Dues and credit on sold contract

[Cyberc1978]

Hi

I have sold my BLT contract. I have used some of the 2021 points and as part of the contract I'm paying dues on the used points.

So far so good.

In the contract it says that I need to pay approx $500 in dues for using some of the 2021 points and there are zero points available in 2020 so I should pay 2020 dues and get any credit provided. The amount that I need to pay was an approx when the contract was originally signed. However now that we have gotten a credit on the dues because of the closure how do I go about collecting it as it seems that the credit is being subtracted from the amount due.

In total I see a credit and the actual property tax paid. The total amount is $175.

Can I call member account and ask that any credit and the difference between actual property tax and the estimated tax is applied to my other contracts instead of the one that I sold? Just want to ensure that the sold contract is left without credits of any kind and any credit I do get is applied to my other contracts or will this happen automatically?

regards

 

[CarolMN]

Doubt very much whether MS or MA can or will help. You receive only whatever the contract said.

Any credits for 2020 will be listed on the 2021 statements that the new owner is responsible and reduce the amount of 2021 dues owed. Your "entitlement" from the operations credit and overestimation of the taxes was transferred to the new owner at closing.

If the contract says you are to receive anything based on the actual dues & credits, the new owner will owe it to you. You might try contacting the broker or title company.

IANAL.

 

[DebbieB]

Are you already closed?

 

[Cyberc1978]

Are you already closed?

No not yet. However I expect to close either Monday or Tuesday next week.

why?

 

[Cyberc1978]

Doubt very much whether MS or MA can or will help. You receive only whatever the contract said.

Any credits for 2020 will be listed on the 2021 statements that the new owner is responsible and reduce the amount of 2021 dues owed. Your "entitlement" from the operations credit and overestimation of the taxes was transferred to the new owner at closing.

If the contract says you are to receive anything based on the actual dues & credits, the new owner will owe it to you. You might try contacting the broker or title company.

IANAL.

Contact just says I need to pay the dues on the used points.

Since it’s still my contract why can’t I just call MA and ask that the credit be applied to my other contracts so the sold contract is just having the dues listed and nothing else?

regards

 

[DebbieB]

No not yet. However I expect to close either Monday or Tuesday next week.

why?

i would contact your agent or closing company. I believe the 2021 dues are due as part of closing, they may need to recalculate.

 

[Cyberc1978]

i would contact your agent or closing company. I believe the 2021 dues are due as part of closing, they may need to recalculate.

Thanks I’ll try that.

 

[Sandisw]

The thing is that the credit for 2020 is being applied against the 2021 dues,

So, I don’t think it effects what you owe for 2021 points use. Since the new owner is paying the rest of the 2021 dues, they will be given the credit from DVC.

However, since you have not closed, you can contact the broker and see if there is something the buyer is willing to reimburse you for the credit...use the credit to reduce the $500?

Basically, you are asking to alter the contract and only the buyer can agree to that.

 

[Cyberc1978]

The thing is that the credit for 2020 is being applied against the 2021 dues,

So, I don’t think it effects what you owe for 2021 points use. Since the new owner is paying the rest of the 2021 dues, they will be given the credit from DVC.

However, since you have not closed, you can contact the broker and see if there is something the buyer is willing to reimburse you for the credit...use the credit to reduce the $500?

Basically, you are asking to alter the contract and only the buyer can agree to that.

Even with the credit being applied against the 2021 dues, buyers still agreed to pay the full 2021 dues(on remaining points).

I assume the situation would be sort of the same if you buy a contract in 2021 and agree that you pay the 2021 dues then you don’t get the credit too.

I have written to both the broker and title company and are waiting for their answer.

however I will try call MA Monday and see if they can move the credit to another one of my contracts or if there are any other option for me to keep the credit. As I see it I’m entitled to it not the buyer as I paid the 2020 dues and had ownership during 2020. Buyer will have ownership from 2021 and forward.

 

[Sandisw]

Even with the credit being applied against the 2021 dues, buyers still agreed to pay the full 2021 dues(on remaining points).

I assume the situation would be sort of the same if you buy a contract in 2021 and agree that you pay the 2021 dues then you don’t get the credit too.

