Annual Dues when buying resale?

[kristenrice]

As I understand it, annual dues are due in January each year, regardless of your contract's UY. If this is correct, how much do you pay in annual dues if you buy a resale with a, say, October UY? If you're receiving the full amount of points on October 1, 2008, are you paying the 2008 dues at that time and then again in January for 2009's dues? I would assume that if the contract is in good standing, the seller would have already paid 2008's dues in January, correct? I would also assume that if it is a "stripped" contract and the points for 2009 have already been borrowed into 2008, that the seller should be "obligated" to pay 2009's dues since they are using the points. I'm so confused!

I'm just trying to figure out EXACTLY how much $$$$ we'd need up front to buy a resale contract. It would be SO much easier to buy direct from Disney, but we only need 100 points (max) since we only plan on vacationing every 2-3 years.

 

[Donald is #1]

OK, I'll try to answer some of your questions. First annual dues (maintanence fees) are done by calendar year not use year. So 2008 dues cover the period from 1/1/08 until 12/31/08.

Now when buying resale, people do various things. Mostly from the posts on the ROFR thread, it appears as if the buyer and seller split the annual dues based upon either how many points from the UY are left or how late in the year it is. When you are buying a resale contract, this is totally negotiable.

Also, not everyone plays all of their dues in January. DVC members have the choice to either pay their dues all at once in January or to pay monthly. So, it is possible that there could still be dues to be paid if the previous owner was paying monthly.

 

[ZekeKelso]

It's negotiable. Other resellers may do things differently, but here is the SOP for the Timeshare Store (at least how they explained it to me)...

If you buy in 2008, you pay the 2008 maintenance fees for any points you get for the 2008 use year. So if the owner borrowed 25% of the 2008 points to take a vacation during their 2007 use year, you would owe the seller 75% of the maintenance fees they paid back in January 2008. This is on top of the listed sale price. Plus other closing costs.

As I said, it's negotiable. You can always for the owner to not charge you anything, or some prorated amount. They may or may not agree. If you've found a good deal, they probably won't. But if you've found the exact right contract with a price that's a bit high, ask.

 

[kristenrice]

Thanks for your quick replies!

DH and I just received the final payment from his parents' estate (sadly, we lost both of them within a year ) and now a DVC membership is a possibility. DH is going big game hunting with his brother as a "tribute" to his dad (an avid hunter) so he told me to take our DD's back to WDW while he's gone. This year is a BIG exception to our normal travel habits. The soonest we'd go back to WDW as a family would be in 2010 so we're in no hurry to get a DVC contract. Right now, it is a matter of what contracts come available and at what price. Since we'd only go every other year at most, and a 1 BR would be big enough, I am looking for a contract that would allow us enough points to stay at the AKV in a 2 BR savanna view for at least 5 weeknights during any time of year except premiere season. That would require 200 points which we could do with a 100 point contract. This way, we can take friends or family along now and when our DD's get older, they could have their own bedroom.

 

[TimeshareStore Jerry]

The approximate annual dues per point for 2008 at each resort are:
Saratoga Springs $4.21
Old Key West $4.56
Animal Kingdom $4.71
Beach Club $4.80
Wilderness Lodge $4.87
Boardwalk $5.04,
Hilton Head $5.16
Vero $6.04.
All include real estate taxes. If a buyer is getting points for the current use year (2008) the buyer will be responsible for the annual dues on those points. The buyer will pay those dues in one lump sum at the time of closing which will cover their annual dues until January 2009.
In 2009 the buyer will have the option of paying the dues in one lump sum or monthly with Disney.
If the buyer is not getting points until the 2009 use year then they would not have any dues until then. A buyer can present an offer regarding the dues and the seller might accept, counter or be firm at the buyer paying the dues on the 2008 points they are getting.
On most resale transactions, who ever receives the current years points pays the fees for the points due at closing.