Dues question for the gurus.

[jkevinmcg]

If im looking at a dec use year contract meaning no points until Dec 2013, would I be expected to pay the full 2013 dues amount? what is considerd reasonable in this case?

thanks
Kevin

 

[ELMC]

If im looking at a dec use year contract meaning no points until Dec 2013, would I be expected to pay the full 2013 dues amount? what is considerd reasonable in this case?

thanks
Kevin

"Reasonable" is a subjective term that can mean different things to different people. The way maintenance fees work is that you pay in January for that particular calendar year. So in this particular case, 11/12 of the fees paid in January 2013 are for the points you can use during calendar year 2013. With a December UY, these are the 2012 points. Given that, you should really only be paying 1/12 of the 2013 maintenance fees. However...the common practice is to align use year with calendar year and say that if you get the points, you pay the fees. TTS will strongly recommend that your offer contain the provision that you pay the 2013 maintenance fees.

So, knowing how it really works, you need to decide if paying fees on points you didn't get to use is a deal breaker or not. If it doesn't sit well with you, your options are to either reduce your per point offer by the amount of the fees and then agree to pay them, or find another contract. Good luck!

 

[Sandisw]

I bought in August of 2010 with all my Dec 2010 UY points and asked the seller to pay the entire cost of the 2010 dues. Since dues are based on calendar year, I looked at what is left in the calendar to determine my reimbursement. So, the most I was going to pay, going in with offers in August, was 4 months. But, I ended up going a few dollars more in asking price but wanted all dues covered.

There is really no one way...with resale, I think its the total package price that is important and if you re comfortable with that.

Good luck!

 

[jkevinmcg]

Thank you both!

 

[Dean]

If im looking at a dec use year contract meaning no points until Dec 2013, would I be expected to pay the full 2013 dues amount? what is considerd reasonable in this case?

thanks
Kevin

IF you're buying through a traditional broker you'll likely be paying the dues because they usually incorrectly take the stance that "you get the points you pay the dues". However, the dues are calculated on a calendar year basis so the neutral position on dues in this situation would be that you pay 1/12 of the dues that were paid this past Jan and all of the dues coming up next Jan.

 

[Pirate Granny]

All my contracts are December, all came with some current year points and 100% of all the December points. I paid the member fees. I got the price I wanted to pay for points, wasnt gonna haggle about the member fees.

 

[PaxsMom]

I just closed on BCV. They have 72 points remaining. I had seller pay closing and MF on the 72 points.

 

[lorie13]

Dec UY contracts pay their dues in advance, so by the time you receive your points on Dec 1st you have paid all of them or 11 months (if you are on auto withdrawal from Disney).

Asking the seller to pay them is optional, but if you really want the contract pay them. We just recently purchased a Dec UY BWV and we paid the 2013 dues.

 

[LisaS]

Dec UY contracts pay their dues in advance, so by the time you receive your points on Dec 1st you have paid all of them or 11 months (if you are on auto withdrawal from Disney).

That is not correct. For December contract holders, the dues paid in January 2013 covered the last 11 months of the Dec 2012 UY and the first month of the Dec 2013 UY. They pay for the remaining 11/12ths of their 2013 UY in their January dues.

If you bought a Dec UY contract from Disney today with your first points being Dec 2013 points, Disney would charge you only 31 days worth of dues for 2013 to cover Dec 1-31, 2013. Are you getting an entire year's worth of points for only 31 days worth of dues? No, because you pay the rest of the dues on those 2013 points as part of your 2014 dues.

 

[iluvthsgam]

I get the sense that more often than not people on here are of the opinion to "just pay the dues" if you want the contract. This can be negotiated. I put in an offer on a BWV contract and it had about 50 of 150 current 2013 points. My offer did not include me paying any of those dues and had the seller responsible for all 2013 dues. They accepted. Its not open and shut that the buyer should pay the dues for this years points. You should go in looking at total acquisition cost (price + dues + closing) and feel comfortable with that final number.

