MF and Closing Costs: Who Pays What When You Purchase Resale

[cpc430]

This might be a dumb question, but what's customary as far as who pays for what when making an offer on a resale contract?

Does the buyer usually pay for the 2014 maintenance fees (assuming the current points are there to use)? Would the buyer pay the maintenance fee on banked points? Maintenance fees are paid in January, regardless of UY, correct? So we wouldn't pay MF again until Jan of 2015? Last question, the buyer typically pays for the closing costs too?

I've read that this can all be part of the negotiation process, but I also want to be sure that when we do make an offer on a contract we want, we come to the table with something reasonable.

Thank you!

 

[pharm55]

This might be a dumb question, but what's customary as far as who pays for what when making an offer on a resale contract? Does the buyer usually pay for the 2014 maintenance fees (assuming the current points are there to use)? Would the buyer pay the maintenance fee on banked points? Maintenance fees are paid in January, regardless of UY, correct? So we wouldn't pay MF again until Jan of 2015? Last question, the buyer typically pays for the closing costs too? I've read that this can all be part of the negotiation process, but I also want to be sure that when we do make an offer on a contract we want, we come to the table with something reasonable. Thank you!

We are waiting on closing on an August use year that has 15 banked 2012 points, 133 current 2013 points and all 2014 points. We will pay maintenance on the 2014 points so will be reimbursing the seller on what they paid so far (they are on monthly payment plan) and the rest to Disney at closing. We also are paying closing fees. We will not pay MF's on the banked points or the current 2013 points.
Good luck!

 

[Sandisw]

Everything is negotiable when buying resale. Twice I have not paid MFs for points even though I got them because I bought 6 months into the year. I went in with what I wanted and waited until I found a seller who wanted to accept. I felt that offering closer to asking but no M Fs worked better for me.

But, my first contract I did indeed pay both.

 

[DizBub]

This might be a dumb question, but what's customary as far as who pays for what when making an offer on a resale contract?

Does the buyer usually pay for the 2014 maintenance fees (assuming the current points are there to use)? Would the buyer pay the maintenance fee on banked points? Maintenance fees are paid in January, regardless of UY, correct? So we wouldn't pay MF again until Jan of 2015? Last question, the buyer typically pays for the closing costs too?

I've read that this can all be part of the negotiation process, but I also want to be sure that when we do make an offer on a contract we want, we come to the table with something reasonable.

Thank you!

Closing costs can be negotiated but usually the buyer pays them. This also seems to help with ROFR because Disney counts the closing costs towards the price per point. No guarantee but can't hurt especially if you are getting a good price.

MFs can also be negotiated but usually buyers pay the MFs on available points. There should be no MFs on banked points.

Since all MFs are due in mid-January they should already be paid in full and buyers typically will have to reimburse the sellers.

Unless they are paying their dues monthly.....I never considered this so am wondering about it myself. What if sellers expect reimbursement on MFs they haven't paid yet? I would ask your broker about that. Just in case.

 

[franbot]

Unless they are paying their dues monthly.....I never considered this so am wondering about it myself. What if sellers expect reimbursement on MFs they haven't paid yet? I would ask your broker about that. Just in case.

If the seller is paying MFs monthly, assuming the buyer pays MFs the seller would be reimbursed what they have paid to date and the rest will be paid to DVC to cover the balance owed on the MFs.

 

[lions1995]

Bought twice, relatively loaded contracts. Seller paid MF and closing.

It really comes down to who wants it bad enough. If neither agree, skip to the next contract or buyer.

It may depend on the broker company out there. I know one of them acts like the buyers responsibilities for MF and closing are a rule. I just don't bother talking to that broker.

 

[Minniesgal]

It's all negotiable.

 

[Dean]

This might be a dumb question, but what's customary as far as who pays for what when making an offer on a resale contract?

Does the buyer usually pay for the 2014 maintenance fees (assuming the current points are there to use)? Would the buyer pay the maintenance fee on banked points? Maintenance fees are paid in January, regardless of UY, correct? So we wouldn't pay MF again until Jan of 2015? Last question, the buyer typically pays for the closing costs too?

I've read that this can all be part of the negotiation process, but I also want to be sure that when we do make an offer on a contract we want, we come to the table with something reasonable.

Thank you!

The neutral position for DVC is seller pays commission and buyer pays closing and for the remainder of the calendar year for maint fees. The brokers will take the position that you get the points you pay the fees but this is simply incorrect with DVC but it may not be worth fighting with them on and simply rolling those extra costs into your overall price point.

 

[a742246]

When I bought resale I paid closing and prorated current years points but did not pay prior years points.