Maintenance Fees and Banked Points

[rothesay]

I'm new to the DVC, so I apologized ahead of time if this has been answered before.

If I were to buy a contract with banked points for 2017. Example 160 points contract with 0 points for 2016 but 320 banked points for 2017. Would I be paying MF for 160 points or 320 points? And let's assume the listing says 2016 MF is paid by seller.

 

[BillPA]

You have a 160 point contract, with all 2016 points banked, and dues paid, you will have 320 points to use in 2017 UY. It sounds like those banked points have already had their dues paid. You would only need to pay dues on the 2017 points. The 2016 banked points will expire if not used by the end of the 2017 UY. They can not be banked again.

 

[CMNJ]

I'm new to the DVC, so I apologized ahead of time if this has been answered before.

If I were to buy a contract with banked points for 2017. Example 160 points contract with 0 points for 2016 but 320 banked points for 2017. Would I be paying MF for 160 points or 320 points? And let's assume the listing says 2016 MF is paid by seller.

MF are paid by calendar year rather than UY. So dues for 2016 were paid back in Feb 2016 by the current owner unless they were either on a payment plan where they are deducted every month from their bank account (mor they were delinquent. In order to sell Disney required MF for the year to be paid in full prior to the closing/transfer to new owner. So the current owner wpuld have already paid those MF or will have to settle up with Disney prior to closing. Usually once a seller banks the points they do not ask for reimbursement of MF but many sellers do try to have the buyer reimburse for MF if there are current UY points. This is obviously negotiable and it seems (to me at least) that later in the calendar year more owners are not as set on recouping this year's MF.

 

[rothesay]

You have a 160 point contract, with all 2016 points banked, and dues paid, you will have 320 points to use in 2017 UY. It sounds like those banked points have already had their dues paid. You would only need to pay dues on the 2017 points. The 2016 banked points will expire if not used by the end of the 2017 UY. They can not be banked again.

Thanks greatly appreciated.

Using the same example. Let's say once the closing took place and if I were to borrow 130 points from 2017's points balance and transfer it to 2016. So I have 450 points (160 + 160 +130) for 2016, but there was a change of plan, and I end up only using 400 points, would I be able to bank/return the 50 points borrowed from 2017? And when I borrow the 130 points, will MF be also due immediate after borrowing the points, or would they be due in January 2017? Thanks!

 

[CMNJ]

Thanks greatly appreciated.

Using the same example. Let's say if I borrowed 130 points from 2017's points balance and transfer it to 2016. So I have 450 points (160 + 160 +130) for 2016, but there was a change of plan, and I end up only using 400 points, would I be able to bank/return the 50 points borrowed from 2017? And when I borrow the 130 points, will MF be also due immediate after borrowing the points, or would they be due in January 2017? Thanks!

You cannot undo borrowing but you could bank points from the current UY to the next one. I think in your example you meant to say you'd borrow 130 points from 2018 to have 450 to use in 2017 (you said the 2016 points were banked into 2017 in your earlier post) and possibly only need 400. In that example the 130 points borrowed into 2017 (from 2018) and the 160 points banked into 2017 (from 2016) must be used or lost by the end of your 2017 Use Year (not calendar year). However your points from the 2017 UY can be banked into 2018. So if you changed plans at least 31 days out (and not past your banking deadline) you could replace the 50 borrowed points.
MF are paid by the calendar year so they would not be due until 2018 even if the points were used in 2017.

 

[rothesay]

Thank you for the responses, again greatly appreciated!

 

[Dean]

I'm new to the DVC, so I apologized ahead of time if this has been answered before.

If I were to buy a contract with banked points for 2017. Example 160 points contract with 0 points for 2016 but 320 banked points for 2017. Would I be paying MF for 160 points or 320 points? And let's assume the listing says 2016 MF is paid by seller.

Fees are paid by calendar year. So if you bought a Dec UY with no 2016 points there are 2 potential fee issues. You could potentially be reimbursing for the fees paid this past Jan then fees due this coming Jan. In this case the banked points have value but somewhat less than the 2017 points will. In part it depends on what the UY is but no fee reimbursement for this year and you paying the 2017 fees should be roughly break even if the UY is June or before. Just don't be fooled into thinking you're getting free points with the banked points.

 

[codina818]

This is an item which is negotiable. Some sellers take the attitude that if u use the 2016 points, you should pay the MF on them. Others just throw them in. Personally, I would rather pay the MF and keep the points rather than have the seller transfer them out or use them before closing.

You really need to look at the purchase price as a package rather then fixate on one specific portion of it.

 

[Dean]

This is an item which is negotiable. Some sellers take the attitude that if u use the 2016 points, you should pay the MF on them. Others just throw them in. Personally, I would rather pay the MF and keep the points rather than have the seller transfer them out or use them before closing.

You really need to look at the purchase price as a package rather then fixate on one specific portion of it.

I agree but you need to understand where you're starting from and the real costs and benefits to do that. IMO the Maint fees are an area where most overpay on resale. That's one of the reasons that a loaded contract is usually a much better deal than a stripped or even in between one.

 

[codina818]

Unfortunately for most buyers, we have entered the age of the point brokers. Unlike the era when i first started buying, (10-12 years ago) loaded contracts are hard to find simply because anyone can just get rid of extra points without too much work.

In fact, i cant remember seeing any "triple" loaded contracts recently.

Clearly a loaded contract is a much better deal, but they are not available in abundance like they used to be

 

[Dean]

Unfortunately for most buyers, we have entered the age of the point brokers. Unlike the era when i first started buying, (10-12 years ago) loaded contracts are hard to find simply because anyone can just get rid of extra points without too much work.

In fact, i cant remember seeing any "triple" loaded contracts recently.

Clearly a loaded contract is a much better deal, but they are not available in abundance like they used to be

As laid out, this would represent an effective increase in resale prices given that there is not equality from fully loaded to fully stripped contract pricing. I think it's easier for more available home resorts and another reason they can be a better value $$$ wise.