Stripped Contract Dues

[Yinn]

I'm looking at a contract that is stripped, 0 points until 2021. I know for the current year, it's customary for the seller to pay for any dues used. How about future years? I don't think the dues are paid for upon borrowing right? So in this case, would I be paying 2020 dues for essentially nothing and it's up to me to negotiate terms (ie, closing cost covered etc.)

 

[chalee94]

Yes. You would be on the hook for 2020 dues. Negotiate accordingly.

 

[anomamatt]

Yes, Disney will collect dues from you (or whoever the current owner is on Jan 15 (I think that is the date) for 2020. If it changes hands after that, it gets paid in full at time of closing.

 

[Bing Showei]

And given we are only partially through effects of the minimum wage increases, you may want to consider factoring in potential AD increase vs. basing compensation on straight 2019 ADs. If you're left holding the bag, it could end up being a bigger bag than you anticipated. CCV just saw it's property value assessment go up 150%.

 

[Disneycouple99]

I just did the same thing. Was able to get the price down and next years dues.

 

[kniquy]

How about future years? I don't think the dues are paid for upon borrowing right?

I purchased a stripped contract a few years ago, so as part of the deal the sellers were going to "pay MF" on those points used in the future UY. So essentially I received a credit at closing for the estimated MF for the next year. If I remember correctly I didn't actually get a check at closing but it was more of a discount on the amount that I owed at closing.

 

[Yinn]

Thanks everyone. That's what I had suspected.

I just did the same thing. Was able to get the price down and next years dues.

The seller ended coming back as willing to cover '19 & '20 dues.

And given we are only partially through effects of the minimum wage increases, you may want to consider factoring in potential AD increase vs. basing compensation on straight 2019 ADs. If you're left holding the bag, it could end up being a bigger bag than you anticipated. CCV just saw it's property value assessment go up 150%.

Closing in Dec, so it'll be actual 2020 dues.

I purchased a stripped contract a few years ago, so as part of the deal the sellers were going to "pay MF" on those points used in the future UY. So essentially I received a credit at closing for the estimated MF for the next year. If I remember correctly I didn't actually get a check at closing but it was more of a discount on the amount that I owed at closing.

Thanks, I'll have to check when I get the final paperwork. It's selling at a $10 premium to the average selling price instead of a discount of normal stripped contracts so I'm still debating it; but it's a subsidized dues contract so it's very tempting.

 

[Great3]

Thanks everyone. That's what I had suspected.



The seller ended coming back as willing to cover '19 & '20 dues.



Closing in Dec, so it'll be actual 2020 dues.



Thanks, I'll have to check when I get the final paperwork. It's selling at a $10 premium to the average selling price instead of a discount of normal stripped contracts so I'm still debating it; but it's a subsidized dues contract so it's very tempting.

Subsidized Aulani dues is very good, even at their full asking price if it's the contract I think it is that I saw. I paid higher than that before, knowing I make that money back in dues savings over the non-subsidized that sells at the lower initial price per point.

Good luck on your purchase decision!!!

Great3

 

[scot@dvcstore]

Seller is generally responsible for annual dues on any points used or borrowed. If a seller has used the 2020 points you as the buyer should receive a credit at closing from the seller for the annual dues on the 2020 points.

 

[The Jackal]

Subsidized Aulani dues is very good, even at their full asking price if it's the contract I think it is that I saw. I paid higher than that before, knowing I make that money back in dues savings over the non-subsidized that sells at the lower initial price per point.

Good luck on your purchase decision!!!

Great3

It is most likely Aulani but there are a few subsidized contracts out there at Vero Beach too.