Against the rules to sell point transfer at time of selling contract?

[sethschroeder]

Just was thinking I know commercial renting is not allowed. My question is at the time of selling a contract if selling a point transfer is something that would seem to cross the line.

Part of me think it would fall under renting while another part of me thinks it might get a pass since the owner is selling their contract and just happened to split for a 1-2 year portion to sell elsewhere to start.

Not sure what do you think?

 

[CraigInPA]

People have bought and stripped contracts of current year points and then sold them in short order. It's not an unheard of situation. However, you need to transfer those points out before you go through ROFR. Virtually all sale agreements today from brokers state that you are liable for points missing after ROFR is approved. That liability is $25 per point.

I just had this happen to me. When DVC finally put the points into my account, the current year points were short. The seller had to pony up over $1400 for the missing points.

 

[Sandisw]

I transferred points and then sold the contract. Transfers are different from renting reservations so I don’t see an issue with it at all.

 

[DaveNan]

https://www.disboards.com/threads/points-transfer-rules-101-updated-2020.491988/

See rules 10 and 12
10. Club Members are expressly prohibited from receiving compensation for engaging in any Transfer activity.

12. DVC Operator may prohibit a Transfer, not permit to be made (or cancel a reservation already made) with Transferred Home Resort Vacation Points, or suspend or terminate a Club Member's right to Transfer if DVC Operator determine, in its discretion, that the Transfer activity is for commercial purposes."

Selling with transferred points is fine, but the mere fact you stated your intention was to be compensated (sell) for the points you are transferring is against the rules.

But of course it is done all the time....... see the rent/transfer board on DISboards.