Closing docs and maintenance fees

[KnightFamily]

We bought a stripped AKL contract that. December use year. No 2017 points but full 2018 points. In our offer we stipulated that because it's stripped that they pay 2017 mf. No problem.

We're going through the contracts documents from the title company and it says we take over 2017 forward. (Which we do because it's a December use year).

Has the 2017 dues already been paid? They would have been paid this past January yes? So next January we will receive a dues statement for 2018 yes? December use years make things tricky to think it out in our heads.

There is no specification in the contract so before we send it back we're just covering our butts. And I'll get a faster answer here than emailing the title company (considering they haven't got back to me about another email...) Thanks!

 

[disneynutz]

Dues are paid for the calendar year, not UY so yes 2017 calendar dues have been paid.

Bill

 

[LisaS]

If the owner pays their dues in full in January, then the 2017 dues have been paid. If the owner is paying monthly by direct debit, only half of the dues have been paid so far. Disney requires that the 2017 dues be paid in full before the contract changes hands. If it was agreed that the seller pays the 2017 dues, whoever does the closing should subtract any amount due from the seller's proceeds and send it to Disney. Check your paperwork and verify that the amount you are paying for this contract is correct: the price/point times the number of points plus any other fees (such as closing costs) that you agreed to pay, but no line item for 2017 dues.

Dues are paid by calendar year. The dues you will pay in Jan 2018 cover the last 11 months of your Dec 2017 UY (Jan-Nov 2018) and the first month of your Dec 2018 UY (Dec 2018). Since you are not getting any 2017 points, technically you should pay only 1/12th of the 2018 dues. The seller should be paying 11/12ths of the 2018 dues since they used all of the 2017 points. Brokers either don't understand this point or don't want to try to explain it to the seller so it's not easy to negotiate this. It's easier to make an offer (price/point) that compensates for the amount of dues you will be asked to pay for 2018 that you should not be paying. You're past the negotiating stage now but it's something to keep in mind for the future.