Dues on Banked Points

[Belle & Ariel]

I’m looking at resale contracts. Some have 2022 banked points and some have 2023 points.
Does the buyer typically reimburse for those? I’m guessing this late in the year I will be paying the dues coming due on January but not sure what is the norm with the older points.

 

[D-Trick]

Generally speaking, the seller will ask you to pay the dues for the remaining current UY points still available. Negotiable, of course.

For 2022 points that are banked, it is standard practice to not ask you to pay the dues on those, as those dues were due 22 months ago and that fiscal year long since closed.

 

[aceshigh73]

Sellers can ask for anything, the Buyers can offer anything... Its all up to how the seller views the deal and if they think it will sell for more. Generally speaking, I wouldnt pay for 2022 pts now, and id have a hard time paying for 2023. But in the end, its just a financial transaction... Lower price pts + dues could be more $$ than higher price per pt without.

 

[Sandisw]

Since dues are based on calendar year, I think it’s a tough ask to expect the buyer to pay 2023 dues, even if getting banked 2022 or 2023 points

Dues pay for operation of the resort and while they are calculated based on the share of points ones has, IMO, you should pay for them once you are an owners.

Buying now won’t make you an owners until December…be aware that there is a certain date in. December thst DVD requires the new buyer to pay an estimated amount of the next years dues..in this case 2024…at closing.

Everything is, of course, negotiatable.

 

[Cfabar1]

Similarly, I think there is some grey area with stripped contracts because of the calendar year discrepancy.

For example, I recently bid on a contract that was stripped with a December use year. It made little sense to me that I should pay 2024 annual dues (due in January 2024) for a contract that has no usable points until December of 2024.

However, the seller didn't see it that way, and we didn't end up making a deal.

 

[tom1944]

I paid the dues on

Similarly, I think there is some grey area with stripped contracts because of the calendar year discrepancy.

For example, I recently bid on a contract that was stripped with a December use year. It made little sense to me that I should pay 2024 annual dues (due in January 2024) for a contract that has no usable points until December of 2024.

However, the seller didn't see it that way, and we didn't end up making a deal.

I would take the same position as you

 

[emchen]

I've always seen dues as the responsibility of whoever gets to use the points...and therefore expected sellers to pay for dues associated with the last UY they used. If the seller pays for dues associated with the points that I will use, I saw that as a cherry on top...

Generally speaking, the seller will ask you to pay the dues for the remaining current UY points still available. Negotiable, of course.

For 2022 points that are banked, it is standard practice to not ask you to pay the dues on those, as those dues were due 22 months ago and that fiscal year long since closed.

Since dues are based on calendar year, I think it’s a tough ask to expect the buyer to pay 2023 dues, even if getting banked 2022 or 2023 points

Dues pay for operation of the resort and while they are calculated based on the share of points ones has, IMO, you should pay for them once you are an owners.

Buying now won’t make you an owners until December…be aware that there is a certain date in. December thst DVD requires the new buyer to pay an estimated amount of the next years dues..in this case 2024…at closing.

Everything is, of course, negotiatable.

Similarly, I think there is some grey area with stripped contracts because of the calendar year discrepancy.

For example, I recently bid on a contract that was stripped with a December use year. It made little sense to me that I should pay 2024 annual dues (due in January 2024) for a contract that has no usable points until December of 2024.

However, the seller didn't see it that way, and we didn't end up making a deal.

I paid the dues on

I would take the same position as you

But I guess I am in the minority. It seems you guys all see it as, the responsibility of whoever the contract-owner is at the time dues are owed. Interesting.

 

[Jwaire]

With banked points, they will build the dues paid for those points into the resale price. That's why double point contracts are priced higher. You should owe no dues on banked points.

As for a December use year contract, I don't think it's unreasonable for a seller to ask for 2024 dues whether or not they paid them in January simply because the buyer will get to access to them for the full term beginning December of 2024.

The January deadline is irrelevant to me. Many sellers are likely taking advantage of the monthly payment feature anyway.

Everything is negotiable, of course. So, good luck!

 

[tom1944]

I've always seen dues as the responsibility of whoever gets to use the points...and therefore expected sellers to pay for dues associated with the last UY they used. If the seller pays for dues associated with the points that I will use, I saw that as a cherry on top...








But I guess I am in the minority. It seems you guys all see it as, the responsibility of whoever the contract-owner is at the time dues are owed. Interesting.

I reimbursed on dues for a contract I purchased in February.
I just thought having to pay for a December closing was to close to the next dues deadline.