confused about resale mf's

[minnieluvzmickey]

If I bought a resale of 100 points that has 156 points currently available.....it says 56+100 points banked from 2007.....and then 100 points coming in feb. 2009..........how many points would I pay mf on when I close?

 

[Chuck S]

Actually, that is fully negotiable between the buyer and the seller in a resale. All dues have already been paid to Member Services through December 2008. Dues are on a calendar year basis, due in January, not use year. So as far as DVC is concerned you would owe dues on 100 points on January 1, 2009, as it is a 100 point contract.

However, if the seller has the dues debited monthly from their bank account, they would have paid 2008 dues through June, so far. Typically, in a resale, you would probably assume the dues for July 2008 to December 2008. But again, that is negotiable with the seller.

 

[mrdiscranky]

In a typcial sale through TTS, the buyer is responsible for MF on current year points they received. So if you get 100 2008 points and 56 banked points, the buyer would usually be asked to pay the full amount of 2008 MF's to the seller on closing. If the deal really is 100 banked points + 56 current year points, I don't know how TSS would typcially structure the deal.

Of course, either party could ask the other side to pay more. But if you are just looking at TSS listings and figuring out how much you will owe, it's safe to assume a full year of MF if you are getting the current year's points.

 

[RobDoc]

With a purchase thru DVC, maintenance fees would be prorated based on when you purchase. You would get all points from the current Use Year and if purchased on July 1 - you'd owe 1/2 of the annual fees on those points.

With a direct purchase you won't get any banked points (although Developer points have been offered as an incentive at times) and will get your full compliment of points for 2008.

As noted, everything with a resale is negotiable and then needs to pass ROFR.

Good luck with your decision!