buying a "stripped" resale contract

[snoopy5386]

I am looking into buying a resale contract and I won't really need points until 2010 so "stripped" contracts appeal to me, my question is on a stripped contract, when would I have to start paying MFs? If I buy a contract that gives me no points until 2010, does that mean I don't have to pay MFs until 2010 or do I pay them from day 1 of ownership?
Thanks!

 

[ACDSNY]

On a resale contract all things are negotiable so you can put in whatever you want in your offer to the seller, including how you want to handle MFs and closing costs.

 

[WALTSAGOD]

You get what you bargain for

 

[Grandbuddy]

My question is on a stripped contract, when would I have to start paying MFs? If I buy a contract that gives me no points until 2010, does that mean I don't have to pay MFs until 2010 or do I pay them from day 1 of ownership?
Thanks!

You get what you bargain for

You get what you bargain for, but if you buy a contract now (even if it has no points available to you until 2010), the 2009 MFs will be billed to the owner of the contract in January 2009 - and the owner of the contract will be you. It would be difficult to enforce a contract provision asking the seller to take responsibility for paying those fees, several months after closing. The only way to do it would be to adjust the price you pay for the contract now, to make up for the fact you will have to pay the 2009 fees...and then you could have a tough time making it through ROFR.

 

[snoopy5386]

thanks, this is exactly the info I need to know. We are going to WDW next week, so I am weighing the option of buying now at AKV if I can get my preferred use year and developer pts for the 100 pt deal vs waiting and buying resale sometime next year at BCV, trying to figure out which is a "better" deal.

 

[bnlbebes]

When we recently bought a resale contract, we deducted the estimated cost of upcoming years' maintenance fees for years which we would not be able to use points from the final purchase price. It was fully understood and carried out by our agent and agreed to by the seller. It was a nice discount on the price, but we did end up paying MFs for the years we didn't get to use. So if you don't put away money for this purpose, it still ends up being an expense in the end.

 

[5forDiz]

contract with Use Year & Home Resort that you are interested in and then you can do add-ons directly through Disney. Add-ons are a minimum of 25 points and if I am not mistaken presently if your add-on is 50 points or more there may be an incentive reducing price per point. Also there are no closing fees but if I remember correctly you would need to pay MF's on the add-on for the first year up front.

Even if you purchased a stripped contract once you close and are in the system as a member you can immediately do an add-on directly with Disney and the points from the add-on contract would be available from the get go for you to use.

Also, Disney will give your add-ons same Use Year as your resale contract and you may pick the same Home Resort for any add-ons you may do or you may add-on points at a different DVC resort instead.

 

[CarolA]

I am planning to put a stripped contract up for sale. First points will be 2009. I assume that I will have to pay 2008 dues.

 

[cruiseletters]

I have bought resale twice and have never paid for maintenence fees on points that I was unable to use, having said that don't take it for granted that is a rule, it does need to spelled out. Good luck