Question about buying resale - what's 'no maintenance' mean?

[spacy9]

I was looking at resale DVCs a little while back and came upon a listing that said 'no maintenance fees'. Does this mean that if I were to have bought this resale that I wouldn't have had to pay mainenance fees each year? I didn't know this was possible. Has anyone else heard of this? If this is true it must be very rare to come up for sale...

Thanks for any information.

 

[JeanJoe]

Does this mean that if I were to have bought this resale that I wouldn't have had to pay mainenance fees each year? I didn't know this was possible.

Sadly, that's not what they meant, though it would sure be nice wouldn't it!

Maintenance fees are due in January of each year, regardless of the use year. Many sellers assume that the buyer will reimburse them for the maintenance fees that the seller paid earlier in the year. There have been threads in the past about whether and how much the buyer should reimburse.

As with all other parts of the contract, the maintenance fee issue is negotiable, and "no maintenance fees" in the contract probably just means that the seller is not expecting you to reimburse the maintenance fee they paid in January.

Good luck!

 

[DebbieB]

I agree, it means no maintenance for this year.

 

[Caskbill]

Keep in mind that the value of that statement depends on what use year they have and whether points have been banked or borrowed.


Say the contract has all of it's 2005 points, no banked 2004 points, and no borrowed 2006 points. Assuming an average of $4.00/point maintenance, then if it's a February Use Year, it's worth about $3.67/point. If it's a December Use Year, then it's worth about $0.33/point.

If the contract has points borrowed from 2006, then that statement is worth absolutely nothing.

 

[spacy9]

Thank you for the quick responses. That makes sense now - just found it odd since it was the only one that I have ever seen listed that way.

Thanks