Empty vs loaded contacts and dues

[perchy]

I asked a similar question in the ROFR thread and got one answer, but I’m curious about others’ experiences.

For a contract with bankable or useable current use year points, do you reimburse the seller the dues for those points or assume, with 2022 dues due right around the corner, that 2021 dues is factored in the cost?

What has been your experience as a seller or buyer? Have you ever negotiated this?

 

[Deb & Bill]

It depends on the seller. If they ask you to reimburse the dues for the available points, you either pay them or find a different contract or negotiate that rate.

 

[Sandisw]

Everything is negotiable but this late in the year, I would not pay any 2021 MFs as a buyer, and I would not ask for them if I was selling.

MFs are based on calendar year, and at this point, by the time one becomes an owner, it’s going to be pretty close to 2022

 

[ldo]

It’s negotiable. Dvc broker told me (as a seller) that usually by sept, most sellers give that years points for free without reimbursement of annual fees. As a buyer who bought in Oct, I did not pay that years fees.
But it should be specified in contract. Don’t assume. I value “Free” points that are usable for 7 months $5-10 and bankable $10-15. I’d subtract for a shipped contact. But some don’t.

 

[sethschroeder]

Everything is a negotiation.

Do the math and figure out for yourself do you want the extra points or not. Additionally if points expires within 12 months (can't be banked) I would treat them as "lost" since by the time you close and get access to the points you might only have 6 months left leaving you with little flexibility to use the points.

Also have an idea in your head how much points are "worth" to you for ones that were already banks and ones that are this year or next year on the contract.

 

[ldo]

Imho a contract with “free” points that are usable gets $5+ more and one that’s stripped (no current points) gets $5+ less.

 

[macman123]

Dues are payable from 1st January. As such if there are 2021 points, then you would need to pay dues on 1st January.

So in that case you should try and avoid that. But its a matter of negotiation between buyer and seller.

 

[RoseGold]

It's in the contract and the listing at better brokers. The board sponsor switches it over at some point in the year, which we are long past. Of course, it's always negotiable, so maybe some contracts don't follow the general pattern. That's true even at the board sponsor. They put in the listing who is responsible for what dues. These points, with "free" dues are the best bargains in DVC.

 

[Adg0428]

I got a good deal IMO, and I’m paying 21 dues assuming I pass ROFR. August use year with 300 points (150 banked from 2020)

 

[Sandisw]

I got a good deal IMO, and I’m paying 21 dues assuming I pass ROFR. August use year with 300 points (150 banked from 2020)

And that is all that matters. If you as a buyer are comfortable and the contract is a good one then it’s a good deal!