Should resale owners pay lower dues?

[tjkraz]

To be clear though (because you just know it's coming), DVCM is legally (contractually) obligated to provide specific services for that 12.5%.

Agree.

Also, the Association is legally obligated to spend that 12.5% ONLY on the defined services as identified by the POS.

Disagree. There's no detail behind that 12.5% because whatever Disney doesn't spend, they keep. That's the incentive (industry-wide) to actually be a timeshare manager. Sales of ownership interests are a one-time revenue source. But management of the program provides some ongoing profit stream.

Beyond the obligation to provide a minimum level of services, Disney can do whatever it wishes with the 12.5%. It doesn't really matter how much it costs to operate Member Services or how much goes toward specific resorts / owners / perks / programs. We are all obligated to pay the 12.5%. Period. End of story.

It's in the best interest of the timeshare manager to keep things running efficiently. Wasteful spending (like high phone call volume) erodes their profits. And a poor operation theoretically hurts the salability of new ownership interests.

If Disney chooses to use part of the management fee to support Membership Magic, so be it. If not, it just means they keep more of the 12.5%.

 

[CarolMN]

Tim's post seems a perfect way to end this discussion. . (It's degenerated into a repeated & unproductive argument).