Ask Seller to Bank Points in DVC Resale

Ask Seller to Bank Points in DVC Resale: Negotiating Point Terms

When purchasing a DVC resale contract, buyers can sometimes negotiate with sellers about banking points from the current use year into the next. Understanding how this negotiation works helps buyers maximize the value they receive from their purchase.

Understanding Point Banking

DVC members can bank unused points from one use year into the following year. These banked points must be used before the end of the banking year or they expire. Banking provides flexibility when you cannot use your full allocation during a particular year. This feature is particularly useful for members who may want to plan a larger vacation in the following year or simply cannot visit a Disney property in the current year.

When sellers have current year points available, they can bank those points before the sale closes. These banked points then transfer to the buyer along with the contract, providing the new owner with points available for immediate use. This can be a major advantage for buyers looking to make the most of their new membership right away.

Why Request Point Banking

Asking the seller to bank points benefits buyers in several ways. First, it ensures you receive usable points with your purchase. Without banking, current year points might expire before you can use them after the lengthy closing process. The closing process for a DVC resale can typically take anywhere from 60 to 90 days, during which time the points may become unusable if not banked.

Banked points are guaranteed to transfer with the contract. Current year points that have not been banked may be at risk if closing takes longer than expected or if the points' banking deadline passes during the transaction. This risk is something that both buyers and sellers should be aware of and address proactively.

When Banking Matters Most

Banking negotiations are most important when significant current year points exist, and the use year banking deadline approaches. If a contract has a substantial number of current year points and the banking window closes soon, those points could be lost without timely banking action.

Contracts purchased mid-use-year often present these situations. The seller may have unbanked points that need attention before closing completes. Addressing this proactively protects your investment in the contract. It's crucial to understand the specific use year associated with the contract and when the banking deadline falls within that year.

How to Request Banking

Include point banking requests in your offer or during negotiations. Specify that you want the seller to bank any current year points before closing. Your broker can include appropriate language in the purchase contract documenting this agreement. Brokers experienced in DVC transactions understand the nuances of these negotiations and can provide valuable guidance.

Be aware that banking requests may affect negotiations. Sellers who must take action to bank points might seek compensation through higher pricing. Balance the value of receiving banked points against any pricing impact. It is essential to weigh the benefits of having additional points available against the potential increase in purchase cost.

Timing Considerations

Banking must occur before Disney's deadline for the specific use year. Once this deadline passes, unbankable points must be used in the current year or lost. Understanding the contract's use year and banking deadline helps you assess whether banking is feasible.

Given typical closing timelines of 60 to 90 days, requests for banking need to account for this duration. If closing will likely occur after the banking deadline, ensuring points are banked before that deadline becomes essential. This foresight can prevent the loss of valuable points and ensure a smooth transition of ownership.

What If the Seller Refuses?

Sellers are not obligated to bank points before selling. Some may decline the request, particularly if banking requires effort on their part or affects their use of points before closing. In such cases, evaluate whether the contract still represents good value.

Consider adjusted pricing if significant points might be lost due to banking constraints. A contract priced for full points but likely to lose some through timing issues may warrant negotiating a lower price to reflect the actual points you will receive. This negotiation can help ensure that the purchase remains a worthwhile investment.

Documentation and Verification

If the seller agrees to bank points, ensure this agreement appears in your purchase contract. Documentation protects your expectation and creates enforceable terms. The estoppel certificate obtained during closing will confirm actual point status including any banked points.

Verify banked point status through official channels before closing. The estoppel from Disney provides definitive information about point allocations, banked points, and their expiration dates. Review this document carefully. It is your assurance that the points you expect to receive are indeed available.

Strategic Point Negotiation

Point banking is just one aspect of negotiating point terms in DVC resales. You might also negotiate which party receives specific point allocations or how pro-rated dues are handled. Understanding all aspects of point negotiation helps you secure the best possible contract terms for your situation.

Work with your broker to address point-related issues appropriate to each specific contract. Their experience with these negotiations helps achieve favorable outcomes while maintaining realistic expectations about what sellers will accept. With careful planning and negotiation, you can maximize the value and enjoyment of your DVC membership.