Resale purchase question about dues?

[Fmrlifeguard]

Here goes, I hope I make sense. I am looking to purchase a resale contract. I understand maintanence fees are billed in Jan and apply to the calendar year. However, when I am looking at purchasing a contract, say with a December use year, shouldn't I ask for a credit for 03' dues. The way I look at it, I will not 'officially' get my points until Dec 03'. My use year will then be through Dec 04'. Why should I pay for Jan-Nov 03'?

Another question. If purchase through disney, where right now the use year would be June and they are giving you last year's June points - magical beginnings. Do you have to pay last year's maintenance fees?

Thanks for the help!!!

 

[Dean]

What fees are appropriate depend on how many points you get and when you buy. If you bought a Dec. use year and got all the points, you would be at basically a break even point by paying no reimbursement to the seller but with you paying the dues come Jan of this year. Each contract is different and much be evaluated individually.

If you buy from DVC and got a June use year getting June 2002 points, you would only pay the dues for the prorated portion the rest of the year, 2 months worth in you bought now. That is true whether you do MB or not.

 

[buzz5985]

I am in the process of purchasing 150 points at HH, December use year, $62/point. There are 37 banked points, with all 150 points coming in December 2002. When I received the resale contract, I called my resale agent and questioned the dues for 2002. I also posted on this message board. LOL After all the great advice from this board. I told him that I really thought the dues he had spoken of on the phone were for 2003. I then told him I would not pay the dues for the 150 points for 2002, for which I did not use, but would pay the dues for the 37 banked points for 2002. The sellers agreed and I did not have to pay the 2002 Maintenance fees. I should be closing within the next 10 days!!!! I am so excited.

 

[Caskbill]

A December use year would receive an allocation of points THIS December 1, 2002. You wouldn't be waiting until Dec 1, 2003. That is of course unless the previous owner had already borrowed those points and used them. Technically if Dec 2002 points are still going to be there, and the previous owner had already paid the 2002 dues on them, you're getting them dues free. If he had already borrowed them, and paid the dues on them, then you're buying a contract where the 2002 points had already been used.

Remember that for a December use year, we are currently (today: November 2002) still in the 2001 Dec use year. The prior owner has already paid the 2002 dues so the points you would receive in Dec 2002 (if any), have already had the maintenance fees paid on them.

The Jan 2003 maintenance fees would be for points that would be allocated Dec 1, 2003. You pay maintenance fees for the points you are receiving that year. So everybody pays Jan 2003 for the points they will receive in 2003, whether they get them 3/1/03 for a March use year, 6/1/03 for a June use year, or even 12/1/03 which would be a December use year.

If you purchase through Disney they pro-rate the dues based on the month. For example June 2002 points would be a 2002 use year but with only 7-months left in Calendar 2002, so you would pay 7/12th of the maintenance dues, even though you still receive 100% of 2002 points. Then in Jan 2003 you would pay the full dues for your 2003 use year, receiving the points June 1, 2003

Hope this helps.

 

[Dean]

Originally posted by buzz5985
I am in the process of purchasing 150 points at HH, December use year, $62/point. There are 37 banked points, with all 150 points coming in December 2002. When I received the resale contract, I called my resale agent and questioned the dues for 2002. I also posted on this message board. LOL After all the great advice from this board. I told him that I really thought the dues he had spoken of on the phone were for 2003. I then told him I would not pay the dues for the 150 points for 2002, for which I did not use, but would pay the dues for the 37 banked points for 2002. The sellers agreed and I did not have to pay the 2002 Maintenance fees. I should be closing within the next 10 days!!!! I am so excited.

DVC charges dues on a Calendar year basis. That means that the seller paid for the 12 months of 2002 already. That would have been for 11 months of the 2001 use year and 1 month of the 2002 use year. The neutral position on fees would have been for you to pay for 1/12 of this years fees and possibly for the 37 banked points as well. It is not a pay the dues to get the points situation like most resale agents think.