Maint. Fees on Resale Purchase

[CGregoryJr]

Does Disney charge maintenance fees on points banked into a subsequent use year in addition to the fees paid on those same points during the original use year? I don't think they do, however, I am questioning the verbiage in a resale contract I am reviewing. It states that Buyer will reimburse Seller for prior maint. fees paid by Seller on all points AVAILABLE to Buyer, OTHER than banked points. To me, that is totally illogical. A Buyer MIGHT have the ability to utilize points AVAILABLE depending upon use year, buyer's availability, etc. Banked points, on the other hand, are guaranteed to be available through then end of the subsequent year. Accordingly, it seems to me that, if anything, the Buyer could consider reimbursing Seller for banked points, not "AVAILABLE" points. Unless, of course, the Buyer has to pay such fees again on banked points during the "banked-into" year. What am I missing?

 

[RobDoc]

It sounds as though the seller expects to be reimbursed for his 2002 dues- already paid. If there are any 2002 use year points in the contract- they are asking to be reimbursed for those points, but not any banked points.

Regardless what is paid for maintenance fees for 2002, DVC will send a statement for the 2003 dues which are payable by Jan 15, 2003 and will accrue interest and penalties after Feb 15, 2003. If you reimburse the 2002 dues- you'll pay again in a few weeks. Dues are based on the number of points in the contract- regardless of any banked points.

When DVC sells a contract- the dues are prorated based on the sale date. A purchase today will pay dues on only 19 days- NOT the entire year.

Just make sure you are clear on what is expected before making an offer or include your intentions in your offer. Dues are based on the calendar year- not on the use year.

Good Luck!

 

[WDWguruDH]

You do not pay dues on banked points, those were already paid by the current owner, since they don't get to use them, they want to be reimbursed.
We have bought several resales and general reimbursed the previous owner for the dues paid for any points in the contract. Points rent at $8-10 and dues are $4, thus you are getting a deal. We had a contract where the seller wanted ALL dues from the previous year, but we negotiated it to just the dues that were for the available points - available and banked.
The key here is that it is all open for negotiation, you can counter and say you don't want to pay any, but they may say no - at $4 a point, we thought it was worth it, you have to think yours is worth it.

 

[Dean]

DVC charges dues based on a calendar year basis and not the use year. This means that the dues due in Jan of 2003 will be for the remaining months of the 2002 use year and the first portion of the 2003 use year. Also points in the current use year may be less usable to you than future years points. Most people over pay for dues on resale purchases but you must look at the overall package to decide what is appropriate. IMO, the dues can be a make or break issue when deciding on the value of a resale package.

 

[CGregoryJr]

Dean, point taken on evaluating the entire package versus looking at the deal piecemeal. That said, if a Buyer believes he/she has struck a fair price for the "points", is there any reasonable rationale for not reimbursing Seller for fees on banked points? Isn't such an approach fair irrespective of calendar year or use year in the contract?

 

[ClarabelleCow]

We just closed on a resale, I did not care about the banked points, and basically made my offer and stated that he either use the banked points or throw them in, he did and we did not pay any additional dues on them.

 

[Dean]

Originally posted by CGregoryJr
Dean, point taken on evaluating the entire package versus looking at the deal piecemeal. That said, if a Buyer believes he/she has struck a fair price for the "points", is there any reasonable rationale for not reimbursing Seller for fees on banked points? Isn't such an approach fair irrespective of calendar year or use year in the contract?

A neutral offer on dues would be basically no reimbursement for banked points and from start of use year to the end of the year assuming all current and future use year points are in place. I've bought 3 contracts and paid no dues on any of them and no closing at all on 2 of them. It is however reasonable for the seller to expect the portion suggested above assuming all points are in place. If you are getting banked points, you must decide what they're worth to you.

When dealing with resale agents they are accustomed to the pay the fees and get the week mentality which doesn't translate to DVC so you'll get little help from them in this area. It therefore may be easier to give a little less up front and pay extra on the dues or vice versa.

 

[kem330]

Keep in mind that while the points are available to you , the time frame to use them is shorter than what was available to the seller. Disney prorates the dues from closing date, I think this can be a fair compromise. You don't mention when the use year is. Will you have time to use all the points? Resale agencies are working for the seller and in many cases push for the full reimbursement of all points. Our first contract was resale, we purchased in Feb 2001. Use year was Dec. All Dec 2000 points were available and we paid prorated dues for 2001 from Feb- Dec.