Question regarding sale of contract / points

[itutorfortravel]

Hi! Relatively new DVC member here with absolutely NO intention of selling, but I always like to have this type of info, "just in case"...

Looking to transfer some points into my account for an upcoming trip. Let's say I do so and then use some of those points but not all, and then decide to sell...

Would the transferred points go with my home resort contract points in the sale? If not, what happens to them? What if they are for a different resort than where I own?

Thanks

 

[davedmaine]

Hi! Relatively new DVC member here with absolutely NO intention of selling, but I always like to have this type of info, "just in case"...

Looking to transfer some points into my account for an upcoming trip. Let's say I do so and then use some of those points but not all, and then decide to sell...

Would the transferred points go with my home resort contract points in the sale? If not, what happens to them? What if they are for a different resort than where I own?

Thanks

Pretty complex question for someone with no intention of selling?

 

[disneynutz]

My guess is that you will be in a big mess. MS has trouble keeping track of transferred points without selling a contract. The points don't show online so you can't even verify that they are there without calling.

We transferred points once and it caused us to loose a reservation at AKV CL while the MS Advisor tried to figure out what to do.

Bill

 

[itutorfortravel]

Pretty complex question for someone with no intention of selling?

I'm not selling but I don't like to make an investment in something without knowing how it would be handled in all kinds of situations

 

[itutorfortravel]

My guess is that you will be in a big mess. MS has trouble keeping track of transferred points without selling a contract. The points don't show online so you can't even verify that they are there without calling.

We transferred points once and it caused us to loose a reservation at AKV CL while the MS Advisor tried to figure out what to do.

Bill

Thank you for your reply! I have heard some people say that if you transfer points that are the same home resort and UY that they do show up online in your account. Do you know if this is true? It's a lot of money and I don't want to run into any problems using the points... While I don't plan on selling my DVc contract, the points that I buy (if they aren't the same as my home resort) might be ones I hold onto for a year and a half to two years... Who knows what life can bring in that time so I'm just trying to understand how those kind of points are handled if you found yourself in a position to sell your contract...

 

[LisaS]

If you transfer in points from the same resort and UY you own, MS can just add them to the current points balance in that contract in which case I expect they should transfer with the sale because they are part of the contract.

When the transferred points do not match a resort and UY you own, MS cannot put them into a contract. I suspect they are tracked at the account level, through notes tied to your account, something along the lines of "100 BLT Sep UY points transferred in on 10/8/2014 from member number xxxx". In other words, they are tied to your account, not part of the point balance of a particular contract.

Now you want to sell your contract to someone else. Those transferred points are not part of that contract so I would not expect them to pass to the new owner. If that was your only contract, you cease to be a DVC member and those transferred points probably just disappear along with your membership. If you have a second contract and are still a member, those transferred points are still tied to your account for your use. You cannot transfer them out since you cannot transfer points in and out in the same UY.

 

[disBOBney]

If you transfer in points from the same resort and UY you own, MS can just add them to the current points balance in that contract in which case I expect they should transfer with the sale because they are part of the contract.

When the transferred points do not match a resort and UY you own, MS cannot put them into a contract. I suspect they are tracked at the account level, through notes tied to your account, something along the lines of "100 BLT Sep UY points transferred in on 10/8/2014 from member number xxxx". In other words, they are tied to your account, not part of the point balance of a particular contract.

Now you want to sell your contract to someone else. Those transferred points are not part of that contract so I would not expect them to pass to the new owner. If that was your only contract, you cease to be a DVC member and those transferred points probably just disappear along with your membership. If you have a second contract and are still a member, those transferred points are still tied to your account for your use. You cannot transfer them out since you cannot transfer points in and out in the same UY.

???
I realize you have been around a lot longer than I have, and therefore may have some knowledge that I don't, but your answer doesn't seem to be in agreement with what I would suspect. As points can only be transferred once, I would think that, If a person's contract is sold and they were still holding points that were transferred to them those points would cease to exist upon the completion of the sale, regardless if they matched resort and use year of the sold contract or not and regardless if you owned other contracts or not. IMO

Or is it that transferred points transfer to a member number and not a contract?

 

[disneynutz]

Bottom line is these are best guesses. If it should ever happen good luck finding someone at DVC to give you a solid answer and then good luck having them process the contract correctly.

Bill

 

[LisaS]

???
I realize you have been around a lot longer than I have, and therefore may have some knowledge that I don't, but your answer doesn't seem to be in agreement with what I would suspect. As points can only be transferred once, I would think that, If a person's contract is sold and they were still holding points that were transferred to them those points would cease to exist upon the completion of the sale, regardless if they matched resort and use year of the sold contract or not and regardless if you owned other contracts or not. IMO

Or is it that transferred points transfer to a member number and not a contract?

