Unless a
DVC member is paying monthly, all dues for 2005 points are due at the same time. It doesn't matter what month your use year is. I paid in January for my August and September UY points.
You will have to pay the seller for the dues s/he has already paid on the points. And then again in January 2006 for your December 2006 points
This is not correct and unfortunately how dues apply to Use Years is misunderstood by practically everybody.
Dues apply to the
Calendar Year, not to the
Use Year. They are
pro-rated between use years based on the Use Year month.
If you have a December Use Year,
only 1/12th of the dues apply to the same calendar year.
Example: You pay dues on Jan 1st, 2006 for calendar year 2006. 11/12ths of those dues are for your 2005 points and only 1/12th will be for your 2006 points.
So if you are looking at a contract with a December Use Year, and all 2004 points are available as well as all 2005 points, then you should reimburse
13/12ths of the dues paid by the seller this past January 15th, 2005. (Assuming they paid all the dues for the full calendar year), because that payment covered 2004/2005 use year points.
It works like this: On Jan 15th, 2004 they paid dues which covered 11/12th of their 2003 Use Year, and 1/12th of their 2004 Use Year. On Jan 15th, 2005 they paid dues which covered the remaining 11/12ths of their 2004 Use Year and 1/12th of their 2005 Use Year. On Jan 15th, 2006 you would pay dues which would cover the remaining 11/12ths of your 2005 Use Year, and 1/12th of your dues for your 2006 Use Year.
If the seller wants reimbursement for dues they paid on Jan 15th 2005
AND ALSO for dues they paid on Jan 15th, 2004 (saying that you get use of the 2004 points)
then be careful. That would be
you paying for 11/12th of the dues for their 2003 points which they used themselves. You would be paying too much.
I posted the following in another thread: It might be useful here to repeat it.
When purchasing a resale contract: Negotiable
Payment of Dues. This one is tricky because most people don't understand how dues apply. They are by calendar year, not use year, but there are ways to see who should pay dues on what.
Example: A contract has a August UY, no 2004 points left, and all 2005 points. The original owner paid all the January 2005 maintenance fees. They ask for reimbursement of ALL those fees stating ALL of the 2005 points are still available.
The error is that the fees they paid are partially for their 2004 points and partially for their 2005 points. In this case, 2004 goes from Aug 2004 thru July 2005, and 2005 UY goes Aug 2005 thru July 2006. The dues paid January 2005 cover 7-months of 2004 UY points, and 5-months of 2005 UY points, so the correct reimbursement would be 5/12ths of the annual fee. The new owner will end up paying the remaining 7/12ths of the 2005 points' dues on Jan 15th, 2006.
What many sellers conveniently forget, and that new buyers are not aware of, is that when first purchased from Disney, the buyers paid prorated dues based on how many months were left in the calendar year. In this example, let's assume the original buyer bought from Disney in August, 1998. At that time they paid 5/12ths of the annual dues for their 1998 points. Then in Jan 1999, they paid a full year's dues: But that amount was for 7/12ths of their 1998 dues, and 5/12ths of their 1999 dues. That's how the offset between calendar year dues and Use Year works.
robinb said:
...all dues for 2005 points are due at the same time. It doesn't matter what month your use year is. I paid in January for my August and September UY points.
Incorrect, you have not paid yet for ALL of your August and September 2005 Use Year points.
In January, 2005.....
For your August UY Points: 7/12ths of the dues you paid were for your August 2004 Use Year Points, and 5/12ths of the dues you paid are for your August 2005 points.
For your September UY Points: 8/12ths of the dues you paid were for your September 2004 Use Year Points, and 4/12ths of the dues you paid are for your September 2005 Use Year Points.
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