Use Year Dues When Purchasing Resale?

[Chocobo_Mickey]

Hi there,

I have been doing research on DVC Use Year, the resale process and dues. I had a couple of questions though which I haven’t seen clearly answered.

1. If I am purchasing a resale contract with an August use year, 0‘22 points, and full ‘23 points, am I expected to pay the full dues for 2023, or is it reasonable to offer to pay the dues for 5/12 months (as I wouldn’t have points to use until August)?
2. Are dues typically collected in January for the upcoming calendar year, the previous calendar year, or something else?

I’ll throw in one more question. When I make an offer on one of these brokerages, am I randomly assigned to an agent? If so, would it be better to go through the posts on this board and reach out to a specific recommended agent?

Thanks!

 

[sethschroeder]

Disney should be paid the dues for 2023 prior to you getting the contract if I remember correctly. That can either be from you or someone else. The 2024 dues can also be from you or credited by the seller if you want.

Its all a negotiation to the lowest price.

Any past years dues like 2022 should have already been paid but again the seller may say if you are getting the points they want you to pay those dues.

 

[CarolynFH]

Hi there,

I have been doing research on DVC Use Year, the resale process and dues. I had a couple of questions though which I haven’t seen clearly answered.

1. If I am purchasing a resale contract with an August use year, 0‘22 points, and full ‘23 points, am I expected to pay the full dues for 2023, or is it reasonable to offer to pay the dues for 5/12 months (as I wouldn’t have points to use until August)?

Dues are assessed and paid on a calendar year basis, with no relation to UY. If you were buying direct from DVD, you'd be assessed prorated 2023 dues from the date of signing the purchase contract. However, in resales, it's negotiable. I certainly wouldn't expect to pay Calendar Year 2022 dues no matter what; whether I reimbursed the seller for Calendar Year 2023 dues or a portion thereof (5/12, as you say) would depend on purchase price and would be written into the purchase contract.

2. Are dues typically collected in January for the upcoming calendar year, the previous calendar year, or something else?

Member fees for each calendar year are due on January 15 of that year and are considered late after February 15 of that year. So dues for calendar year 2023 should have already been paid or be set up to be paid monthly by bank draft, so that as of tomorrow they'd be paid through March 15 at least.

 

[Sandisw]

Dues are calendar year and not based on the UY. When buying direct, is it prorated based on date of purchase.

Resale it’s all negotiable but if one is getting the UY of points that matches calendar year, they usually expect one to pay.

But, I based it on how far into the year I am and what points are there. In your examplw, I’d probably pay all of 2023 because it’s only March. Same contract in July, I’d ask to split it.

Basically, I look at it for use that year and if there were no points for the bulk of the year, then I negotiate. Buying a contract like you listed that had all its 2022 banked and 2923 points and beyond, would pay full amount even if it were July.

 

[beldred]

If you are getting the full points for the year, as long as it's not past the banking date, it's reasonable to be expected to reimburse for them. If some of the points have been used, obviously you should not pay for them.

 

[KeriBlujeans]

Here's something I'm trying to wrap my head around: December Use Years and the last year for the contract. Basically, when we get to 2042, etc, what happens to those December points? Is the contract expiration date the last year points are awarded or the last year points are useable?

I'm looking at a resale December UY contract, which is asking buyers to pay 2023 dues, which makes sense because the points don't hit until after the contract would change hands. I'm just trying to make sure there's not a "lost" year that I'm not accounting for.

 

[Sandisw]

Here's something I'm trying to wrap my head around: December Use Years and the last year for the contract. Basically, when we get to 2042, etc, what happens to those December points? Is the contract expiration date the last year points are awarded or the last year points are useable?

I'm looking at a resale December UY contract, which is asking buyers to pay 2023 dues, which makes sense because the points don't hit until after the contract would change hands. I'm just trying to make sure there's not a "lost" year that I'm not accounting for.

Resort ceasing to exist January 31st of 2042. Everyones last year of points will be 2041. So a Dec UY will have two months to use them.

But no one knows what DVD might do in those last few years…lots Of options. Changes to banking and borrowing rules, changes to timeline for non home resort bookings, trades to use DVDs other points at other resorts in 2042, etc.

But, barring that, 2041 will be the last year to use the points.

 

[CarolynFH]

Here's something I'm trying to wrap my head around: December Use Years and the last year for the contract. Basically, when we get to 2042, etc, what happens to those December points? Is the contract expiration date the last year points are awarded or the last year points are useable?

I'm looking at a resale December UY contract, which is asking buyers to pay 2023 dues, which makes sense because the points don't hit until after the contract would change hands. I'm just trying to make sure there's not a "lost" year that I'm not accounting for.

Sandi speaks truth above. Some of us like to say that the people who will make those decisions are still in college or grad school now, or I guess just beginning their careers. I don’t think anything will be announced for another 15 years or more.

When DVC was developed in the late 1980s, a points-based system (not to mention the concept of Use Years) was very unusual for timeshares, and I don’t think any of the people who were there at the time gave much thought to exactly how the system would wind down 50 years later.

 

[Genie+]

Our BWV 2042 has Sept UY. Who knows what will actually happen. For now I’m just figuring on 5 months to use 2041 points (maybe 17 months if borrowing is allowed then). For dues it might make sense to send us a 13 month bill for Jan 2041 so it also includes the month of Jan 2042.

 

[Cfabar1]

Nobody knows how it all will turn out in the end. And I think there’s no guarantee what happens in 2042 will be indicative or a guarantee of what happens with future resorts.