Dues on banked points - resale contract

[Genie+]

Thats why I thought maybe dues from 1st Aug - 31st Dec for the 2024 year......

Yes that was my line of thinking with 4 months. Technically it’s 5 months but I figured if the seller was attached to the idea of being reimbursed dues on banked points, maybe it’s possible to get them to at least rethink to what degree.

They may feel better about accepting partial reimbursement vs all dues paid but $pp dropped by a near equal amount.

And if the contract is a good deal, 4 months instead of 12 months might not be a bad compromise to get it done.

 

[Brian Noble]

I suspect the seller has it in their head that "You are getting the points, you have to pay for them." It might be easier to get them to compromise on something else.

Even though money is fungible (that is part of the definition of "money") lots of people don't see it that way.

 

[DonkeyHoTay]

Looking at this from the sellers perspective - they paid their annual calendar year 2024 dues on all the points, including the ones that came up in August 2024 which they banked. Buyer will get benefit of all those banked points - seems fair to ask for reimbursement of dues for those banked points; does not make sense to me why the banked points dues reimbursement should/would be prorated unless the buyer is only getting a prorated number of banked points?

All that said - agree completely with others that all this is irrelevant - all that matters is the bottom line. If that works, then reimburse whatever all the way up to the point it doesn’t work.

 

[VandVsmama]

Ive recently put in an offer on a contract with Aug UY which has 2024 banked points.

However, the seller wants dues on 2025 points AND 2024 points. They say they are banked and are entitled to that.

Has anyone else ever had this?

Ive got 35 contract and never been asked to pay dues on banked points.

I explained to broker dues are calendar year, not UY, but seller is adamant

It will all sort of depend on how badly the seller wants to sell their contract. I think that you should stick to your guns and be prepared for the seller to say no, and then walk away from the deal. If the seller expected you to pay both the 2024 and 2025 dues, he/she should have stated that in the listing & in the contract that they submitted to you.

However, if you & seller have both signed the sales contract AND that contract doesn't say ANYTHING about the 2024 dues, AND the seller after the fact is now saying that you need to pay him/her the 2024 dues, I wouldn't budge at all and let the seller stew/sit on it.

Because what the seller doesn't realize is that the longer it goes from Aug 2024 into the 2025 calendar year, the less and less likely ANY buyer will be willing to pay him/her for 2024 dues. I mean, sheesh, come on...it's going to be 2025 in a couple of days.

 

[Chili327]

The value of the banked points is significantly less than home resort points, so take into account the total price, & if you can even use the banked points. What's the price per point if you didn't get the banked points? Is it still a good enough deal?

 

[AstroBlasters]

The value of the banked points is significantly less than home resort points, so take into account the total price, & if you can even use the banked points. What's the price per point if you didn't get the banked points? Is it still a good enough deal?

Not necessarily true. Banked points can still be used in a home resort booking window.

 

[xdan0920]

Ive recently put in an offer on a contract with Aug UY which has 2024 banked points.

However, the seller wants dues on 2025 points AND 2024 points. They say they are banked and are entitled to that.

Has anyone else ever had this?

Ive got 35 contract and never been asked to pay dues on banked points.

I explained to broker dues are calendar year, not UY, but seller is adamant

You have 35 contracts?

 

[sndral]

Not necessarily true. Banked points can still be used in a home resort booking window.

In this case it’s an August use year, it’ll take a month or two to get through ROFR, closing, & points loaded into the membership - those banked 2024 points will expire 7/31/25 - no way OP will be able to make a reservation w/in home resort priority because they’ll be w/in the 7 month window by the time they have access to the points.
Banked points have a lower value to me, however, if the seller wanted reimbursement for MFs & was willing to accept a lower price per point to offset that - say for tax reasons - I’d be fine w/ that, but I’d not pay full MFs on points w/ less than 6 or 7 months usability left .

 

[Chili327]

Not necessarily true. Banked points can still be used in a home resort booking window.

Yes, but not so much in this situation. (see below)

You have 35 contracts?

I think they meant they have a contract with 35points.

