HELP!!! just got contract and am confused!!!

[AlaskaMOM]

We just recieved our contrat for 100 pts at OKW for $76 a pt 2 banked( to be used by 3/31/06) 100 2005 pts and all 2006 pts coming. Question is the contract says "BUYER RESPONSIBLE FOR ANNUAL DUES ON 100 POINTS FOR THE 2005 ALLOCATION YEAR. SELLER TO BE REIMBURSED ANY PREPAID PORTION." is this correct since all the points are there, or should we only be paying the mf for months the 2005 points were recieved (april-dec)

I know it's probably silly to quibble over $95 or so, I guess I don't want to feel like I missed something.

Thank you for any help

 

[DisneyJam]

Not sure about resale, but when we bought ours from Disney we had a prorated amount for the dues which was about 1/2 the year instead of the full year. I guess for resales they can word the contract how they want and it's up to the buyer to determine if that is a fair price.

You do get all the points so it doesn't seem to really hurt you if you have to pay the full dues.

Hope that helps
Joe

 

[AlaskaMOM]

Oh!
I have another question....
The 100 points are bankable until 30 of sept correct?
But what if the closing doesn't happen til Oct, will I only be able to bank a portion of the points. I don't think we will be able to use them by Mar 31 '06.
I know I could probably try to rent or trade, but am a little apprehensive of trying (I am a newbie). any thought on this question as well is certainly appreciated!

 

[bobbiwoz]

Everything about dues is negotiable in a resale. Call your agent if you are unhappy. Dues are due for the year in January, unless the person has the money deducted automatically monthly. We pay on a yearly basis, so we have already paid all of the '05 dues.

If you have an April use year you can bank 100% by Sept. 30th, 50% by Dec. 31, 25% by Jan. 31 and none thereafter. Days of week, and MS hours do affect the actual dates.

If the present owner banks the points, they will remain banked, so that's something to think about, having them do the 100% banking.

Best wishes,
Bobbi

 

[calypso*a*go-go]

If you know for a fact that you won't be able to use the points when the current use year expires, maybe you should have the seller bank the points. As far as MF's, in most of the resales I've seen details on, the buyer pays the MF's if the points are still intact and useable. The smaller contracts are hard to find, so I'd definitely just pay the fees rather than risk losing the contract to someone else.

 

[JimMIA]

When you say "contract," are you talking about the offer contract...or has your offer already been approved, and passed ROFR?

Either way, you're not talking about $95, you're talking about about 100 points X $3.86 = $386.00.

Unless you agree to something different with the seller, the language you see is the default language for most resale contracts.

Of course, EVERYthing is negotiable in a resale, but the normal breakdown is the seller pays the sales commission of 10-12%, plus the $200 transfer fee, plus the ROFR fee, and the buyer pays current year's dues, plus closing costs.

Direct from Disney is a different story. Disney pro-rates dues and pays the closing fee -- of course, they'd charge you $92 per point, too!

With regard to banking, if you are buying an April use year, yes, you will only have until September 30 to bank the points. If you are sure that's what you want to do, have the seller bank all the points for you. If you decide to take a trip prior to April 1, you can borrow only what you need.

Good luck!

 

[JimMIA]

The smaller contracts are hard to find, so I'd definitely just pay the fees rather than risk losing the contract to someone else.

I agree with this.

I can give you all the arguments for negotiating on the dues, but for a small contract at that price, I'd jump at it. As a matter of fact, I might even raise the offer a dollar or two if I wasn't sure I'd clear ROFR. The number to clear ROFR is the most important number for you; if you don't clear it, nothing else about the contract matters.

I haven't been following the ROFRs lately, so I don't know where they are these days.

 

[T.E. Yeary]

Absolutely, CALL YOUR AGENT. They know the details of your contract and the seller information and can go over the contract with you, line by line. We at The Timeshare Store, Inc., want you to be happy with your purchase and to have a full and complete understanding of the terms of your contract.

Tom

 

[Y-ASK]

Either way, you're not talking about $95, you're talking about about 100 points X $3.86 = $386.00.

I think the OP was talking about a pro-rated MF. I don't think they realized that the MF's are due Jan to Jan and doesn't really depend on the use year. They are getting 100% of the 05 points so it's resonable to pay for the entire use year even though part of that use year time has been used up. But it never hurts to make the best offer you can and if it saves you $95 bucks that's great.

Y-ASK

 

[AlaskaMOM]

THANKS for all your input!

We have decided it's a keeper either way, so.....
we're hopefully about to be new owners soon!

 

[JimMIA]

THANKS for all your input!

We have decided it's a keeper either way, so.....
we're hopefully about to be new owners soon!

It definitely IS! Good luck!

 

[T.E. Yeary]

Congratulations!



We really do appreciate your doing business with us!



Tom