 

[Minniesgal]

If im looking at a dec use year contract meaning no points until Dec 2013, would I be expected to pay the full 2013 dues amount? what is considerd reasonable in this case?

thanks
Kevin

If you get the 2013 points in my opinion you should pay the dues. If you don't get the 2013 points you shouldn't

 

[jkevinmcg]

Thank you all, for your input. There were no points left in the 12 use year. 200 coming on Dec 1. we couldn't agree or come close to agreeing on the dues so I wasn't going to pay 1168 for points that did not exist. I offered 1/12th but TTS person I was dealing with could not fathom the calendar year vs. the use year concept so I had to walk away.

Kevin

 

[jkevinmcg]

That is not correct. For December contract holders, the dues paid in January 2013 covered the last 11 months of the Dec 2012 UY and the first month of the Dec 2013 UY. They pay for the remaining 11/12ths of their 2013 UY in their January dues.

If you bought a Dec UY contract from Disney today with your first points being Dec 2013 points, Disney would charge you only 31 days worth of dues for 2013 to cover Dec 1-31, 2013. Are you getting an entire year's worth of points for only 31 days worth of dues? No, because you pay the rest of the dues on those 2013 points as part of your 2014 dues.

Thanks Lisa. This is exactly how the system works.

 

[LisaS]

I offered 1/12th but TTS person I was dealing with could not fathom the calendar year vs. the use year concept so I had to walk away.

I like TTS and used them when I purchased my resale contract. Unfortunately, they either don't understand this issue or don't want to have to explain it to the seller. As others have said, it's usually easier to make the equivalent adjustment on your offer (price/point) than to get a broker to support your point of view in reimbursing only a portion of the current calendar year dues.

 

[LisaS]

If you get the 2013 points in my opinion you should pay the dues. If you don't get the 2013 points you shouldn't

I agree but it's important to understand that most (11/12ths) of the dues on those 2013 points is paid as part of the 2014 dues. If the buyer reimbursed the 2013 dues in full, they would be paying for dues on 11/12ths of the 2012 points and in this situation all 2012 points have already been used by the seller.

 

[Missyrose]

If you get the 2013 points in my opinion you should pay the dues. If you don't get the 2013 points you shouldn't

And, in my opinion, it's all negotiable. I've bought two resale contracts, both had previous and current year points and I paid MFs on one of the contracts.

Start out by having the seller pay both closing and MFs in your offer, then see what they counter with (it'll let you see if the PP price or MFs/closing are the more important numbers to them).

 

[zavandor]

That is not correct. For December contract holders, the dues paid in January 2013 covered the last 11 months of the Dec 2012 UY and the first month of the Dec 2013 UY. They pay for the remaining 11/12ths of their 2013 UY in their January dues.

If you bought a Dec UY contract from Disney today with your first points being Dec 2013 points, Disney would charge you only 31 days worth of dues for 2013 to cover Dec 1-31, 2013. Are you getting an entire year's worth of points for only 31 days worth of dues? No, because you pay the rest of the dues on those 2013 points as part of your 2014 dues.

OT question.
I own a December UY contract at SSR. What will happen on December 2053? Will I get 1/12 of my 2053 points or all the points? If dues paid in January 2053 cover mostly the points got in the previous year I should get less point the last year, right?

 

[chalee94]

OT question.
I own a December UY contract at SSR. What will happen on December 2053? Will I get 1/12 of my 2053 points or all the points? If dues paid in January 2053 cover mostly the points got in the previous year I should get less point the last year, right?

No one knows what will happen in the last few years...

 

[ELMC]

If you get the 2013 points in my opinion you should pay the dues. If you don't get the 2013 points you shouldn't

So if you would like the calculations to match up with your belief, someone buying a DEC UY contract that has full 2013 points coming should in fact pay 1/12 of the annual dues. You need to understand that the maintenance fees being paid from January-November of calendar year 2013 are for the 2012 points. So if you buy a DEC UY contract with all 2013 points coming and you pay full maintenance fees, you are actually paying maintenance fees on the 2012 points that the seller used.

 

[jkevinmcg]

So if you would like the calculations to match up with your belief, someone buying a DEC UY contract that has full 2013 points coming should in fact pay 1/12 of the annual dues. You need to understand that the maintenance fees being paid from January-November of calendar year 2013 are for the 2012 points. So if you buy a DEC UY contract with all 2013 points coming and you pay full maintenance fees, you are actually paying maintenance fees on the 2012 points that the seller used.

Yep. If the salesperson would have understood this and explained it as such to the seller, we might have had a deal.