Resale and paying MF?

[FloFlo71]

When watching the rofr thread I have noticed negotiations for sales include MFs. I am a little confused I thought MFs were paid in January each year so if I bought a resale with '11 points wouldn't these MFs already have been paid in Jan '11?

Thanks

 

[Deb & Bill]

When watching the rofr thread I have noticed negotiations for sales include MFs. I am a little confused I thought MFs were paid in January each year so if I bought a resale with '11 points wouldn't these MFs already have been paid in Jan '11?

Thanks

Yes, but by the original owner. So they want their money back on points they haven't used. Let the new owner pay those fees by paying the original owner what they paid.

 

[FloFlo71]

Thanks, so they aren't actually paid to Disney they are paid to the seller in lieu of payment they have already made.

 

[Deb & Bill]

Thanks, so they aren't actually paid to Disney they are paid to the seller in lieu of payment they have already made.

Exactly.

 

[staceymay00]

It is all negotiable, but I think it is common for the current year's MFs to be reimbursed to the seller if the points have not been used by the seller. We bought an Oct UY contract early in 2010. We did reimburse MFs for the 2010 points, but our contract also had all 2009 points and we were not asked to reimburse the seller for 2009 MFs.

 

[csharpwv]

When we bought out HHI contract (December Use Year) just a few months ago we received banked points from 2009, and current points from 2010.

We only reimbursed the seller the CURRENT year's maintenance fees.

So we walked away from the sale with 270 points completely 'free'.

The only thing I wish had been different is that the seller had used 2010 points, even though they had all of their 2009 points banked.

 

[Dean]

Disney MF are paid on a calendar year basis. That means for a June UY, dues paid in Jan cover 5 months of the previous years UY and 7 months of the one upcoming in June. Thus if you only got the points starting in June, and you reimbursed for the entire years MF, you over paid for a factor of 5/12 of the years MF. It is money back into the sellers pocket. IMO, this issue (along with points available in general) is often the make or break of whether a deal is a good one or not.

 

[adminjedi]

In real estate transactions, taxes are pro-rated to date of close. With a direct purchase, Disney pro-rates MFs to date of close. In resale transactions, everything is negotiable, but standard expectation would be pro-rated to date of close.

 

[LisaS]

In real estate transactions, taxes are pro-rated to date of close. With a direct purchase, Disney pro-rates MFs to date of close. In resale transactions, everything is negotiable, but standard expectation would be pro-rated to date of close.

Disney pro-rates MFs starting from the later of your purchase date, the start of your initial UY and the occupancy date of the Unit you purchased (applicable only to new construction). In other words, with a direct purchase your MFs start from the date when you can begin using your first points which in cases other than new construction is usually as soon as you make your deposit.

 

[Dean]

In real estate transactions, taxes are pro-rated to date of close. With a direct purchase, Disney pro-rates MFs to date of close. In resale transactions, everything is negotiable, but standard expectation would be pro-rated to date of close.

Disney prorates from date of signing (not closing), day UY starts or day points are available to the account, whichever is later. In my example above, that would be 7 months of the dues (7/12).