Maintenance Fees

[POTCfan]

I've been looking at buying a resale contract, but had a question regarding maintenance fees.

Are DVC maintenance fees paid monthly, quarterly, or yearly? And if points are borrowed, do the maintenance fees have to paid on those points prior to borrowing? The reason I ask is that the contract I am looking at has a December use year, and the first points available are December 2014. I wanted to know if I will be paying maintenance fees for 2013.

 

[erionm]

Annual Dues are billed on a calendar year basis and are due in mid January with a 1 month grace period. There is an option for monthly direct debit from a US financial institution.

 

[DebbieB]

I've been looking at buying a resale contract, but had a question regarding maintenance fees.

Are DVC maintenance fees paid monthly, quarterly, or yearly? And if points are borrowed, do the maintenance fees have to paid on those points prior to borrowing? The reason I ask is that the contract I am looking at has a December use year, and the first points available are December 2014. I wanted to know if I will be paying maintenance fees for 2013.

2013 would be negotiable between you and the seller. I would not pay 2013.

January 2014 you would get the bill. You could negotiate for the seller to pay some of 2014 for you (reducing the selling price).

 

[drusba]

Unless you say otherwise in your offer to purchase, presumption will be that you will pay the pro rata portion of dues that would apply from your closing date to the end of 2013 and that you will pay all of 2014 dues. To avoid that, you need to raise the issue when you make an offer, e.g., put in the offer that the seller will be responsible for all 2013 dues and then do an estimate of 2014 dues and reduce your total purchase price offer offer by 11/12 of that amount on the basis that the seller should absorb dues until Dec 2013. Note you don't want to put a clause that says the seller will in fact pay the 2014 dues after closing because that just creates a potential problem in collecting the money later; DVD will look only to you to pay the 2014 dues after closing and it will be no excuse to your paying them that the seller agreed to do so. Instead, the way to deal with any 2014 dues issue is via a purchase price reduction based on an estimate or 2014 dues.