prepaying MF for 2018

[Cyberc1978]

Hi guys

I just passed ROFR on a BWV contract. I just received the documents from the closing company and they are stating I have to prepay the annual dues for next year - is this normal to pay them already?

The closing company send me all documents also the estoppel and that one says states if all the documents are received after 8th of december then I have to prepay.

I dont know if this is an error by the closing company or not, I have however already written to them and are awaiting answer.

regards

 

[brertoad]

Perhaps if the escrow/closing company is handling it, you might have to prepay, property taxes are usually something that a title company has to parse out in order to make sure everyone pays their share. If you are or were doing it through member services directly, there is the option for monthly payments. Maybe in your following year, you can set it up for monthly.

 

[CarolMN]

Did you agree to reimburse the seller for 2018 dues?

The dues for 2018 haven't been set/announced yet. They are generally approved at the annual meeting. This year that will happen on December 7, 2017. Maybe DVC requires prepayment for closings on or after the annual meeting.

 

[Cyberc1978]

I’ll pay 2017 dues they are included in the sales price. The 2018 days i ofc need to pay. I just find it odd that I have to pay now especially when the estoppel says if closing documents are received after 12/8/2017 then the 2018’annual dues needs to be prepaid.

 

[Cyberc1978]

Is there anyway to find out if the 2018 dues has to be paid now or not?

I mean except for calling the closing company.
Regards

 

[Dean]

Is there anyway to find out if the 2018 dues has to be paid now or not?

I mean except for calling the closing company.
Regards

For DVC they're not due until January and not billed until Dec. It sounds like they're either charging you separately (? twice) for the 2017 fees or they are misinformed. You should have enough time to close and pay the dues yourself unless it's HI.

 

[Matty B13]

Yeah, that’s weird. We have bought 3 contracts resale and never had this happen, even when closing happened in September.

 

[LionKingCPA]

I put an offer on a contract in late summer 2015. I believe the title company told me that if closing occurred after a certain date (I'm thinking it was around Dec 10th), they had to collect the maintenance fees for the next year at settlement. My closing was scheduled for 12/15 but it actually got moved up to mid November so I didn't have to prepay in the end.

 

[Cyberc1978]

For DVC they're not due until January and not billed until Dec. It sounds like they're either charging you separately (? twice) for the 2017 fees or they are misinformed. You should have enough time to close and pay the dues yourself unless it's HI.

Hopefully I’m not ending up with 2x the bill. When I contacted the closing companyi Informed them that the dues for 2018 was not supposed to be paid yet and asked them to correct it.

As of now I haven’t heard back from them yet.

 

[Cyberc1978]

Yeah, that’s weird. We have bought 3 contracts resale and never had this happen, even when closing happened in September.

I put an offer on a contract in late summer 2015. I believe the title company told me that if closing occurred after a certain date (I'm thinking it was around Dec 10th), they had to collect the maintenance fees for the next year at settlement. My closing was scheduled for 12/15 but it actually got moved up to mid November so I didn't have to prepay in the end.

That was my thoughts also, but for whatever reason they are asking me to pay them now. Hopefully it’s only an error.

 

[KAT4DISNEY]

That has been the norm starting 2 or 3 years ago. I believe I read the DVC actually started requiring it in order to complete the transfer. Now a question would be if they really can do that but it has been done for at least a couple of years now.

It seems to be getting earlier and earlier though. I feel like the first year it was required if you were closing in Dec. Then next it became more like November. Now early October? That part is new I think.

 

[Cyberc1978]

That has been the norm starting 2 or 3 years ago. I believe I read the DVC actually started requiring it in order to complete the transfer. Now a question would be if they really can do that but it has been done for at least a couple of years now.

It seems to be getting earlier and earlier though. I feel like the first year it was required if you were closing in Dec. Then next it became more like November. Now early October? That part is new I think.

Thanks for writing this.

I just find it odd that the estoppel information provided by DVC says that prepayment is required if the closing documents are received after 8th of December.

Why write 12/8/2017 and require it much earlier?

 

[KAT4DISNEY]

Thanks for writing this.

I just find it odd that the estoppel information provided by DVC says that prepayment is required if the closing documents are received after 8th of December.

Why write 12/8/2017 and require it much earlier?

I'd contact the closing company. Even with any possible delays in closing I think if you question it they'd be hard pressed to claim closing will definitely occur after Dec 8th.

 

[Cyberc1978]

I'd contact the closing company. Even with any possible delays in closing I think if you question it they'd be hard pressed to claim closing will definitely occur after Dec 8th.

I’d already did contact them by mail but they haven’t responded yet, I don’t think either that they can claim closing to happen after 12/8.

 

[Dean]

Thanks for writing this.

I just find it odd that the estoppel information provided by DVC says that prepayment is required if the closing documents are received after 8th of December.

Why write 12/8/2017 and require it much earlier?

Certainly requiring it by the time the dues are billed is reasonable because you could be at the past due date by the time it's all changed over and the bill would have gone out to the then owner. That's why I said except for HI because it takes much longer. In the end it doesn't matter too much as long as it's actually the 2018 dues. For those planning to pay it monthly over the next year it is a bigger deal but I suspect you don't have that option anyway. Just be sure it's actually the 2018 dues and/or get them to take it off.

 

[Cyberc1978]

Just be sure it's actually the 2018 dues and/or get them to take it off.

How do I make sure of that?

 

[Dean]

I'd probably contact DVC member admin, look at the wording on the contract and closing and follow with specifies with the closing company. It sounds like you've done much of that already. As long as it's next years dues, it really shouldn't be important otherwise. While it can be a drain on the finances with having to pay the amount at a different time than expected, it shouldn't be enough to derail the train financially when it's affordable anyway.

 

[Matty B13]

I wondering if DVC will let you pay them directly over the phone with a CC, instead of paying through the Closing Company? Might want to ask.

 

[Dean]

I wondering if DVC will let you pay them directly over the phone with a CC, instead of paying through the Closing Company? Might want to ask.

Doubtful but even if they would, you wouldn't want to prior to being changed over because if something happens, you'd have paid the owners dues and wouldn't have any way to get the funds back. I'd rather take my chances on paying with closing than paying not owning. It's doubtful that DVC will even talk but I'd at least make the call.

 

[Cyberc1978]

I wondering if DVC will let you pay them directly over the phone with a CC, instead of paying through the Closing Company? Might want to ask.

Great idea, but as the contract is not in my name yet I don’t think that’s an option.