I'm speculating based on reports here that transferred points that exactly match the resort and UY of one of the receiving member's contracts are deposited into that contract and visible online. They appear to be indistinguishable from any other points in that contract. Therefore, if the receiving member sells that contract, I would expect the current point balance would stay with the contract, even if some/all of the points had been transferred in. I don't think the transfer rules apply in this case because the owner is selling the contract, not transferring points out of the contract.

Transferred points that do not match the resort and UY of one of the receiving member's contracts are managed manually somehow. I suspect they are not tied to a contract because they don't match the resort and/or UY of that contract. I would expect they would be managed manually at an account level, not a contract level. But however they are managed, I don't believe the seller could re-transfer those points to someone buying one of their contracts. If the seller had at least one remaining contract, they would still have their membership and those transferred points would likely still be available to them to use. If no longer a member, then the transferred points would likely disappear along with their membership since the receiving member no longer had any way to use them.

 

[KingRichard]

You can't transfer banked points?

You can't bank transferred points also?

So I think those points would have to be used in less then a years time and maybe a lot less.

Unless they only cost $5 per point is seems like a lot of risk!

 

[LisaS]

You can't transfer banked points?

Correct.

You can't bank transferred points also?

Actually you can bank transferred points.

 

[supersnoop]

I can't think of any good reason to get a transfer that you aren't going to use immediately.

 

[itutorfortravel]

I can't think of any good reason to get a transfer that you aren't going to use immediately.

PP here! I need some points to complete an upcoming trip, but I don't need a huge amount. Looks like I will have to buy more than I need to get a transfer, which makes sense since the seller can only do one transfer per year. I don't want to rent because I want to be able to make changes to the booking if needed.

I actually do have enough points to book the complete trip IF I want to borrow my 2015 points. But I really don't want to do that because it may ruin any chance of our getting back to Disney until late 2016. We have an August UY and wouldn't get more points till Aug 2016. And I don't want to get into an endless borrowing cycle either.

We don't have any intention of selling our contract, but I tend to ask the "what if" questions a lot. And if we decided to sell for whatever reason, I don't want to try to sell a stripped contract and I'm wondering what would happen with any leftover transfer points.

Idk, maybe my approach and logic doesn't make sense. I'm new to the DVC, so if you veteran members have any guidance for me, I'm all ears

Thanks!

 

[supersnoop]

PP here! I need some points to complete an upcoming trip, but I don't need a huge amount. Looks like I will have to buy more than I need to get a transfer, which makes sense since the seller can only do one transfer per year. I don't want to rent because I want to be able to make changes to the booking if needed.

If you have to transfer more than you need, you should still use all of the transferred points first and bank any of your own points that you don't need to use. I mean, would you rather bank the transferred points or your own? At least your own will be easier to manage.

 

[LisaS]

I actually do have enough points to book the complete trip IF I want to borrow my 2015 points. But I really don't want to do that because it may ruin any chance of our getting back to Disney until late 2016. We have an August UY and wouldn't get more points till Aug 2016. And I don't want to get into an endless borrowing cycle either.

I would borrow the points. I don't like spending money I don't have to spend. If I had enough points in my next UY to cover the trip I would borrow my own points rather than pay someone else for their points.

If you want to go to Disney again before late 2016, that is the time I would consider transferring points -- when I really needed them. Who knows what might happen to change your plans between now and then. Maybe things will come up in the meantime that cause you to use your vacation time for other things like a wedding or family reunion out of state, or a desire to go visit the Grand Canyon instead of Disney.

There's nothing wrong with being in borrowing mode. If you decided to sell your contract and it was stripped, you don't necessarily lose that much money over a loaded contract. There are several posts here discussing that very topic and the consensus seems to be that stripped contracts sell for more than they really should and loaded ones go for less than they should.

As supersnoop said, managing transferred points can be a pain if they are not the same resort and UY as your own contract. If you have more transferred points than you need you can bank them but that increases the possibility that MS will lose track of them since I think they track them through the equivalent of a virtual sticky note on your account.

ETA: There is one advantage to getting a transfer vs borrowing and that is if you have to cancel your trip (and do so at least 31 days before check in). The transferred points could be banked if you cancel within the banking window for the UY of those points but the borrowed points stay in the UY into which they were borrowed. If you don't plan to use them for something else within that UY, you would have to rent them out or lose them.

 

[Dean]

transferred points would go with the contract they were transferred to as I understand it. The issue would be dependent on whether selling the entire membership or a sub contract where applicable.