Question about new deed

[JLitfin]

I'm in the middle of closing on a BCV resale through the TSS and just received my paperwork right before Christmas from the closing company. The closing company is closed until Jan 2nd, so we are unable to call them at this time, that's why I'm asking all you guys in hopes of getting an answer.

When going over the copy of the deed, it has the sellers name and address and than it has our name with c/o to the TSS and their address. Only the seller needs to sign. Is this normal when purchasing DVC resales through the TSS? We own several TS and this is the first time we've ever seen the deed written this way before.

Plus, once we send back the paperwork with the check how long does it usually take for the final closing and to be entered into the Disney system? Thanks.

 

[alldiz]

i am also in the middle of buying points through tss...

they are open this weekend....
any questions call timeshare store...1800 550 6493

i also received my contract...blank...
i think i sign....then TSS sends to owner...
everything done by fax i think....pretty fast...

i was told the day i faxed my siggy that they
were sending it to disney for rofr..
good luck
kerri

 

[Dean]

In most states the buyer does not need to sign a deed and FL is no exception.

 

[LisaS]

Plus, once we send back the paperwork with the check how long does it usually take for the final closing and to be entered into the Disney system? Thanks.

When I purchased my resale contract, I sent the closing paperwork and my check via Fed Ex overnight delivery on a Monday afternoon. The closing company received it on Tuesday morning. The seller also sent their paperwork in very quickly so we closed on Wednesday. It took nine days from closing to get into Disney's system.

I purchased during the summer so things could take longer due to the holidays. I hope everything goes quickly for you!

 

[springandmac]

JLitfin,

I'm in the process of purchasing a resale from TSS too. I'm just curious, were your 2007 Maintenence fees added to the purchase price? The reason I ask is mine were and I just thought that was odd, since it wasn't mentioned in the original contract but was added to the closing statement.

 

[korbbec]

Mine were added into the final payment (closing). I was informed of that before the purchase. I was told Disney required it because the closing was happening so close to when dues are due.

 

[alldiz]

JLitfin,

I'm in the process of purchasing a resale from TSS too. I'm just curious, were your 2007 Maintenence fees added to the purchase price? The reason I ask is mine were and I just thought that was odd, since it wasn't mentioned in the original contract but was added to the closing statement.

My 2007 dues were also included with final price...

I was told Disney likes for you to have a clean slate...no money due soon..
Kerri

 

[springandmac]

My 2007 dues were also included with final price...

I was told Disney likes for you to have a clean slate...no money due soon..
Kerri

Thanks. I'm glad to hear it wasn't just me.

 

[Dean]

JLitfin,

I'm in the process of purchasing a resale from TSS too. I'm just curious, were your 2007 Maintenence fees added to the purchase price? The reason I ask is mine were and I just thought that was odd, since it wasn't mentioned in the original contract but was added to the closing statement.

DVC charges the dues on a Calendar year basis, not a "you pay the dues to get your points basis". So if you buy with say an August 2007 use year and get the 2007 points but no 2005 or 2006 points, the neutral charge for dues would be 5 months of dues, not the entire year. All of the major resellers for DVC take the approach that you pay the entire year in this situation but it is totally and absolutely incorrect. The following is a quote actually written from DVC admin to one of the resellers. The reseller was trying to use it to justify the position I've quoted above but IMO it clearly defines my point exactly. Further evidence is if you bought directly from Disney at any point, your dues would be prorated as I've stated above. DVC prorates based on when you sign or when you get your points whichever is later. Also remember the dues are already paid unless the member is paying in monthly installments and as such, this amount would go directly into the pocket of the seller and not to DVC. The only part that would go to DVC is if they are paying monthly and to be honest, I'm thinking they require that amount to be paid prior to closing and not as part of closing but I'm just not certain at present.

No, they pay a full year of dues. 12 months from January 1 to December 31 for every year and all years thereafter. The only time they would have paid a partial year is the year they bought from us because we prorated the dues for that year from the day they purchased through 12-31. The dues were still based on calendar year which is 12 months. They are NEVER assessed based on Use Year. Just forget about their Use Year and points, that has absolutely nothing to do with dues.

Mine were added into the final payment (closing). I was informed of that before the purchase. I was told Disney required it because the closing was happening so close to when dues are due.

This is incorrect in most cases, see above.

 

[JLitfin]

Dean, Thanks for your knowledge. We were wondering why our address wasn't included in the deed, as it stated c/o the TSS. We've purchased TSs in Virginia, South Carolina, Maryland and Hawaii and have always had our name and address on the deed for both seller and buyer to sign. So you say this is a Florida thing, ok I guess I feel better about this, it really surprised us when we saw our name and c/o the TSS, and that we didn't need to sign.

