Who do you feel should receive the 2020 dues credit- buyer or seller?

[Ssplashhmtn]

Final Update:

First of all- thank you all for your extremely valuable and interesting input! This has been a very interesting situation for me, and I really enjoyed and appreciated everyone’s point of view.

In the end, the closing agent has let me know that a new closing statement will be drafted with the MF credit removed. The issue is 100% that a monetary amount cannot be added to a payable after the contract has been signed by both parties and has passed ROFR. If the sellers had requested that this credit be a part of the final amount prior to contract signing, it would have been fine- but, since this was an amount outside of any contracted obligations, they simply cannot ask for it “after the fact”.

So- lesson learned. If you are selling and want this credit, please be sure to mention it prior to contracts being generated so that it can be explicitly spelled out as part of the sale.

I know this is becoming an outdated topic now, but I have a contract that is just now closing from late 2020, and this same issue has come up. Would you mind sharing what closing agent came to the above conclusion?

 

[sethschroeder]

I know this is becoming an outdated topic now, but I have a contract that is just now closing from late 2020, and this same issue has come up. Would you mind sharing what closing agent came to the above conclusion?

What does your contract say? Are the dues already paid for all of 2021 or are they monthly paid? Also does the contract just state you pay 2021 MFs or does it say you pay $x.xx?

 

[Ssplashhmtn]

What does your contract say? Are the dues already paid for all of 2021 or are they monthly paid? Also does the contract just state you pay 2021 MFs or does it say you pay $x.xx?

2021 maintenance fees will not be paid monthly. I am not sure if the 2021 fees have already been remitted to Disney by the seller, or if they will be remitted by the closing agent out of closing proceeds. In either case, I (the buyer) owe those fees at closing. The question I guess is how are “2021 maintenance fees” defined technically (that is, should they be reduced by the credit, or not). Here is the only mention of the topic in my contract:

“Buyer is responsible for maintenance fees beginning January, 2021. Seller to be responsible for 2020 maintenance fees, as well as any late fees assessed.”

 

[Evita_W]

The credit should go to whoever is paying the 2020 dues.

 

[sethschroeder]

The credit should go to whoever is paying the 2020 dues.

Its not a rebate its a credit for paying 2021 dues. Its applied to the 2021 dues bill it is not cut back to the owner. If you forfeited the contract you wouldn't be receiving money back from Disney I doubt.

Normally this money is put in a fund and held in this case they are simply choose to more actively provide relief in the next years MFs.

Edit:
Just looked again its an operating credit towards 2021. Credit typically indicates future payment retirement not money you get back based on previous payments which would be a rebate or refund.