Is Use Year also the Maint Dues Year?

[AllieV]

Question: If someone has a December UY, do they start paying for their 12/2011 - 12/2012 maint dues in December and finish the following november? Or are they paying for points starting in January that they won't even have until December? I know you can pay all at once or by monthly withdrawal.

I'm asking because I saw a contract for sale that is empty till September of 2012. I'm wondering if I'd be stuck paying maint dues on points I can't use; and if I'd have to start paying maint dues in January for points I won't have until September (unless borrowed).

One more question: If you borrow points from a future year, do you have to pay those maint dues immediately since you're using the points?

 

[erionm]

Dues are paid on a calendar year basis. All dues are due Jan 15 and are considered late if paid after Feb 14.

 

[rpk1951]

paid in January each year regardless of your month. There is a date due, but I do not remember off the top of my head.

 

[CarolMN]

....(snip).......I saw a contract for sale that is empty till September of 2012. I'm wondering if I'd be stuck paying maint dues on points I can't use; and if I'd have to start paying maint dues in January for points I won't have until September (unless borrowed).........

When you buy resale, pretty much everything is negotiable. In the case you mention, if I were to make an offer for that contract, I would specify in my offer that the seller reimburses me for the 2011 dues (if any were unpaid at time of sale and also for the 2012 dues (or at least for 75% of them). I'd estimate the 2012 dues since we won't know what those will be until very late in December, 2011.

Once you close and own the contract, you would be responsible for the dues, which is why you would want the seller to reimburse you for the 2012 dues as well as any remaining for 2011.

Again, this is all negotiable in resale situations, but I agree with you that it doesn't seem right to pay dues on points you never get to use.

 

[Kidanifan08]

If you are buying a Sept UY contract and you get the 2012 points (which you get on 9/1/12), then I would think that most sellers would expect you to pay the 2012 MF's, since you will be the one using the 2012 points. Remember that those MF's are not due until Jan 2012 and if you do the transaction now, you would not pay until then. You should not have any MF's in the purchase contract, unless you are getting some 2011 or earlier points. You can always borrow some of those points into 9/1/11 - 8/31/12 if you have a vacation planned, but then you have fewer points for 9/1/12 - 8/31/13.

Since you are talking about a "stripped" contract, your best approach is to offer a low bid per point and see if they take it. If it has been listed for awhile and is the seller is desperate, you could win. The only resort that seems to risk ROFR for a low-ball bid seems to be BCV.

I don't believe that you have to pay MF's on borrowed points, since the MF's are not set until Jan of the UY.

 

[BirdsOfPreyDave]

I don't believe that you have to pay MF's on borrowed points, since the MF's are not set until Jan of the UY.

You are correct. You pay maintenance fees on the exact number of points on the contract each January 15th, regardless of whether those points have been borrowed and used in the previous year, or banked to the next use year. Banking and borrowing have no impact on when MF are collected.

 

[bumbershoot]

You are correct. You pay maintenance fees on the exact number of points on the contract each January 15th, regardless of whether those points have been borrowed and used in the previous year, or banked to the next use year. Banking and borrowing have no impact on when MF are collected.

Yep.

As of September '11, we'll have used up all our points through...well we borrowed all of our '12 points, so through the end of January of '13...so all next year we'll be paying dues on points we used in '11.

Hmm. Thinking about it that way, I'd almost rather pay double dues this year and nothing next year!

 

[jesschris]

Dues are always paid in Jan.

 

[bumbershoot]

I think it's probably best to say "arrangement for payment of dues must be done in January". Because my dues aren't due in January, I pay on them each month. But I have the opportunity to change the arrangement each year, and that needs to be done in January (either pay them in full then, or keep the arrangement to take it from my bank account each month).