A stupid question about MF on a resale contract...

[kerri0616]

Sorry if this is a silly question...I see that most buyers of resale contracts pay the 2010 MF dues as part of the deal. Correct me if I'm wrong, but didn't the owner of the points have to pay the dues back in January of this year? Is Disney getting paid twice for the dues on the points?

Thanks for answering my lame question.

Kerri

 

[wdrl]

Sorry if this is a silly question...I see that most buyers of resale contracts pay the 2010 MF dues as part of the deal. Correct me if I'm wrong, but didn't the owner of the points have to pay the dues back in January of this year? Is Disney getting paid twice for the dues on the points?

Thanks for answering my lame question.

Kerri

Disney is not being paid twice. If a buyer of a resale contract agrees to pay the MFs, then he or she is merely reimbursing the seller for an expense already paid by the seller.

 

[Jason@dvcstore]

Sorry if this is a silly question...I see that most buyers of resale contracts pay the 2010 MF dues as part of the deal. Correct me if I'm wrong, but didn't the owner of the points have to pay the dues back in January of this year? Is Disney getting paid twice for the dues on the points?

Thanks for answering my lame question.

Kerri

In regards to The Timeshare Store, Inc.® the buyers are typically only paying dues on the points they are getting from the 2010 points. For example, if it is a 200 point deed and the buyer is only getting 100 points then they will only be paying dues on the 100 points. If the buyer is not getting any points until 3/1/11, however, then the buyer has no dues for 2010. As wdrl said Disney is not getting paid twice.

Jason

 

[CNPHILLY]

In regards to The Timeshare Store, Inc.® the buyers are typically only paying dues on the points they are getting from the 2010 points. For example, if it is a 200 point deed and the buyer is only getting 100 points then they will only be paying dues on the 100 points. If the buyer is not getting any points until 3/1/11, however, then the buyer has no dues for 2010. As wdrl said Disney is not getting paid twice.

Jason

Great time to point out that everything is negotiable. I just purchased an add-on through TSS and had the seller agree to pay the 2010 MFs. I preferred to offer that instead of offering a lower price for the points. I start paying MFs on the 2011 allotment.

 

[Jason@dvcstore]

Great time to point out that everything is negotiable. I just purchased an add-on through TSS and had the seller agree to pay the 2010 MFs. I preferred to offer that instead of offering a lower price for the points. I start paying MFs on the 2011 allotment.

That is correct. The purchase price is negotiable, closing costs are negotiable and who pays what dues are negotiable. It is a transaction between two parties and at The Timeshare Store, Inc.® we work as a "transaction broker" so we are simply trying to get the two sides to come together.

Jason

 

[kerri0616]

Thanks all. I can see that if a seller has used their 2010 points, then it would make sense NOT to reimburse him/her for those. Like you said...lots of elements to negotiate!

Kerri

 

[adminjedi]

Just like property taxes are prorated by days of ownership on a sale of real property, the MFs are usually prorated by points used by each party. As others have said, this is negotiable.

 

[Dean]

DVC charges dues on a calendar year basis, not specifically for the points themselves. The neutral and appropriate reimbursement for a given purchase depends in part of the points available and when you buy. Even if you get all points for a given year, this and the reduced time to use them often reduce the appropriate reiumbursement of those points. One should include these parameters in their decision making and offer parameters.

 

[Sandisw]

DVC charges dues on a calendar year basis, not specifically for the points themselves. The neutral and appropriate reimbursement for a given purchase depends in part of the points available and when you buy. Even if you get all points for a given year, this and the reduced time to use them often reduce the appropriate reiumbursement of those points. One should include these parameters in their decision making and offer parameters.

That is what I did when I bought and sold my VWL contract. I bought in January (with an Oct UY) and paid all the 2009 dues. I then decided to sell a few months later and buy all in at BLT.

I closed in mid August and had used up some of the points. Since the new owners were only getting the contract for about 4 months, and I had used up some of the points, I chose not to ask for any MF's to be reimbursed.

 

[DebbieB]

You can also negotiate future dues. Say if someone had already borrowed their 2011 points, you can negotiate a reimbursement of 2011 dues be paid to you as the buyer. You would have to pay them as the owner of the points on 1/1/11 but part of the final deal would be an estimate of the 2011 dues would be subtracted from what you pay the seller.

 

[Kid_@_50]

Don't want to hijack this thread but the answer to my first question appears implied in the responses.

When are maintenance fees due and payable?

What are the options for paying maintenance fees?

My assumption is January of each calendar year. Does DVC offer an optional automatic monthly payment plan or escrow plan for their maintenance fees?

 

[Dean]

Don't want to hijack this thread but the answer to my first question appears implied in the responses.

When are maintenance fees due and payable?

What are the options for paying maintenance fees?

My assumption is January of each calendar year. Does DVC offer an optional automatic monthly payment plan or escrow plan for their maintenance fees?

They are due in Jan. The only payment option otherwise is to spread it out over the entire year as a debit to your checking. Can't do it with a CC that way. Not only do you spread it out over the following year if you do monthly, you get free use of their money in monthly increments over that year.

 

[RobDoc]

Don't want to hijack this thread but the answer to my first question appears implied in the responses.

When are maintenance fees due and payable?

What are the options for paying maintenance fees?

My assumption is January of each calendar year. Does DVC offer an optional automatic monthly payment plan or escrow plan for their maintenance fees?

Annual fees are due January 15 each year and are considered late after February 15. They may be paid by credit card.

There is also a monthly payment plan based on a deduction from a checking account where you will pay 1/12 of the total each month with no service or interest charges.