Can I include this in my offer?

[Ukhieneman]

Looking at buying a stripped contract. No points until 2015. Can I ask the seller to pay the 2014 MF?

 

[KAT4DISNEY]

Yes. Or at least some allowance for it since it would be unknown exactly what it is.

 

[lovin'fl]

You can say you want to reduce price by X per point since you'll need to pay AD in 2014 on points you won't get to use.

 

[Dean]

Looking at buying a stripped contract. No points until 2015. Can I ask the seller to pay the 2014 MF?

Sure, just look at the total price (fees plus per point). Having such a stripped contract does bring up some issues, namely 2. One that since pending reservations are canceled at the time of transfer, it means this situation often holds up the closing date for months. The other is that even with concessions most people overpay on the fees in this situation. Let me give you an example. Lets say this were an April UY and the seller took the points and went on a cruise that they just finished. For simplicity sake, lets assume 100 points for the sake of discussion. I'll further assume the value of a lost but current point as $10 a point OR $5 a point plus all applicable maint fees. A reminder that Main fees are calendar year not UY. I'll assume fees of $5 for simplicity.

Thus on an April 100 point contract with all points in April 2015 but none until then that contract is worth about $20 pp less than the same contract with all current points IMO. If it had banked 2012 points that add another $5-6 per point depending on how you valued them. Neutral for this contract example, ignoring the separate value of the lost points, would be no fees this year, no fees for Jan, 2014 and only 9 months of the 2015 fees. So somewhere between $11-21 a point is the difference, closer to the higher number in my book. A smaller loaded contract would be a much better deal all else being equal. Sellers are usually unrealistic in the situation of stripped contracts but if you find the right contract it may be worth it for some situations.

 

[Ukhieneman]

Thanks. That was very helpful!!

 

[drusba]

The answer to whether you can have the seller pay the 2015 dues is that you can do an agreement under which you estimate what those dues will be and agree to have that as a deduction to the total sale price either up front or at closing.

What you do not want to do is simply have the seller agree to pay those dues when they become known and due long after closing. You want a closing that results in neither side having any obligations to the other once the closing has happened. You do not want to be in the situation where you may later have to chase after that seller to get him to pay the 2015 dues for which Disney will consider you the liable party and you would have to pay them and seek reimbursement from the seller.