Who controls those points being offered for sale?

[DVC Grandpa]

Who has control of points when listed for sale? Does the owner still have the responsibility to bank and can the owner “rent” or use points while they are listed to sell?

 

[Grandbuddy]

Who has control of points when listed for sale? Does the owner still have the responsibility to bank and can the owner “rent” or use points while they are listed to sell?

As I understand it, the owner of a contract retains control of all aspects, until a purchase contract has been submitted for ROFR. Once the contract goes to Disney for estopple, Disney will verify that the points, etc., are correct as listed on the contract to sell. If the owner has used any points in the meantime, the closing agent would receive that information from Disney, and I would suppose the buyer would receive his deposit back from escrow, since the owner would have basically perpetrated a fraud in the contract to sell.

If you think you might run up against banking deadlines, you could make the banking of current year points a condition of your offer. This would need to be done before the submission for ROFR.

 

[RobDoc]

Who has control of points when listed for sale? Does the owner still have the responsibility to bank and can the owner “rent” or use points while they are listed to sell?

The seller does control the points until the contract is sold. Disney has the policy to cancel any reservations under that contract - so if the seller has an existing reservation using points being sold, they would need to complete the reservation before closing or the reservation will be lost.

The seller can bank and/or borrow points in the contract based on normal deadlines and those would be irreversible transactions. If the buyer wants any current points banked, he should request that as part of the offer.

 

[JimMIA]

If I'm not mistaken, the owner has full control of the points until closing, not estoppel.

I know in our resale purchase we got 149 current-year points. The estoppel letter from Disney showed those points still available, and we closed. We were right up against the banking deadline, so as soon as our points got into the account, I tried to bank them. They were already banked, and they had been banked between the date of the estoppel letter and closing. For us, it was no harm - no foul. I think the owner was just covering our back.

However, in a couple of isolated cases, I have heard of discrepancies between the estoppel letter and the points going into the account after closing. Apparently, there had been some kind of transaction after the deal was negotiated, and Disney either missed it in the estoppel process or it occurred between estoppel and closing. I'm not sure what that would be -- a transfer maybe?

I know, in one case, even though the mistake was Disney's, Tom from TTS made the points right from his own personal account.

 

[Grandbuddy]

If I'm not mistaken, the owner has full control of the points until closing, not estoppel.

I know in our resale purchase we got 149 current-year points. The estoppel letter from Disney showed those points still available, and we closed. We were right up against the banking deadline, so as soon as our points got into the account, I tried to bank them. They were already banked, and they had been banked between the date of the estoppel letter and closing. For us, it was no harm - no foul. I think the owner was just covering our back.

However, in a couple of isolated cases, I have heard of discrepancies between the estoppel letter and the points going into the account after closing. Apparently, there had been some kind of transaction after the deal was negotiated, and Disney either missed it in the estoppel process or it occurred between estoppel and closing. I'm not sure what that would be -- a transfer maybe?

I know, in one case, even though the mistake was Disney's, Tom from TTS made the points right from his own personal account.

There are probably occasional foul-ups.