Timing of Selling Contract

[DisneyStarWisher]

We are thinking of selling a contract with a June UY. We plan to pay all the dues for 2024 in January. All the 2024 points will be used and trips will be finished by next October. When would be the best time to sell it? I guess it will be considered a stripped contract if we sell it at the end of 2024 and worry that it will affect the price, but if I sell it in 2025, won't I have to pay 2025 dues? To make it more complicated, we want to buy a resale contract and would need 2025 points on it. We are planning on buying something next year, so I assume we will pay 2025 dues. I just want to avoid having to pay 2025 dues on both contracts. Any help in understanding the best way to time selling and purchasing would be appreciated!

 

[thanxfornoticin]

You should check with a reseller/broker who does this. But seems to me you'd advertise the sale perhaps next summer with the notation that you cannot close the sale until after 10/XX/2024, when you're done with your final vacation using the points. We purchased in the past based on a delayed close date. Then you have a chance at selling it before the end of the year. Good luck with your sale/purchase!

 

[Sandisw]

I think could certainly list it with 6 months or so of delayed closing. So, maybe March? I have bought and sold a few wth up to 4 months of a delayed closing date. Some like that they can lock it in and don’t need to come up with the funds for 6 months.

 

[FFMickey]

Yes, I would list in summer 2024 with an anticipated closing date after your last trip in October. That way you can close to pick up the resale contract with 2025 points. You would be looking at listings in 2024 to find one with 2025 points.

 

[DisneyStarWisher]

I am reviving this thread because I am close to listing my contract. I have another question though. As I said previously, all 2024 trips will be completed by the beginning of October. There are two reservations for the first full week of October, one for my DH and myself (HHI) and one for a friend and her family (WDW). What if I find a seller who agrees to close say the end of October, but for some reason one of the trips have to be cancelled due to unforeseen circumstances? I realize the 2024 points (and some banked 2023 points) will be returned (and may go into holding depending on when the cancellation happens), but how does that change the agreed-upon contract? This is something I've been thinking about because I like to be prepared for anything that might happen.

 

[Jwaire]

Well since your buyer wasn't expecting to receive the points allocated to that trip, they would end up with extra points in holding or distressed points that weren't part of the original transactions.

I think it would tough to go back and ask them to pay more because you decided to cancel your trip, but I guess you could refuse to close.

 

[Rex1993]

I'm only speaking for myself but when I look at listings I completely disregard any that have existing reservations. I just don't see any point in getting into contract unless the buyer is prepared to close as soon as the contract passes ROFR.

 

[Jwaire]

If you have a June UY and the reservation was booked with 2024 points, those points are still bankable until January 31, 2025.

If you have a June UY and the reservation was booked with banked 2023 points, those points were banked into 2024 use year and would expire at the end of May 2025.

If a combination, it would be a combination of the above.

I would rent the reservation instead of cancelling it, if you're not going. Otherwise, just let the buyer, who waited months to close for you, have the extra points.

 

[Jwaire]

I'm only speaking for myself but when I look at listings I completely disregard any that have existing reservations. I just don't see any point in getting into contract unless the buyer is prepared to close as soon as the contract passes ROFR.

Same, but people do it all the time especially for hard-to-get contracts and use years.

 

[KAT4DISNEY]

I am reviving this thread because I am close to listing my contract. I have another question though. As I said previously, all 2024 trips will be completed by the beginning of October. There are two reservations for the first full week of October, one for my DH and myself (HHI) and one for a friend and her family (WDW). What if I find a seller who agrees to close say the end of October, but for some reason one of the trips have to be cancelled due to unforeseen circumstances? I realize the 2024 points (and some banked 2023 points) will be returned (and may go into holding depending on when the cancellation happens), but how does that change the agreed-upon contract? This is something I've been thinking about because I like to be prepared for anything that might happen.

The points from the cancelled trip would go to the new buyer if you did nothing beyond cancelling. If the reservation were cancelled far enough in advance and used current points it would be reasonable to transfer the points out since they were not part of the agreed upon purchase contract. You also could try and rent the reservation.

 

[DisneyStarWisher]

The points from the cancelled trip would go to the new buyer if you did nothing beyond cancelling. If the reservation were cancelled far enough in advance and used current points it would be reasonable to transfer the points out since they were not part of the agreed upon purchase contract. You also could try and rent the reservation.

So for example, we also have two HHI contracts which we are keeping. Could the returned points be moved into one of those contracts? If so, could banked 23 and current 24 points both be transferred?

 

[CarolMN]

Neither banked nor borrowed points can be transferred.

 

[KAT4DISNEY]

So for example, we also have two HHI contracts which we are keeping. Could the returned points be moved into one of those contracts? If so, could banked 23 and current 24 points both be transferred?

Only the current 24 although once I did have MS allow me to transfer a few banked points for my use in another of my UY's. If your HHI contracts are all in the same membership as the one you are selling then there can't be a transfer. Transfers are between memberships, not contracts.

 

[Sandisw]

I am reviving this thread because I am close to listing my contract. I have another question though. As I said previously, all 2024 trips will be completed by the beginning of October. There are two reservations for the first full week of October, one for my DH and myself (HHI) and one for a friend and her family (WDW). What if I find a seller who agrees to close say the end of October, but for some reason one of the trips have to be cancelled due to unforeseen circumstances? I realize the 2024 points (and some banked 2023 points) will be returned (and may go into holding depending on when the cancellation happens), but how does that change the agreed-upon contract? This is something I've been thinking about because I like to be prepared for anything that might happen.

The buyer simply ends up with the extra points because at that point, you would be well into the process of the sale and contract.

If the other contracts are in a different UY, you could move them, if current UY points.

If all same membership, then no because points are part of a contract within the membership.

As mentioned, another option is to rent it instead

 

[Counting Stars]

I'm only speaking for myself but when I look at listings I completely disregard any that have existing reservations. I just don't see any point in getting into contract unless the buyer is prepared to close as soon as the contract passes ROFR.

This..... I would want a bargain on a contract with contingencies.... Just too many contracts out there to mess with maybe.

 

[Sandisw]

This..... I would want a bargain on a contract with contingencies.... Just too many contracts out there to mess with maybe.

I have bought and sold several delayed closings and it has been a good thing.

When a buyer, it was nice to be able to push off the purchase and my buyers were the same. Having the extra 4 months was nice. It obviously wasn’t for everyone but as the brokers told me, plenty of buyers who see that as a plus.

 

[DisneyStarWisher]

Only the current 24 although once I did have MS allow me to transfer a few banked points for my use in another of my UY's. If your HHI contracts are all in the same membership as the one you are selling then there can't be a transfer. Transfers are between memberships, not contracts.

Yes. I wasn't thinking clearly. My HHI points are in the same membership, so we wouldn't be able to transfer. I'm not so worried about my reservation as it uses only 5 points from the contract I would be selling, but I'm more worried about my friend's reservation because it uses quite a few of those points. I guess the best resolution if a cancellation happens is to rent the reservation. Of course, this is all contingent on IF the contract sells. Thanks for all the information.

I have bought and sold several delayed closings and it has been a good thing.

When a buyer, it was nice to be able to push off the purchase and my buyers were the same. Having the extra 4 months was nice. It obviously wasn’t for everyone but as the brokers told me, plenty of buyers who see that as a plus.

This is encouraging. Thank you.