maintenance fees adjustment

[WDWorld]

Hi,

I'm very confused about the adjustment that should take place when buying a resale.

If I buy now a 150 pts contract at OKW with september use year with 50 pts borrowed, then on september 2002, 100 pts will be put in my account.

What should the adjustment for maintenance fees be ?

150 pts * 3.22 * 4/12
100 pts * 3.22 * 4/12

anything else ??? because I can tell you that every broker seems to have a different way of calculating this.

Thank you... again

 

[Wislodgers]

I am sure it is all negotiable. We did not negotiate on dues. It stated in our contract that we had to reimburse seller for dues on any points available to us, except dues on banked points. Our resale has all 230 points available in Sept, and even had over 100 banked points. I realize now we should not have paid so much of the 2002 year dues. We ended up paying about 10 months worth of dues, when we will not get those 2002 points until Sept. Over all we were happy with the price we paid and we did not have to reimburse dues on the banked points. I inquired a couple times about how they arrived at the amount we had to pay. The closing company simply told them it is the amount that Disney sent them. When I asked Disney, the CM told me that sellers are usually reimbursed to the dues for the year, regardless of the use year.

It is very confusing, and if you do not want to have to pay for the whole year dues on the 100 points that are coming in Sept, make sure that it states that in your contract.

Good Luck!!

 

[Dean]

There are several factors at play here. First, most resales are set up so if you get the points, you pay the fees. Some even ask you to pay extra if you get banked points. It really stems from the usual timeshare issue of if you get the week, you pay the fees.

This would be fine and good if you paid once a year, the same amount (with adjustments) every year starting at year one. DVC does not do it that way though. They charge you by the month of membership, not the points for the year. That means that in 2002 you are paying for 2001 points until you hit your use year. That means that in your specific question, the neutral fees on a resale would be around NO reimbursement as you'll be paying 2/3 of the fees for the 2002 points in 2003 and are only getting 2/3 of the points (100 2002 points).

Also, DVC will not get any of the fees paid at closing unless it's Jan and the fees are currently due. The fees paid at closing go into the sellers pocket. This is one area where I see a lot of disservice by the resale people. I think it's mostly ignorance of the nuances of DVC rather than dishonestly.

 

[RobDoc]

It sounds to me that the contract has no 2001 points and only 100 2002 points coming.

I wouldn't want to pay any dues- since there are no current points available...and you will pay dues on 150 points in Jan- even though you will only have 100 until Sep 2003.

Good Luck with your decision!

 

[Gigashadow]

As far as I understood with my first purchase and my add-on; We did the MB with our First 300 point purchase (no points for Sept 2001-2002 use year) - We are paying a recalculated monthly payment for our Sept 2002-2003 use year points comming (Your Jan 15th maintenance fee payment start is paying 1 year ahead) so our payment is slightly higher because we closed in March and starting Jan 15th 2003, we will be paying a normal monthly payment for our Sept 2003-2004 use year. The maint payment year start and your Month use year have no direct reflection to each other and only serves as a possible adjustment time for dues for everyone based on the individual resorts capacity sales.

When we purchased our resale I was reasonable and agreed to reinburse the points maintenance fees the seller payed already to Disneyfor the Sept 2002-2003 use year comming, as long as they agreed to my purchase offer. In the end we were both happy because I would not have been able to buy points at VWL for my Sept use year and even if I could, Disney is now asking for $80 a point - more then I paid. I would have loved to pay for nothing myself, but a good purchase is a quick and painless one.

 

[Cap]

It's all negotiable! I purchased a 150 Pt resale in HH in Dec, 2001. It was an October use year and had all 150 Oct 2001 points available. I did not pay any dues share for 2001. I did have responsibility for the Jan 2002 dues bill.

Don't look at just the individual pieces of the transaction. Look at the total out of pocket costs versus the points in the contract, AND the number of points immediately available, banked, or borrowed. It's just like buying a house with a mortgage - all the little bank / realtor / recording / title insurance fees add up and need to be considered as part of the total package.

 

[Dean]

If you buy from DVC directly, you will pay dues from the month you sign the contract or from when you actually get points (like with BCV), whichever is less. Remember that with WLV and with BC, some got points backdated or that they could use before the resort opened. In effect many got points they actually did not pay dues on. If you did the MB, you did get the points, you just sold them back to DVC and paid the fees as part of your closing which likely means you financed them. The dues will be prorated that first year from when the clock starts clicking.