resale and dues

[rwickert]

We've decided to purchase a resale at BWV for 270 points. One of the items that came up was we would be responsible for the dues for whatever is left. This hasn't been totally worked out yet so I'm asking for comments on what would be reasonable.

The use year is December. There are 20 points left and the full 270 come 12/2001.

So, the current owner has used 250 of the 270 points for 2000. Do you consider the dues paid since 1/2001 tied to those points or to the points I'm going to be getting 12/2001?

Also, those 20 points left - if I close early September can I still bank them for use next year?

Thanks!

 

[Dean]

Dues are paid on a calendar year and not directly tied to getting your points. The seller paid the dues in Dec that would have included 11 months of the 2000 points and 1 month of the 2001 points. Reimbursing the seller for the dues on 20 points or for 1 month of the 2001 points either would be reasonable even both as long as the 20 points can be banked. If they're asking you to pay most of the dues for the points you get in 2001, walk away and don't look back. The agreed price plus around $450 for closing (almost $2 pp) and another $3-4 extra pp in the sellers pocket makes a good deal bad in a hurry. Assuming the seller isn't paying dues by the month, DVC will not expect any dues at closing and will expect the full dues this Dec from you if you complete the purchase. Therefore this is simply extra money in the sellers pocket.

Most timeshares are sold with the maint fees tied to the usage of the week in question and therefore it is customary to pay the fees if you get the week, DVC is different in this regard. Unfortunately most resales agents don't realize this and many who buy DVC resale pay double for a portion of their points. This includes those brokers that specialize in DVC. I would be very skeptical of a broker or closing agent that suggests you pay the extra.

 

[PamOKW]

Up to 25% of your allotment of December Use Year points can be banked by the end of September. You could bank the 20 points.

 

[drusba]

Note, typical at closing on a resale even if the seller is paying monthly dues is that all dues for the year that have not yet been paid will be paid to Disney. Often, the boker will suggest (it has happened on both my resale purchases) and many will accept that the buyer assume this year's dues only for the number of points currently available--meaning the 20--and the seller absorb them for the used points. (Prorations can be done other ways but that is just one commonly made suggestion by the broker.) If that is what is being offerred you are probably OK because you are talking less than $80 as your share of this year's dues. You should check on what they mean by your share so you can determine how to respond. You will need to close before end of Sept to be able to bank those points.

 

[gscott8075]

I bought in March. There were 85 banked points + 190 points additional in June.

The seller had already paid for this year's dues in full. We did not pay any maintenance fees this year - we start in 2002.

Not all can be this way - but remember, a seller wants to sell as much as you want to buy.

 

[Disney Adventurer]

I thought use year had nothing to do with dues. I have read that dues are due at the beginning of the year no matter what the use year is. Thus on this, the seller would have paid the December 2001 use year dues in Juanuary 2001, is this not correct. I'm in the middle of purchasing a resale so this is of concern.

 

[gscott8075]

D.A......

But most folks pay month by month via Disney direct debit.

Dues are based on calendar year. However, two common ways of evaluating the wo pays the dues question is

1. Buyer picks up the remaining dues payments from closing forward. (400 points, $3 dues = $1200 divided by 12 months = $100 per month. Settle in June and pay seller - or Disney - $600. for the balance of the year. )

2. Buyer pays the dues for the number of points remaining for the year. (ie Contract for 200 points, $3 dues, 100 points not used would be $300 to seller)

 

[Dean]

Disney Adventurer, you started out right. There is no correlation to use year and when dues are paid. However, the dues paid in Dec, 2000 were for the year of 2001 which included 11 months of the 2000 points and 1 month of the 2001 points. I cannot emphasize enough that it was not for the points coming in Dec of 2001. Of course you do not have to pay any maint fees as previously noted, it's a negotiable item.

Post your specifics of use year and points availability and we can give you some guideslines as most who buy resale will pay some maint fees and frequently far too much when DVC points are concerned.

 

[Dean]

With both of the methods described by gscott8075, you would overpay with many contracts unless there were a significant number of points banked that you could use. The pay by the month is simply DVC's way of allowing you to pay what was due the previous December. In the example that started this thread, the proper dues are some where between $90 and $170 depending on the 20 points in questions. And that's irregardless of when the purchase occurs.

 

[Disney Adventurer]

I think I'm a little clearer but now some specifics. The resale I am working on does not have points banked and there will be no payment of maintenance by me, but I still have a question. The use year is December but this has nothing to do with dues, correct? ? ? Lets say I close in September, everything is paid for 2001. Will I then receive a bill from Disney in January 2002 for the whole amount of dues for 2002? Will I be able to make monthly payments throughout 2002 for the 2002 dues if done by monthly debit or will I have to pay the full amount for 2002 in January?

 

[RobDoc]

You will get a bill for the entire dues payment unless you have made arrangements to pay by debit from your account. The maintenance fee is due and payable in Jan- unless you have made other arrangements thru Member Accounting.

Again, the dues will be for calendar year 2002- not any specific use year.

Good Luck!

 

[gscott8075]

Just make sure that its in your contract that all 2001 dues have been paid for by the seller. This can be in the contract or stated on the closing sheet.


The last thing you want is a surprise!

 

[Disney Adventurer]

It's in the contract that all 2001 dues are to be paid by seller. So if I contact member accounting after I close and set up monthly debit starting in Juanuary, I won't have to pay the full amount in January?

 

[gscott8075]

That is correct. Call Member Services at 1-800-800-9800 and select member accounting. Tell them you are buying a resale. There is a direct debit form which they will send.

Congrats!

 

[Disney Adventurer]

Thanks, so much great info on the boards. So far the transaction has been pretty easy, but not closed yet. Getting anxious to make it official so I can get the "Welcome Home"

 

[Lora]

I spoke to member services this week about banking points that I would be buying through resale. My use year is also December and I was hoping for a closing before the end of August so I could bank up to 50%. She said that as long as I have a signed contract, I could bank the points before the closing. Also - couldn't the seller bank the points for the buyer if you have to bank before closing?

my specifics...

I have 150 December use year points at BWV - 22 of those remain from Dec 2000 that I will bank by August.
I want to purchase 75 points as an add-on - and I'm assuming that I'll end up with a different use year, but if it happens to be Dec. aslo, I would only be able to bank another 56 points in Sept. (25% of 225).

Is this right?

Sorry to tag my question to the original post, but I figured this was related. Thanks.