Ask Seller to Bank Points in DVC Resale

Understanding Point Banking in DVC Resale Transactions

When you're purchasing a DVC contract through the resale market, timing can make a significant difference in the value you receive. If your closing date falls near the banking deadline for the current use year, requesting that the seller bank any unused points becomes an important consideration. This simple step can protect points that would otherwise expire before you take ownership of the contract.

Point banking is a standard DVC feature, but it requires action from the current owner. Since the resale process typically takes 60-90 days from contract execution to closing, points that seem safe at the time of your offer might be at risk by the time you actually own the contract.

How Point Banking Works in DVC

Banking allows DVC members to move unused points from their current use year into the next use year. Once banked, these points remain valid for use through the following use year, but they can't be banked again. This gives you additional time to plan and book your Disney vacations without losing valuable points.

Each use year has a specific banking deadline, typically around eight months before the use year ends. For example, if you own a February use year contract, your banking deadline would fall around June of the previous year. The exact dates vary by use year, so it's important to verify the specific deadline for any contract you're considering.

Banking can only be done by the current owner of record. Once you complete the resale purchase, you can't go back and bank points that weren't banked during the previous ownership. This is why requesting banking during the resale process becomes so critical for protecting point value.

When to Request Point Banking

The timing of your purchase relative to the banking deadline determines whether this request makes sense. If you're purchasing a contract in the months leading up to the banking deadline, and the seller has unused points from the current use year, asking them to bank those points protects your investment.

Consider a scenario where you're purchasing an August use year contract in February. The banking deadline for that use year would typically fall around December of the previous year. If the seller didn't bank their points before that deadline, and those points are still unused, they'll expire at the end of July unless you can use them quickly after closing.

However, if you're purchasing well after the banking deadline has passed, this request becomes moot. Points from the previous use year that weren't banked on time will expire regardless of any agreement between you and the seller.

Making the Banking Request

The most effective approach is to address point banking during the initial negotiation phase. When you submit your offer, you can include a clause requesting that the seller bank any unused points from the current use year if the banking deadline hasn't passed.

Your purchase agreement should specify this requirement clearly. A typical clause might state that the seller agrees to bank all available points from the current use year prior to the banking deadline, provided the deadline hasn't already passed at the time of contract execution.

Keep in mind that banking isn't automatic, and sellers aren't legally required to accommodate this request. However, most sellers understand that banking points adds value to their contract and makes it more attractive to buyers. It's often in their interest to agree to this request, especially in a competitive market.

Verifying Banking Deadlines and Use Years

Before making any banking requests, you need to understand the specific use year and banking deadline for the contract you're considering. This information should be available in the listing details, but you can also verify it through the estoppel certificate once you're under contract.

DVC use years begin on different months depending on when the resort opened and when the original owner purchased. Common use years include February, March, April, June, August, September, October, and December. Each has its own banking deadline that falls several months before the use year ends.

The estoppel certificate will show you the exact banking deadline, how many points are currently available, and whether any points have already been banked from previous years. This document provides the definitive information you need to assess the value of any banking request.

Potential Complications and Limitations

While banking is generally straightforward, there are some situations where it might not be possible or practical. If the seller has already booked reservations using their current year points, those points can't be banked because they're committed to existing reservations.

Additionally, some sellers might be reluctant to bank points if they're uncertain about the closing timeline. Banking requires action several months before the use year ends, but resale transactions can sometimes experience delays. A seller might prefer to keep their options open rather than commit to banking points for a transaction that might not close on schedule.

There's also the matter of borrowed points to consider. If the seller has borrowed points from the next use year to book current reservations, banking becomes more complicated. Borrowed points must be "repaid" from the current use year's allocation before any remaining points can be banked.

Banking vs. Other Point Preservation Options

Banking isn't the only way to preserve point value in a resale transaction. Some sellers might prefer to book reservations with their unused points and then transfer those reservations to the buyer. This approach can work well if the reservations align with your vacation plans, but it's less flexible than receiving banked points.

Another option is for the seller to rent out their unused points through Disney's rental program or third-party rental companies. While this doesn't preserve the points for your use, it can offset some of the contract's purchase price if the seller passes the rental income to you as a credit.

However, banking remains the most straightforward approach because it simply moves the points forward for your use without any complicated arrangements or restrictions on how you can use them.

Impact on Contract Value

Contracts with banked points or the promise of banking typically command higher prices in the resale market. Buyers recognize the added value of having extra points available in their first year of ownership, especially since it provides more flexibility for planning initial Disney vacations.

When evaluating offers on contracts, sellers often consider not just the purchase price but also requests like banking that affect the overall value proposition. A slightly lower offer that includes a banking request might be more attractive than a higher offer without that protection.

From your perspective as a buyer, paying a modest premium for a contract where the seller agrees to bank points can be worthwhile if it prevents point expiration. The cost per point for banked points is often much lower than purchasing additional points through Disney's direct sales.

Working with Your Resale Broker

An experienced DVC resale broker can help you identify when banking requests make sense and how to structure them effectively. We've helped hundreds of families navigate these decisions and understand which contracts offer the best point preservation opportunities.

When you work with DVCSales.com, we'll review the use year and banking deadline for any contract you're considering. If banking makes sense for your situation, we'll help you structure your offer to include appropriate banking language and follow up with the seller to confirm compliance.

We can also help you evaluate whether a contract with banking potential is worth a higher price compared to similar contracts where banking isn't available. Every situation is different, and having experienced guidance can help you make the decision that's right for your family's vacation plans and budget.

The key is understanding that point banking in resale transactions isn't just about preserving points , it's about maximizing the value of your DVC purchase from day one. When you receive a contract with banked points, you're starting your membership with enhanced flexibility and more vacation options than you'd have with just your first year's allocation.