Annual fees question??

[spaceranger1217]

Hi! I am looking at the resale market but am a bit confused about annual fees.

If there are currently no points available...points coming in on Dec.2014...should there be annual fees due to be paid by purchaser???

I thought fees are due every Jan. so then would I be paying dues on points I didnt use?

your help would be greatly appreciated!!!

 

[supersnoop]

Everything is negotiable.

Annual dues are paid by the calendar year, even though use year varies. If there are points coming in a 2014 use year, your dvc dues will be charged in January 2014. So, if points come in December, you owe dues on this points in January, eleven months prior. So, in the resale market, those dues would be expected from the buyer unless otherwise negotiated.

 

[disneynutz]

Hi! I am looking at the resale market but am a bit confused about annual fees.

If there are currently no points available...points coming in on Dec.2014...should there be annual fees due to be paid by purchaser???

I thought fees are due every Jan. so then would I be paying dues on points I didnt use?

your help would be greatly appreciated!!!

You are correct, the seller is looking for a bonus. You can make any offer your want including having the seller pay the dues.

Bill

 

[LisaS]

Here is how Disney would do it if you purchased directly from them. If your first points will be the Dec 2014 points, Disney would charge you one month's worth of dues at the 2014 dues rate. Dues are paid on a calendar year basis. With a Dec UY, the dues paid in 2014 covered the last 11 months of the Dec 2013 UY and the first month of the Dec 2014 UY. Therefore, if you get no 2013 UY points and all 2014 UY points, you would owe one month of dues for 2014 and all dues going forward. You would pay full dues in Jan 2015 and those would cover the last 11 months of your Dec 2014 UY and the first month of your Dec 2015 UY and so on through the end of the contract.

Having said that, brokers either don't understand this or find it too complicated to explain to clients. They usually take the position "whoever gets the points pays the dues" but that is not correct and would be particularly unfair to someone purchasing a Dec UY who is getting no current-UY points.