MF question

[minnime]

I have noticed that resale contracts with a UY of October and later show all the MF are due for 2012. I thought that the MF are due in January. So if I buy a contract with a Oct UY and no points until Oct 2012 haven't the MF been paid already and not due again until 2013?

 

[Chuck S]

Whether they have been paid to Disney or not doesn't really matter, as you can negotiate with the seller as to who will pay the fees as part of the sales contract.

For instance, say my dues were paid in full, and I decided to sell the contract. I could, as part of the deal, tell the buyer that I wanted them to reimburse my for the current year dues.

You are correct that dues are due in January, and are considered delinquent in mid-February. However, many (most) members also have the dues debited from a checking account in 12 monthly payments. DVC allows this for no extra costs, so in reality, my 2012 dues are only about 50% paid, but if I sell a contract, someone will need to pay the balance in order to close, either the seller or the buyer.

 

[AJA]

We negotiated who paid what MF's for our contract. Who ends up paying MF's depend on what the seller and buyer agree to.

The thinking behind it is, it really doesn't matter what month your points come in, since the owner did not use any of the 2012 points (and the buyer will) the owner would like to be paid back for the MF's they've paid on points they did not get to use. Simply stated for the 2012 UY the buyer gets all the points and is "asked" to pay all the MF's.

When the contract becomes yours and the 2013 year rolls around Disney invoices in January, not on the actual month of your UY.

 

[AllieV]

This answer is in no way reflective of what everyone does. When I was making offers, it took a couple of months, so I was calculating dues based on how many months were left in the year regardless of when the UY month was. This was assuming of course, that all points were available at that moment. If it was a late UY (like october or december) and no points were available till then, I offered no dues reimbursement. Most people agree that having a late UY really means those points are meant for the following year and if they've used them, they've robbed you in a way. I ended up with a deal that wouldn't finish until mid-year, so we split dues fifty-fifty. If you buy a contract in January or February, the seller would probably want full reimbursement.

 

[LisaS]

You could do it the way Disney does it -- pro-rate the dues based on the points you will get the first year. In this situation with no points until Oct 2012, Disney would charge the buyer 92 days worth of dues (for Oct + Nov + Dec).

 

[Missyrose]

Everything is negotiable when buying resale. Some people live by the code that if there are current UY points, they'll pay MFs when buying the contract. I think it's not as cut and dried. If you're low-balling the per-point price, you may want to offer to pay MFs, or submit your first offer without paying them and then negotiate them back in. Totally up to you as a buyer.

 

[jarestel]

As stated, everything is negotiable with a resale contract. Some sellers are extremely motivated to be rid of - err, I mean sell - their contract while others have the time to let a contract sit for a while to see what happens.

I've sold a number of contracts and my position has always been whoever uses the points pays the MF as I don't see any reason to subsidize a buyer's vacation nor would I expect a buyer to subsidize mine. But it never hurts to ask the seller to pay MF and sometimes it pays off.

Good luck!

 

[Sandisw]

As many have mentioned, how you deal with MF's in a resale transaction is really up to the buyer and the seller.

When I bought BWV last year, I had a price per point in mind I was willing to pay but was also willing to pay a bit more if some or all of the MF's were covered.

As it was, I ended up buying a contract with a Dec UY that had all 2011 UY points. Since the price the seller was asking was more than I wanted to pay, instead of offering just a lower amount and paying MF's, I offered higher price per point but did not offer to reimburse him for the 2011 fees he had already paid, even though I was getting all 2011 points, because MF's are based on calendar year, and not UY. I wasn't closing until August, almost 9 months into the year and felt it was a fair offer. My seller agreed and we struck the deal.

IMO, people should consider all the aspects of the deal and offer what they feel meets their expectations. It did take me 4 contracts before I found a seller willing to accept my deal and I was perfectly okay with this.

Good luck!

 

[LisaS]

As it was, I ended up buying a contract with a Dec UY that had all 2011 UY points. Since the price the seller was asking was more than I wanted to pay, instead of offering just a lower amount and paying MF's, I offered higher price per point but did not offer to reimburse him for the 2011 fees he had already paid, even though I was getting all 2011 points, because MF's are based on calendar year, and not UY. I wasn't closing until August, almost 9 months into the year and felt it was a fair offer. My seller agreed and we struck the deal.

I agree, that was a fair offer assuming your first points were the Dec 2011 points and the contract included no Dec 2010 points. The 2011 dues that the seller paid covered the last 11 months of the 2010 UY and the first month of the 2011 UY. Your share of the 2011 dues would be 1/12th of the total amount the seller paid. You paid for the rest (11/12ths) of those points in your 2012 dues.