help- if I sell contract what happens to existing ressies?

[sz9144]

I have a ressie for a renter, but want to sell my contract. what happens to that reservation if I sell?

 

[Doctor P]

All existing reservations are cancelled when you sell. I believe they get cancelled as soon as the sale is presented for ROFR based on what others have posted.

 

[WebmasterDoc]

During the closing process, Disney will cancel all reservations assigned to the contract. If this will be an issue for you, you'll need to insist on not submitting the offer to DVC until after any reservations you want left intact.

 

[sz9144]

thanks for the info- I called DVC and was able to make a new reservation for the same dates using points from my other resort.

 

[triple7]

Quoted from the TSS website.

"WHY DO SOME LISTINGS SAY “CANNOT CLOSE UNTIL XX/XX/2006”?

If a Member has an outstanding reservation, the sale cannot close until that vacation has been taken or the Seller’s reservation will be cancelled when the deed is transferred to the Buyer. If the vacation is for May 30th -June 6th, then the sale cannot close until June6th but all of the paperwork can be prepared, signed and ready prior to that. On June 6th, the title company will close the sale, transfer title and notify DVC."


It does not indicate that there is an immediate DVC cancellation of an existing reservations when submitted for ROFR. Has anybody had a reservation automatically canceled when a sale was submitted to DVC for ROFR even though the TSS listing showed a "can not close before a certain date" notation?

I'm in that boat right now and would like to hear other members experiences.

Thanks much!

 

[Doctor P]

Just read back through the various threads and you will find numerous examples where people reported that the reservations were cancelled immediately upon presentation of the offer for ROFR to Disney. Waiting until closing to cancel the reservations could create problems since there is a lag in reporting the closing to Disney (remember that unlike a direct sale, DVD is not a party to a resale closing).

 

[Donna]

I recently sold a 50 pt contract and have current ressies for october and my october ressies have not been cancelled by dvc. my closing is listed as being after the vacation takes place. I specifically asked about this before putting on the market. Wouldn't the local friendly resale people tell us this?

 

[triple7]

I talked to a person in Member Admin yesterday about the handling of this situation. She told me that they do not automatically cancel future reservations tied to contracts being offered for ROFR/sale. She said that they will call the member or the broker when they note a future reservation that is scheduled to occur prior to closing. They will recommend that if available, points from another of the members' contracts be substituted for the sale contract points, or the closing be moved out past the dates of the reservation. I told her that my contract stated it could not close until after the date my reservation was completed. She said that this is the proper way to handle it.

The TSS assured me that this situation happens occasionally and they have not had any real problems with it.

 

[Frederic Civish]

I had a situation where I made three reservations. Two were for my family and one was for someone renting points. All of them were made with the same Membership number, but the points were spread over 5 different contracts within that account. Then I decided to ADD my adult kids to two of the contracts, and leave the other contracts as they were, in just the name of my wife and myself. On the day that I was contacted by the Title Company (the same title company that Disney uses for DVC), and informed that my changes were all done and had been submitted to Disney and the State of Florida, I found out that Disney tends to cancel reservations, if you sell the contract. Suddenly, I was in a panic. I hadn't sold the contracts, my wife and I were still owners, but now my kids would be on two of them.

I couldn't afford to lose my reservations since ALL the resorts were now nearly 100% booked out for those dates, and I wouldn't be able to replace them. So, I contacted the DVC member help line (Reservations) and explained my predicament to them. After about 20 minutes passing while the Reservation person talked to her Supervisors, and then talked with the people in Sales and Administration, she gave me the answer I was hoping to receive: First, because my contracts were no longer in the exact same names, my membership account WOULD be split into two. They haven't done this yet, but they will. 2 contracts will be in one account and 3 in the other. But, Second, my reservations would be okay!! Since my wife and I were both still listed as owners or part owners on all the accounts, they would continue to treat these reservations normally. She also told me that IF there were any problems down the road, and if anything popped up once Disney recorded the changes and split the accounts, that ADMIN promised they would contact me to help me shift points around to continue to cover the reservations.

 

[Allison]

Wow. I just noticed how old this one is.

