Terms and Contract for Renting Point

[cds62]

I posted this on the other board but didn't get any responses, so I hope someone on this site will be able to help.
I am looking at renting some of my points and was wondering what are the typical terms of the rental that others have used in the past, specifically about up front money and when it is due as well as the balance being due. I was also wondering what type of cancellation terms are usually allowed.
Is there a standard contract that has been used and where can it be found on the net?
Thanks for the help.

 

[Kim&Chris]

good question.

I've rented points several times so far, and each seller has asked me to do something different.

In all cases, the seller asked for approximately 50% after they presented me with a confirmed reservation. Some wanted certified checks, others wanted to use paypal.

Some asked for the balance 30 or 60 days prior to the first date of the reservation (but I always paid prior to that as a show of good faith).

Only one owner asked me to sign a contract.

 

[RobDoc]

YOu will likely find as many rental policies as there are members who rent. ABove all, make sure you are comfortable with any terms before you agree to them. In some cases, the renter may have concerns that will direct the final arrangement.

As for a contract, it does not need to be anything fancy- just a basic description of the parties involved, the resort, dates, room type and any payment and cancellation expectations, plus a direction that the renter agrees to abide by all resort and DVC policies and rules regarding the stay.

Members should be aware of penalty dates (30 days before arrival, banking limitations, etc.) before entering into any agreement (I'm aware of one member who made a reservation for a renter within 30 days and never received payment ... and never cancelled because they still expected payment would come. They lost their points and were never paid.)

Renters should also be aware of any cancellation policy (many members will treat the reservation as if it's "owned" by the renter- and will assist with a re-rental, but no refund of any monies if the renter cancels.)

There are no uniform "rules" for renting- each side of the transaction just needs to respect the needs of the other and not agree to any terms they are uncomfortable with.

 

[Granny]

Doc...I think you make some very good points. Are there any boilerplate, simple rental contracts out there that people have found to work well?

 

[RobDoc]

I'm not sure what you might mean by "... that people have found to work well" - as I'm not aware of anyone who has actually sued over a disagreement with a DVC rental (at least thru our Rent/Trade Board). Regardless what is used the real test would most likley be decided by a judge anyway. That's why I'd suggest that nothing fancy is necessary. DVC mentions such an agreement in our documents and then goes on to add that in the abscence of such a document renters agree to abide by all resort and DVC rules.

I think it would be a good project for us here to post what we might think to be effective rental agreements and let our usual "discussion" add-to, delete or rephrase that document into something useful for others. I have an outline that I created awhile back that I'll try to dig out and post - but would invite others to do the same.

 

[Granny]

I'm not sure what you might mean by "... that people have found to work well" - as I'm not aware of anyone who has actually sued over a disagreement with a DVC rental (at least thru our Rent/Trade Board). Regardless what is used the real test would most likley be decided by a judge anyway. That's why I'd suggest that nothing fancy is necessary. DVC mentions such an agreement in our documents and then goes on to add that in the abscence of such a document renters agree to abide by all resort and DVC rules.

I think it would be a good project for us here to post what we might think to be effective rental agreements and let our usual "discussion" add-to, delete or rephrase that document into something useful for others. I have an outline that I created awhile back that I'll try to dig out and post - but would invite others to do the same.

Doc...when I said "work well", I just meant something simple enough that was easily understood without both sides hiring a bank of lawyers!!

I like your suggestion about posting effective rental agreements. I'll go ahead and start that thread.

 

[vascubaguy]

I posted in the other thread a sample contract that another member uses.

Went a little something like this:

"Vacation Points Usage Contract
NAME (DVC member) certifies that he has and will maintain, in good standing, an ownership interest in the Disney Vacation Club, throughout this contract period, sufficient to carry out the terms of this contract. DVC member desires to make this reservation in the tenant's name and benefit in exchange for payment.
NAME (tenant) certifies desire to purchase (rent) this reservation and has the ability to make full payment.
This contract is entered into, in good faith, between DVC member and tenant for the express purpose of renting reserved lodging as set forth below.

Names in Tenant's Party:
NAMES

Unit Description and Location: (Example)
2 Bedroom Preferred View at Boardwalk Villas, Walt Disney World, Florida.
Room requests made to DVC Member Services:
Non-smoking, Epcot View. DVC member makes no guarantee with regards to availability of room requests.

Duration and Dates: (Example)
11 nights- Arrival: January 9, 2005; Departure through January 20, 2005.

Calculations: (Example)
390 points at $10 /point, for a total payment of $3,900.

Payments / Deposits: (Example)
50% of the payment ($1,950) is due when tenant receives Disney confirmation letter.
Full Balance ($1,950) is due by October 9, 2005 via www.paypal.com, money order, cashier's check or personal check. . DVC member cannot accept credit card payment via www.paypal.com. Any form of payment returned for “insufficient funds” may initiate automatic cancellation of tenant’s reservations and full retention, by DVC member, of any partial payments received up to that date.
If payment is made by personal check, check must be received by October 2, 2005.


Cancellation and Refunds:
Tenant will be held to the same terms as a DVC member (i.e. cancellation on the day of arrival will forfeit the rented points and reservation to Disney... cancellation within the last 30 days will put the points into a holding account where the tenant will have 60 days to attempt to reschedule the reservation or forfeit the points to Disney... cancellation at 31 days or greater from the reservation's original date of arrival, allows the tenant to attempt to reschedule the reservation, pending room availability, with the points, anytime prior to their expiration on Feb. 28th , 2005. Upon signing the rental agreement, the rented points (390) become the tenant’s until they expire the following February 28th, 2005.

Tenant may request, and DVC member will attempt to make any reservation changes as directed by the tenant, within the limitations noted above. Tenant should be aware that this might not be possible because of limited room availability.

DVC member will not make any changes to the reservation without first being directed to do so by the tenant.

Funds received for the purpose of renting the DVC points are non-refundable (this includes partial payments). No attempt will be made by the DVC member to "re-rent" the points to a third party.

Force Majeure:
In the case of a catastrophic event beyond the control of the Disney Vacation Club to fulfill the essentials of this contract, to provide the specified lodging during the specified times, both parties agree to equally share the loss of non-recoverable points.

Tenant acknowledges receipt of confirmed reservations in tenant's name. _______(Tenant’s initials)
Tenant is responsible for all charges to the room associated with this stay. _______(Tenant’s initials)

Tenant agrees to follow the DVC rules and accepts responsibility and liability for the use of DVC property, including no pets. Tenant agrees to indemnify and hold harmless DVC member due to any actions taken by tenant, tenant's named party and/or tenant's guests during the execution of this reservation. ________(Tenant’s initials)

Tenant and DVC Member hereby agree to the terms of this contract.

DVC Member
NAME AND ADDRESS

Tenant
NAME AND ADDRESS

signed:_____________________________________ signed:_________________________________
date:_______________________________________ date:___________________________________"