Point Transfer Question

[CSLucas]

We are selling one of our 3 contracts (all at GF, so all the same member number). The contract states no points available because we had a trip booked using all the points. When we modified our trip, we ended up with 13 points in holding, and there is a room open in November to use those points. The issue is that the points in holding are associated with the contract we are selling, and according to Member Services I cannot transfer between contracts, just between member numbers. Is this accurate information? Any way around this?

 

[Marionnette]

We are selling one of our 3 contracts (all at GF, so all the same member number). The contract states no points available because we had a trip booked using all the points. When we modified our trip, we ended up with 13 points in holding, and there is a room open in November to use those points. The issue is that the points in holding are associated with the contract we are selling, and according to Member Services I cannot transfer between contracts, just between member numbers. Is this accurate information? Any way around this?

MS is correct. Transfers can occur between memberships but not between contracts in the same membership.

You could book a reservation using those 13 points and rent it out. But closing cannot occur before the reservation has ended.

 

[Sandisw]

As noted, transfers are between memberships, and not contracts. I think there are times when we use words interchangeably here on the DIS.

So, for others:

A membership is what holds your contracts. When you buy contracts that have the same UY and the same owner, they go in one membership. Anytime you buy more contracts with the same UY and same owners, it is an add on to your membership.

People will say I am "adding on to my contract" but in reality, it is to the membership. Contracts are deeded real estate interests and can not be changed. As you add on, your contracts get numbered with XXX.1, XXX.2, etc.

If you buy a different UY, or own a contract with different owners, it is a new membership.

Transfer is when one owner moves points from their membership to another membership. It is limited to one in or out per UY, unless you are the owner of both memberships and then MS has been allowing more than one (though that could stop at any time).

So, points associated with your contract can not be saved when you sell the contract unless you had another membership to transfer them to for use.

 

[CSLucas]

Well darn. Closing is the 24th so I'll ask around with people I know to see if anyone wants a 1-night stay in the next two weeks. The points will most likely expire before Disney gets the membership transferred over (or else would be expiring within the month) so they wouldn't do the new owner any good anyways.

 

[CarolMN]

Well darn. Closing is the 24th so I'll ask around with people I know to see if anyone wants a 1-night stay in the next two weeks. The points will most likely expire before Disney gets the membership transferred over (or else would be expiring within the month) so they wouldn't do the new owner any good anyways.

If the contract went through ROFR with those points, you might gum up the closing by doing anything to alter the point status of the contract being sold. Not totally sure how/when a contract goes through estoppel, but that's another opportunity to discover the discrepancy and mess up the closing. Talk to your broker/closing agent before you use the points. Losing the value of 13 points is very probably not worth the potential hassle. JMHO. YMMV.

 

[drusba]

I highly advise against any attempt to do anything at all with those points in the contract that is about to close. Any attempt to make a reservation with those points this close to closing would be legally improper at this stage in the sale process. ROFR has already occurred and the contract you are selling is represented as having and retaining whatever its current status is. If you do a reservation, Disney will likely withdraw its ROFR waiver, because it will not close on any contract that has an outstanding reservation. It may even cancel the reservation. The buyer will have a right to back out of the closing and in fact could pursue you for any expenses the buyer has incurred in relation to the sale. Your broker, if the closing does not occur because of your conduct, will have the right to recover from you whatever commission the broker was supposed to get.

 

[CSLucas]

Thanks, everyone. As mentioned in my original post, these extra points in holding are a result of modifying a reservation that took place last week. The contract was sold as having ZERO remaining points in the current and next UY. The 13 points are now in holding because the modification used fewer points than the original reservation (which was made well before the contract, and everyone is well aware of it). The buyers have no legal right to those 13 points so nobody is doing anything improper, and Disney waived ROFR on a contract with 0 points (and if I transfer them out that's exactly what is going to be sold)

 

[Sandisw]

Thanks, everyone. As mentioned in my original post, these extra points in holding are a result of modifying a reservation that took place last week. The contract was sold as having ZERO remaining points in the current and next UY. The 13 points are now in holding because the modification used fewer points than the original reservation (which was made well before the contract, and everyone is well aware of it). The buyers have no legal right to those 13 points so nobody is doing anything improper, and Disney waived ROFR on a contract with 0 points (and if I transfer them out that's exactly what is going to be sold)

That may be true, but if they see the transfer or use, it may delay things because of the “change” even though the the net totals stay the same.

I think I would still be sure to get approval that it won’t cause any issues for you as once that closing date passes, the buyer can walk on you and you don’t want this to somehow have an impact.