I have written to both the broker and title company and are waiting for their answer.

however I will try call MA Monday and see if they can move the credit to another one of my contracts or if there are any other option for me to keep the credit. As I see it I’m entitled to it not the buyer as I paid the 2020 dues and had ownership during 2020. Buyer will have ownership from 2021 and forward.

I agree your case is different right now as you are still owner. But, I sold my BWV in June, and paid all 2020 dues and will not be receiving the credit.

Yes, a person buying in 2021 would be reimbursing the seller for the 2021 dues, but again, the owner will be selling after they have paid and gotten the credit.

If you go to your account now, it will show the credit toward the 2021 dues...maybe all that needs to happen is that the credit that is there is given to you toward the $500 you owe?

I still think it is something you will have to negotiate with the buyer, but definitely keep us posted as to what DVC says.

 

[Cyberc1978]

I have spoken to MA today and as @Sandisw and @CarolMN mentioned the credit follows the contract, and there was nothing they could do.

However after writing to my broker, which then again reach out to the title company. The title company informed us that the credit will be given by the buyer to the seller as a credit on the settlement statement.

So all in all everything turned out as it should.

I assume a lot of contracts face this issue, I wonder if all will have the same ending as I will have or if the buyer end up with the credit?

 

[Sandisw]

I have spoken to MA today and as @Sandisw and @CarolMN mentioned the credit follows the contract, and there was nothing they could do.

However after writing to my broker, which then again reach out to the title company. The title company informed us that the credit will be given by the buyer to the seller as a credit on the settlement statement.

So all in all everything turned out as it should.

I assume a lot of contracts face this issue, I wonder if all will have the same ending as I will have or if the buyer end up with the credit?

So happy it worked out and in a way that kept it clean. I wonder if the title companies will be on notice for these next few weeks,

Honestly, once we get to 2021 dues are paid, it may become a non issue.

 

[CarolMN]

However after writing to my broker, which then again reach out to the title company. The title company informed us that the credit will be given by the buyer to the seller as a credit on the settlement statement.

Glad it will work out for you. IMO, it only will because you haven't closed yet, the contract provided that you be reimbursed and the credits are known.

 

[Leight19]

Bit off topic but in case anyone wonders what Disney does for themselves I bought direct this year and the credit to 2021 was prorated to when I purchased. So when Disney is the seller they are making sure they get their portion of credit back.

 

[Sandisw]

Bit off topic but in case anyone wonders what Disney does for themselves I bought direct this year and the credit to 2021 was prorated to when I purchased. So when Disney is the seller they are making sure they get their portion of credit back.

Disney has always charged dues this way....prorated from date of purchase...so it makes sense they take the credit the same way.

It is one of the nuances of resale that people debate. Since dues are based on calendar year...which is why Disney does it that..some of us believe buyers should pay based on that and use that thinking when we buy.,,,others feel it’s based on if getting points and pay based that way, which is the stance many brokers take.

Even as a seller, I have never asked for dues reimbursement for the full year if I wasn’t selling early in it.

 

[zavandor]

Bit off topic but in case anyone wonders what Disney does for themselves I bought direct this year and the credit to 2021 was prorated to when I purchased. So when Disney is the seller they are making sure they get their portion of credit back.

That's a very good point.
DVC currently handles MF reimbursement in a different way. If they sell a contract they keep as much as they can, if someone else sells a contract, the buyer gets the full refund.
I think all new buyers have some basis to contact DVC and demand all contracts are handled in the same way and they get the full refund.

 

[Sandisw]

That's a very good point.
DVC currently handles MF reimbursement in a different way. If they sell a contract they keep as much as they can, if someone else sells a contract, the buyer gets the full refund.
I think all new buyers have some basis to contact DVC and demand all contracts are handled in the same way and they get the full refund.

People who bought direct in 2020 did not pay a full years of dues. They paid from the date they bought so the credit is being issued the same way.

So, if someone bought direct on August 1st, they only paid 5 months of dues. DVD paid the rest so what is happening is they are indeed getting the correct share.

Resale buyers are getting the entire credit, because they are current owner and DVCM deals only with them now.