In this case it’s an August use year, it’ll take a month or two to get through ROFR, closing, & points loaded into the membership - those banked 2024 points will expire 7/31/25 - no way OP will be able to make a reservation w/in home resort priority because they’ll be w/in the 7 month window by the time they have access to the points.
Banked points have a lower value to me, however, if the seller wanted reimbursement for MFs & was willing to accept a lower price per point to offset that - say for tax reasons - I’d be fine w/ that, but I’d not pay full MFs on points w/ less than 6 or 7 months usability left .

Agreed, but now I'm questioning... are they 2023 points banked into 24, or 2024 banked into 25?

 

[CarolynFH]

In this case it’s an August use year, it’ll take a month or two to get through ROFR, closing, & points loaded into the membership - those banked 2024 points will expire 7/31/25

I thought these were 2024 points banked into 2025. If so, they won’t expire until July 31, 2026 (and will be usable only for reservations starting 8/1/2025 or later). If so, I see the seller’s point. And although it doesn’t make sense to me that I’m reimbursing the seller for last year’s utilities, staff salaries, and other expenses, it means the cost to me for those extra points is $8-9 pp (whatever the dues were last year) rather than $20 pp (rental value). OTOH, I’m not buying!

 

[kristenrice]

In this case it’s an August use year, it’ll take a month or two to get through ROFR, closing, & points loaded into the membership - those banked 2024 points will expire 7/31/25 - no way OP will be able to make a reservation w/in home resort priority because they’ll be w/in the 7 month window by the time they have access to the points.
Banked points have a lower value to me, however, if the seller wanted reimbursement for MFs & was willing to accept a lower price per point to offset that - say for tax reasons - I’d be fine w/ that, but I’d not pay full MFs on points w/ less than 6 or 7 months usability left .

Are they Aug 2024 points that HAVE been banked? Or are they Aug 2023 points that were banked IN to 2024? If they are Aug 2024 points that have been banked, then the OP would have a full year to use them (8/1/2025 - 7/31/2026) and it would seem reasonable for the seller to want some sort of compensation. If they are, in fact, Aug 2023 points that were banked into 2024, then no way would I even consider it reasonable to request compensation as the seller would have a very small window to use them.

 

[Chili327]

If they are Aug 2024 points that have been banked, then the OP would have a full year to use them

Yep, we need more info.

 

[sndral]

Ah, my mistake, 2024 points banked into 2025, makes more sense.

 

[DonkeyHoTay]

You have 35 contracts?

I think they meant they have a contract with 35points.

Nope… they meant they have 35 contracts. @macman123 is in the top 5 on the leaderboard.

 

[Chili327]

Ah, my mistake, 2024 points banked into 2025, makes more sense.

Definitely!

Nope… they meant they have 35 contracts. @macman123 is in the top 5 on the leaderboard.

Wow, that is crazy. lol

 

[macman123]

You have 35 contracts?

I do

But to clarify, this is not a contract with 35 points.

 

[Chili327]

Nope… they meant they have 35 contracts. @macman123 is in the top 5 on the leaderboard.

#2 actually. Life goals!!

 

[VandVsmama]

DVC Resale Market has a filter on their website right now where you can look up resale contracts which have 2024 points, but no 2024 dues.

...just something to consider.

 

[disneylandtour]

In thinking about this—I think it’s the broker’s fault. So a person with one contract who then wants to sell may have no idea as to what is usual and expected. I think nearly all of us here would assume that for a contract that closes in 2025 you wouldn’t pay 2024 MF for banked points, unless that was clear in the listing. Also, nearly all of us here would’ve heavily factored that into the overall offer. So I get that some seller with one contract who no longer goes to Disney might not understand that—but 100% the broker should have.

 

[Chili327]

In thinking about this—I think it’s the broker’s fault. So a person with one contract who then wants to sell may have no idea as to what is usual and expected. I think nearly all of us here would assume that for a contract that closes in 2025 you wouldn’t pay 2024 MF for banked points, unless that was clear in the listing. Also, nearly all of us here would’ve heavily factored that into the overall offer. So I get that some seller with one contract who no longer goes to Disney might not understand that—but 100% the broker should have.

It’s definitely their fault, but they are just sales people that are trying to get the most out of a sale, or even if they weren’t, the seller wants more than it is worth, possibly regardless of what the broker says to them about the value… no?