Questions about buying new contract & selling an old - VERY complicated....

[chris1gill]

I'm not sure this even makes sense, so feel free to give your opinions!!! As an overview, we have a 150 point BW contract & a 100 point OKW contract.... Ultimately I'd like 300 points by adding 50 more points... I really want to add on at BW... but that's been a problem....

So, here are my thoughts...

Currently, we have a 100 point OKW contract... We've used the current year's allotment & borrowed next year's (the plan is to use this contract every 3 years & this is the year we're doing it) We have a reservation in December using points from this contract.

I've been looking for a BW add on of 50 points, and I've not been able to find one, and I'm sick of waiting... I was thinking... Could I buy a BW 150 point contract on the resale market & then sell my 100 point OKW contract (I still want to keep my December vacation with those points however)

If I were to sell the OKW & buy a resale BW, could I take points from the new BW 150 point resale & transfer maybe 100 points to the OKW contract to make it more attractive? Because, ultimately the OKW contract will not have more points until September '03

Can I transfer points like that to a new owner or to that contract? If so, what are the rules about doing it? And, would I still be able to keep my December reservation?

Overall, does this make sense?

 

[JudithM]

Have you considered talking to Member Services? You have a lot of questions/concerns. I would ask DVC directly.

 

[CRobin]

I think I understand what you want to do, but I'm doubtful.

First off, if you sell your OKW contract, they will cancel your ressies as a matter of policy.

Secondly, as you know, your contract represents a deeded lease, not just points. I suspect you'd have to convince the lessor, DVD, to allow you to slice it up, and I don't even know if the declaration documents would allow that. In any event, the new "slices" would need to be deeded and registered which could end up costing you some $$$.

I'd give DVD a call and ask them.

 

[WebmasterDoc]

It sounds like your are asking if you can transfer some points from your BWV contract into the OKW contract. Yes, you may do that. Those points would then be part of the OKW contract- they will maintain their BWV home status and will expire at their normal use year, as they may not be banked.

If the contract is sold before your Dec. trip however, any pending reservations will be cancelled. Your only way around that is to wait until after that trip to list the OKW contract.

MS can certainly clarify the issues for you.

Good Luck!

 

[Dean]

You could likely find an add on if you broader your options to say 50-170 points. Buying BW at $60-68 per point plus closing (around $450). If you get a larger contract (120-170) you could then sell your 100 points OKW contract at likely around $55-65 per point plus closing. The buyer may want "compensation" for the points that are missing, an adjustment of $10 per point for those not available next year is reasonable. DVC cannot prevent you selling it but they can buy it back themselves which really doesn't affect you much. You cost to exchange out 100 OKW points for 100 BW points will likely be around $800-1000 out of pocket (closing plus differential in selling and buying) assuming the same points accounting for the BW and OKW contracts. But since you're OKW is dry, your differential may increase by around $1000 more (but you'd have more points). Then you're yearly fees would be around $80 per year more.

Your options as I see them are:

1. Sell OKW and buy BW as you describe - likely the most expensive option.
2. Keep looking for an add on of say 50-70 BW points including through DVC.
3. Buy an add on at another resort (VB, HH, WL, BC or Eagle Pines).
4. Sit where you are and do cash visits to supplement the stays in selected situations. You could rent points from other members, rent DVC from CRO, try other WDW hotels or even stay off property like Universal or other timeshares.
   [/list=1] The cheapest option will be any add on through DVC directly for the 50 or so points you desire. The next cheapest will likely be the cash route for a variety at other resorts on property and off. Actually the cash option could be cheapest depending on your usage habits. If you are paying points for weekends, the cash option will be the cheapest if you substitute cash nights for weekend nights. The most expensive will be to sell and buy back.
   
   Good luck and let us know what happens.

 

[chris1gill]

Thanks everyone I think DOC understood exactly what I was asking though.... I would actually transfer 100 or 150 Boardwalk points to the OKW contract before I sold it... that way it's not "dry" like Dean mentioned (because that's a big hit)....

Since I want my December vacation, I'll have to wait til after December to sell that contract... I'll start looking around for the "right" BW contract... For a new BW contract, I'll be looking for a 150 point contract... That will give us a total of 300 points.

At least I've got the facts... I'll just have to look at the bottom line once I find a contract I would like to buy... I don't really want a 50 point add on except at Boardwalk... I find we are short Boardwalk points by about 50, so I'm just looking at our vacation habits.....

Thanks again!

 

[Dean]

Chris, just remember that once you can only transfer current use year points, not banked or borrowed points. Then the points are not bankable and expire at the end of the use year. I wouldn't tranfer until you actually have a contract in hand.

 

[Dumbo]

Chris,

One other possibility is to check out the DVC Rent/Trade board. You may be able to rent 100 or so OKW points real cheap, maybe for 8 or 9 dollars a point since you already have a Dec. reservation. You can rent points that are about to expire soon, transfer them into your OKW account, call member services to use those points first for your Dec. reservation. Then that will leave points in your OKW account for an easier sell. You would probably see a return on your money from paying for the rented points in your increased price of your OKW contract sell.

Dumbo

 

[drusba]

Slight error above. If you transfer points from the BWV contract to the OKW contract they must be, as mentioned, current points at time of transfer. But once transfered, they can be banked while in the OKW contract although the banking dates applicable to BWV contract apply (the ability to bank transfered points was a change made in August 1999).

Though I can understand why you want only BWV points (that is all I have and proud of it), you risk losing quite a bit by selling OKW just to buy BWV. For example, if you use a broker you have a large fee to pay like $1000 or more. If you don't use a broker you would need to get a title service and probably a lawyer to do the deal. Either way you are going to end up netting much less on your OKW contract then you pay for the BWV contract.

 

[Dean]

Per Member Guidelines dated August 1999 on page 7 number 4:

Transferred vacation points may not be Banked, Borrowed or returned to the Transferring Member.

While DVC gives some latitude to single members with multiple contracts, I do not believe that would apply in the situation noted. Sorry.

 

[drusba]

As to banking transfered points, I was incorrect as to the year. The change took place August 2000. All multi-state disclosure statements since then do provide that you can bank transfered points. I also recall it being announced and discussed on these boards.

 

[Dean]

I hope you're right but don't remember that one. The Fall and Winter 2000 VM doesn't have it listed either. The only thing I can remember that happened about that time was the extension of the holding account reservations from 30 to 60 days.

 

[drusba]

According to the August 2000 revisions to the Multi-Site Public Offering Statement that I am looking at right now, both those changes were made at the same time.

 

[KMarie]

I have a question about the transferring of points discussed here. Are you saying that if you have two contracts, you can transfer points from one to another permanently?

KMarie

 

[drusba]

The transfer we are referring to is your ability to transfer points from one use year to another member -- it is not a transfer of points for all years just the one year. In that sense it is "permanent" because once you do a transfer you cannot take the points back. But it is only for the one use year. If a member has two separate contracts with different use years the situation is the same and a transfer can be made although another member is not involved. You just transfer points from one contract number to another. You cannot permanently transfer all points for all years from one contract to another contract.

 

[chris1gill]

Just wanted to say Thanks Again!! The info here is, as always, EXCELLENT!!!

I'll let you know how it all turns out in the end!!!

 

[KMarie]

Thanks for clarifying that, drusba!

KMarie