Yes, the 2007 MF was also included in the final closing statement.

 

[Dean]

Dean, Thanks for your knowledge. We were wondering why our address wasn't included in the deed, as it stated c/o the TSS. We've purchased TSs in Virginia, South Carolina, Maryland and Hawaii and have always had our name and address on the deed for both seller and buyer to sign. So you say this is a Florida thing, ok I guess I feel better about this, it really surprised us when we saw our name and c/o the TSS, and that we didn't need to sign.

Yes, the 2007 MF was also included in the final closing statement.

Come to think of it, I don't know of any states that require the buyer to sign though some include it on the deed, others do not. And that includes SC and MO for certain as I've bought in those states as well. I've done 4 DVC contracts as the buyer and was asked to sign two I believe but not the other two (if my memory serves me anyway).

 

[Cap]

As far as dues being required, remember ANYTHING is negotiable. You really should total up all the monies asked for at closing, including the base point cost, dues, transfer fees, plus the fair value of any banked points, less the fair value of any borrowed points. Then consider how much that is per ongoing point.

Then consider what it would cost if you were buying the same number of points from Disney, with the same use year. Assume that your dues would be prorated from the purchase date to 12-31.
Assume there would be no borrowed points. Add in the fair value of any Disney incentives. Consider how much that theoretical total would be per point.

When you compare the two "per point" costs, you get an idea of what benefit you are getting for buying resale. If you are not getting much, then I would consider the contract overpriced.

You can negotiate point cost, who pays the dues, and who pays any other costs for a resale. Just remember, if the total calculated cost comes out lower then Disney's current threshold, then they may exercise their right of first refusal.

 

[korbbec]

Assume that your dues would be prorated from the purchase date to 12-31.

Ok, all you did was confuse me further So you are saying if I had purchased a Dec U/Y and bought in November, I would only have had to pay dues on Nov and Dec, but would get all of my 2006 points? Or do they prorate your points too? It seems to me that it should not matter when you bought it or when the use year was. You pay the full years MF to get the full years points. What am I missing here, logically? My head is spinning right now.

Edit- and why don't they just base MFs on use year in the first place to eliminate all the confusion?

 

[Cap]

The Disney Vacation Club dues are based on January 1 to December 31. Use year does not make a difference.

If you bought on July 1, Disney would prorate the first years dues to 50% of a year, regardless of your use year. You could be buying a use year of February or of October. Generally, I believe that Disney gives you the full use year of points.

There are more knowledgeable people who can comment here.

 

[LisaS]

Cap is correct. Dues are paid on a calendar-year basis. If you purchase from Disney they pro-rate the dues for that first year from the day you get your first points (generally within a day of purchasing). You get current Use Year points with your purchase. So if you purchased points with an Apr UY prior to Apr 1st, you would get Apr '06 points with your purchase. If you purchased on/after Apr 1st, they would start you off with Apr '07 UY points.

 

[T.E. Yeary]

1. Name on the deed without owners address.

Answer:
A while back there were threads on this board with posters being upset about being contacted by several different resale companies as soon as the deeds were recorded. We made the decision to use TTS address, just like Disney uses their address when recording the deed when you buy direct.

2. '07 dues added on to purchase price.

Answer:
Disney asks that any contract that closes after Dec 15 must have the dues included at closing. It can get pretty tricky for all contracts written in October and through the end of the year.

3. '07 dues proration

Answer:
This issue has been debated into oblivion! Bottom line is, the seller usually wants to be reimbursed for the dues he's paid. Buyer wants to pay as little as possible. The Timeshare Store is in the middle. Whatever the buyer and seller want to work out we will write on the contract.

Happy New Year,
Tom & Staff

 

[JLitfin]

Thanks Tom,

We also received our answer yesterday morning when we contacted the closing company.

The final paperwork and check was mailed this afternoon, can you please give me a time frame of what comes next. How long does it take to be added to the Disney system once we close? Will I have time to bank my '06 pts, which need to be banked by Feb 28th? We can't use those pts until Jan, '08, we have a Sept UY.

 

[Halle]

JLitfin, I've been following your posts and would like to call the closing company tomorrow, what department did you talk to? Thanks for your help, I'm happy things are working out for you.

 

[T.E. Yeary]

I would say that you definitely should be closed before Feb 28th!

Happy "Magical" Vacationing,
Tom