 

[Frederic Civish]

I also recognized that this has been inactive for a long time, but I was recently in the market for more DVC points, and I came across the notices that said things like, "Can close on or after October 19th," and I wondered why they were putting their DVC points up for sale, but then not being able to close. Then I ran across the information about Reservations being cancelled, and it suddenly became very important to me. It is true that perhaps other people won't search for this thread, or need to worry about it, but it worried me, plenty, so I decided to kick in my 2 cents.

 

[Frederic Civish]

Once it hit me that I might have destroyed my reservations, simply by doing something as nice and innocuous as adding my family to the contracts, I literally could not sleep from about 2 AM on, waiting for the DVC Reservation phone line to open. And that is a very rare thing for me. Normally I can sleep anytime, anywhere, for as long as I want!

 

[bumbershoot]

Once it hit me that I might have destroyed my reservations, simply by doing something as nice and innocuous as adding my family to the contracts, I literally could not sleep from about 2 AM on, waiting for the DVC Reservation phone line to open. And that is a very rare thing for me. Normally I can sleep anytime, anywhere, for as long as I want!

Grratuotius family transfer and adding names to deeds aren’t treated the same as selling. It’s too bad your transfer company didn’t tell you that.

And I found out from my transfer company that having the dues on autopay counts as having them paid up, so apparently I won’t even have to send a lump sum during the transfer we are doing.

You had a lot of worry for nothing thing. I’m sorry.

 

[Frederic Civish]

It is true that this ended up not affecting me, and that is great. But it is also something I think EVERYONE should know, especially if they are even THINKING of someday selling their ownership.

 

[Frederic Civish]

Here is a question I just thought of, and I would like to know the answer: If you TRANSFER points from your account to somewhere else (another account of your own, or an account of someone else), but then you sell that contract that you transferred the points from, does that void the points? Does that void any reservation made with the points? If the points continue on, and any reservation made with them is okay, then why don't more people do this?

 

[Bing Showei]

Here is a question I just thought of, and I would like to know the answer: If you TRANSFER points from your account to somewhere else (another account of your own, or an account of someone else), but then you sell that contract that you transferred the points from, does that void the points? Does that void any reservation made with the points? If the points continue on, and any reservation made with them is okay, then why don't more people do this?

Once a transfer is complete, the points are no longer associated with the membership/contract of origin. Selling that contract will have no effect on the points transferred.

Memberships are allowed one transfer in or out per UY, so while a membership may find a recipient for a transfer, unless another membership takes the bulk of the points, they may need to rent to clear the rest.

As a recipient, when you start at looking to transfer a few hundred points, somehow you start justifying an add-on instead, “If I drop $5K in a transfer, maybe I should just put that towards a small add on.” A lot of people who rent don’t own, so they can’t transfer points in. A lot of people who own will only need a stopgap number of points to get them to their next fix, er I mean UY.

 

[kristenrice]

A lot of people who own will only need a stopgap number of points to get them to their next fix, er I mean UY.

We are owners, but my extended family has asked to tag along a few times. Since we all want to stay together, and we only own 100 points, we have to either rent or transfer points to get rooms for the rest of the family. Obviously, we prefer to do a transfer since that way, I can control the reservations, make everyone's DME reservations and, if an emergency comes up, I can cancel and we can try to rebook. If we can't, I still control the points and I could rent them out myself to recoup some of our expenses. As much as I would love to do an add-on, I don't need the extra 150-200 points EVERY year. We've transferred in points three times now and plan to do it again this year for a family trip next fall. After that, I don't know how frequently my immediate family will be travelling so we may be able to get by with banking/borrowing and going less frequently.

 

[Jason@dvcstore]

I talked to a person in Member Admin yesterday about the handling of this situation. She told me that they do not automatically cancel future reservations tied to contracts being offered for ROFR/sale.

Correct regarding Member Admin and pending reservations.

If you are a DVC member selling your property most brokers will ask if you plan on keeping or canceling any of your pending reservations. If you plan on canceling it/them then here at The Timeshare Store, Inc.® we would have you cancel it/them ASAP. If you plan on keeping we would advertise your property with the appropriate closing date so you are able to keep your reservation/s.