - the points are already in reservation status. DVC has already sent the required number of DVC room nights over to CRO to rent for cash, so there is no need for the restriction.

As already mentioned, reservation points may NOT be used to make a reservation at a DVC resort or for a trade via RCI or Lake Buena Vista Trading Company.

 

[Sandisw]

The rule of four doesn't apply - the points are already in reservation status. DVC has already sent the required number of DVC room nights over to CRO to rent for cash, so there is no need for the restriction.

As already mentioned, reservation points may NOT be used to make a reservation at a DVC resort or for a trade via RCI or Lake Buena Vista Trading Company.

Thanks, Carol. That was the piece I wasn't sure about. So, once they are reservation points, they can be used to book at any time, providing there is availability.

Would there be another $95.00 fee? Just trying to increase my knowledge.

 

[lugnut33]

Thanks, Carol. That was the piece I wasn't sure about. So, once they are reservation points, they can be used to book at any time, providing there is availability.

Would there be another $95.00 fee? Just trying to increase my knowledge.

I found out the original reservation was for Caribbean Beach. In this instance somebody had already paid the $95.... of course I would expect to pay it again.

 

[CarolAnnC]

Yes, a $95 booking fee applies whether you use Reservation Points or regular points..