Resale Maintenance Fees

[poohbear158]

I'm currently looking at a contract via resale. It has 2015 points banked into 2016. Is it customary for the buyer or seller to pay those maintenance fees?

 

[bumbershoot]

No sure if this is useful, but the fees on the 2015 points have already been paid. And unless the seller has a monthly debit for dues, 2016 points are paid up, too. So you wouldn't be paying Disney that money if your contract had you pay, I believe, but paying it back to the seller, right?

I'll let others help you with what's customary (and to correct me if I'm off base).

 

[DisDadDVC]

I'm currently looking at a contract via resale. It has 2015 points banked into 2016. Is it customary for the buyer or seller to pay those maintenance fees?

It is def not customary to pay on the 2015. People often negotiate on the 2016. Having said that, everything is negotiable.

 

[jerseyduke]

Everything is negotiable.

Technically the 2015 MFs should have been paid by now.

I would expect to pay all 2016 fees. The buyer may have paid these, if they are up to date, however they could pay by the month.

What is the UY?

Do the banked 2015 points expire soon? (Like an april UY?) Remember ROFR and closing will take time. Those bank points might have limited life on them, depending on UY.

I would offer to pay the 2016 Fees, not the 2015.

See if they accept.

I MIGHT pay 2015 IF it is a late UY, and then only on the portion of points that you get.

If the seller banked all 2015 points, it is in many ways like you are purchasing the contract a year ago yourself, and banking the points yourself, so you would have paid the MFs. But again, assume at least 2 months before you can touch any points, so that could distress the banked points, reducing their value.

I just bought a contract, August UY, with no 2015 points, and offered to pay prorated MFs (August on), buyer rejected. From my point of view, if I were buying Direct,with an August UY, I would only pay MFs for August on, not all of 2016 (unless Disney got me 2015 points as well, and then paying all 2016 MFs would be fairl) But the Price per point was good enough that I caved.

 

[disneynutz]

I think that most brokers feel that if you get to use the points, you pay the dues.

Bill

 

[gharter]

When we put in our bid, everything was considered negotiable. If you are close, then it's just a dance to see where you end up. If you're far apart, you either up your offer, or move. Similar to purchasing a car. All part of the game.

 

[poohbear158]

Everything is negotiable.

Technically the 2015 MFs should have been paid by now.

I would expect to pay all 2016 fees. The buyer may have paid these, if they are up to date, however they could pay by the month.

What is the UY?

Do the banked 2015 points expire soon? (Like an april UY?) Remember ROFR and closing will take time. Those bank points might have limited life on them, depending on UY.

I would offer to pay the 2016 Fees, not the 2015.

See if they accept.

I MIGHT pay 2015 IF it is a late UY, and then only on the portion of points that you get.

If the seller banked all 2015 points, it is in many ways like you are purchasing the contract a year ago yourself, and banking the points yourself, so you would have paid the MFs. But again, assume at least 2 months before you can touch any points, so that could distress the banked points, reducing their value.

I just bought a contract, August UY, with no 2015 points, and offered to pay prorated MFs (August on), buyer rejected. From my point of view, if I were buying Direct,with an August UY, I would only pay MFs for August on, not all of 2016 (unless Disney got me 2015 points as well, and then paying all 2016 MFs would be fairl) But the Price per point was good enough that I caved.

It's a September use year and it is all of the banked points, not just a portion.

 

[jerseyduke]

It's a September use year and it is all of the banked points, not just a portion.

I misread earlier, 2015 points banked into 2016, Sept UY, means the banked points expire 8/31/17, so you have plenty of time to use them.

Ask if they are paid already. They may very well be! (and worked into the price of a "loaded" contract)

If not, as a buyer, I would see it as perfectly reasonable if I was to pay the 2015 dues, since I am getting all the points.

Again, they may be paid, and everything is negotiable.

Remember, those points can be rented, which will pay the MFs, and should clear you anywhere from 5$ up per point. Effectively lowering your purchase price per point 5-6$. If you did not have to pay the 2015 Dues, then renting them out is pure profit, and would effectively lower your purchase price from 11-13$ Just a thought to consider when evaluation the value of the contract.

 

[DisDadDVC]

I think that most brokers feel that if you get to use the points, you pay the dues.

Bill

Not for prior years IMO.

 

[JimMIA]

Not for prior years IMO.

Agree. In most cases, those banked points are just a "deal-sweetener" and their value is reflected in the price per point. I would not expect the buyer to pay MFs for those points, unless the price was a steal. And if the price was a steal, strategically you'd probably be better paying a little more per point and getting the points free...for ROFR purposes.

 

[pinklotusflower]

when we bought our contract last year we got 80% of 2014 points and all of 2015, we only paid the MF on the 2015 points, I'd negotiate unless your desperate for that particular contract as the 2015 point will already have been paid for.

 

[sndral]

Add the cost of the MFs to the price per point ($5-6, depending on resort) and compare to other contract's price per point for sale. If it's still a good deal it doesn't really matter what you call it. If that extra $5-6 a point makes it more expensive than other contracts then you need to decide whether paying a premium is worth it to you - can you use those banked points in the use year they're banked into? Do you want to hassle with renting the points to recoup your money?
Most brokers seem to expect that current year's MFs will be paid by the buyer - although it is negotiable. I've read that the newer brokerage owned by the former DVC guides has asked for MFs on banked points. Personally I'd probably not agree to pay MFs on banked points and I'd just move on to another contract, lots of brokers w/ lots of contracts for sale out there right now.

 

[Dean]

I'm currently looking at a contract via resale. It has 2015 points banked into 2016. Is it customary for the buyer or seller to pay those maintenance fees?

IMO the neutral dues in this situation would be that you pay for one years dues if it's Sept with all 2016 intact and all 2015 banked to 2016. Remember you're paying the dues on 8 months of the 2016 points in Jan when they're due.

 

[jmmess]

Agree. In most cases, those banked points are just a "deal-sweetener" and their value is reflected in the price per point. I would not expect the buyer to pay MFs for those points, unless the price was a steal. And if the price was a steal, strategically you'd probably be better paying a little more per point and getting the points free...for ROFR purposes.

Agree. 2015 points are done and over being paid and are a bonus. 2016 dues make sense to pay if you are getting 2016 points as you are getting them for the current year. You are basically reimbursing the seller for the dues this year. If you aren't getting points until 2017, then I wouldn't pay dues for this year.