Dues/Use year

[Lizalu]

I'm a little confused about this. What year do the dues paid in Jan cover? If my use year is Aug and dues are due in Jan which year am I paying for, the past or the next? Is there a site I can go to that explains this?

 

[jarestel]

Dues are paid by the calendar year, not use year.

 

[Pa@okw95]

The dues you pay in January are for that year. We just paid our dues this January for the year 2004. Use year and dues have nothing to do with one another. We all pay are dues in January. They be collected over a 12 month period but they are collected in advance for the January year. When you first buy into DVC they may pro-rate them somehow, that I am not sure about.

 

[Lizalu]

Thanks both of you. I wondered because I'm being asked to pay a full year amount and I haven't even closed yet and pobably won't for a month. I'll ask my closing agent. Thanks again.

 

[DebbieB]

If you buy direct from Disney mid year, you pay a pro-rated amount on dues. For example, April 1 would be 9 months to go, so you would pay 75%.

Resales are another matter. That's between you and the seller.

 

[Dean]

As noted, dues are paid for the calendar year. For an August use year, that would be Jan-July (7 months) of the 2003 use year and 5 months of the 2004 use year (for this year). While it's negotiable on a resale (as is all else), this is the neutral position to take and evaluate who should pay which dues. If you get the line "you get the points this year, so you should pay the dues", you know immediately that this person doesn't truly understand what's involved in a resale with DVC. That's understandable with some, but not the ones that deal with DVC routinely. If you signed a contract, it's likely that contract included who pays what dues. If it does and you signed it, you should pay what the contract states, even if it's more than you should have paid otherwise. On a resale, it's not when you close but how many points you are getting. AS a general rules, I'd pay no dues on banked points that will expire in less than 6 months.

Example - August use year 200 points. If you are buying now and closing soon, here's my thoughts. IF you are getting all 2002 points banked to the 2003 use year, all 2003 points and all 2004 points; a fairly nuetral position would be for you to pay half of last years dues plus all of this years. If you had the same scenario except no banked points, I'd pay this years only. If you had only the 2004 points but minimal or no 2003, the MAX you should pay is 5 months of dues.

Of course you would need to look at the overall deal to decide what's truly worthwhile for you and if it's worth holding up the deal over. In many situations, I think this is a make or break issue to determine the reasonableness of a given resale deal.

 

[Dean]

Originally posted by DebbieB
If you buy direct from Disney mid year, you pay a pro-rated amount on dues. For example, April 1 would be 9 months to go, so you would pay 75%.

Resales are another matter. That's between you and the seller.

That's true in most cases. The dues are charged in three possible ways.

1. From the date you sign the papers (not the actual closings date) assuming you get points from that day or before and the building is ready to occupy.
2. From the date the building is available, say 1 July for some SSR buyers.
3. Or from the date the use years starts if you don't get points until then.
   [/list=1] In order of ascending preference. This means that while DVC charges dues on a Calendar year basis, in some cases they are giving you free dues. If you bought SSR in a December use year and the building is open 17 May, you will only pay 7.5 months of dues even though you get points form December 2003.