Stripped contracts and annual dues

[Cfabar1]

I’m wondering how people feel about offers with stripped contracts particularly with December use years.

We have a December use year. If a contract is stripped of the 2023 points, meaning the earliest I will get new points is December 2024, it seems silly to pay annual dues for the entire 2024 year.

If you buy direct Disney prorates your dues based on what time of year you bought in. Resale tends to have that be part of the deal much less frequently.

Yes I know you can borrow points a year ahead, but that really isn’t the point.

Am I missing something?

 

[Sandisw]

Resale does treat it differently but I never have…except once.

Dues are for operation of the resort. If you are not a owner before a certain time in the year, why should you pay for it?

I know the amount owed is based on size of contract but technically, points are just representive of your fractional share of ownership.

So, I also treated it like DVD does and based what I would pay or expect to be reimbursed when I was buying or selling.

The one time I paid full dues was buying in July and it was a fullly loaded contract with a Dec UY. Instead of paying 6 months, I paid all 12 because that extra $400 wasn’t worth walking away from what I thought was a great contract.

Other than that, it was based on time of year.

Now, in your example, I do think it’s fair to pay 2024 dues since you are indeed an owner of that contract. Having said that, I would never buy a contract like that because of the dues situation until half way through the year.

 

[aceshigh73]

we purchased 2 resale contracts this summer. Both with 2023 pts (1 had all 2022). We paid the 2023 on both.
We recently put a couple of offers in, we were not paying the dues for 2023 being that it would have closed in Dec. (it had 2023 pts though) Now, I will admit I tried to change the tone of the email offers where I took the dues and made it part of the overall price I was willing to pay... Afterall, its just a $$ transaction. Dues can just make it messy negotiating. (Price per pt, plus dues = some $$, but what if i offered more $$ per pt and no dues?) I always offer to pay for our closing fees if Im the buyer. Sometimes this works, sometimes the seller is hell bent on getting refunded on their dues they paid.. In the end, its just a financial transaction.... unless its a HUGE contract and they might have to pay taxes on any gains they made.. Then maybe offer to pay the dues and lower the price per pt?

 

[AstroBlasters]

I’m wondering how people feel about offers with stripped contracts particularly with December use years.

We have a December use year. If a contract is stripped of the 2023 points, meaning the earliest I will get new points is December 2024, it seems silly to pay annual dues for the entire 2024 year.

If you buy direct Disney prorates your dues based on what time of year you bought in. Resale tends to have that be part of the deal much less frequently.

Yes I know you can borrow points a year ahead, but that really isn’t the point.

Am I missing something?

In principle I agree with you, but in the end it’s all about the bottom line.

 

[disneylandtour]

In the "comments" section I always write out specifically what my offer includes (closing, member fees, etc.). This becomes something to refer to later if the contract is draw up differently.