Who Pays Current Year's Dues on a Resale?

[mocpe]

I just made a bid on a BW resale and was somewhat surprised to learn that I am obligated to pay the 2001 dues, even though the use year starts in October and there were no points remaining for the current year. Is this standard practice or is it unique to the timeshare outfit I am dealing with?

 

[robinb]

If no points have been borrowed into 2000 from the October 2001 allotment, then it would make sense that you pay dues for this year which is 2001. You will be using those points and should pay for their dues.

If all the 10/2001 points have been borrowed and used you should not pay any dues.


-- Robin

 

[BobBrazeal]

I've always felt that the payment of the current year dues is negotiable just like the price per point and closing costs. You can pay them, you can ask that the seller pay them or you can split them. I say it is up to you to decide what you think is fair considering the use year, the date that you close, the cost per point and the points available, banked or borrowed.

<img src=http://www.wdwinfo.com/sites/brazeal/visits_garamond.gif>
<img src="http://www.wdwinfo.com/sites/brazeal/rightdvcdis20.gif" width="80">

 

[Cap]

You have no obligation to pay the dues. It's all in what you negotiate when you make the offer on the resale. I've even seen a few offers described as "net" offers. These were ones where the potential buyer said "my offer is that I will write a check for $xxxx in exchange for your contract. That $xxxx is all that I will pay and includes any closing fees, required legal fees, next day document delivery fees, dues, etc. You, Mr. Reseller, figure out what the seller would net from my offer and determine if he will accept it."

Resale conditions and motivation vary. Sometimes the sale is from an estate, or because of a divorce, and the seller is really motivated. It's just like buying a house - virtually everything in the deal is negotiable.

Cap

 

[sparkysfriends]

I bought my OKW resale in June 2000 for 300 points with a Sept. use year. All of Sept 2000's points were intact. In addition all 300 of Sept. 1999's points had been banked. I had no qualms about paying the year 2000 dues. It seemed only fair.
If the 2001 points are all still available on the resale you are bidding on the seller may not want to bend on this issue (especially if there are also banked points involved). I don't think I would if I were the seller. However, if there are no 2001 points still available, Iwould never pay the dues on something that is not mine to use. It is both unfair and illogical. If there are only a portion of 2001 points still available I would offer the seller the same percentage of the dues that there are points available for. You could tell the seller that you don't want to pay any of the dues, but while I feel that you should try to make the best deal possible for yourself, I also try to be fair and equittable about these things.
It is still amazing to me that in the few short months since I purchased my resale, my purchase went from being a great deal to an incredible steal!

Good Luck-
Alyson

 

[kem330]

Everything is negotiable. You need to do what you're comfortable with. It is a muddy issue since dues are based on the calendar year and points are based on use year. I believe if you bought from Disney, they would prorate the dues for this year. Also you would be receiving year 2000 points(and not paying dues on those). So I would make some adjustment because you are not getting the same value. Feel free to email me- we just bought a BW resale 2 months ago and I'd be happy to share more info with you. What reseller are you using?

 

[Dean]

Not only is it negotiable, if you pay the full dues for this year, you'll be paying double on 9 months of the dues. The reason is that DVC charges dues based on a calendar year,not use year. The very first year of the contract they prorate it to get you on the cycle like everyone else. Therefore when the seller paid the dues in Dec, they paid for 9 months of 2000 points and 3 months of 2001 points. And in Dec, 2001, you'll pay another 9 months of the 2001 points along with 3 months on the 2002 use year. I'd make it part of my offer to pay no dues but pay the closing. IMO, the dues can make or break a deal, especially when there are no current points. Whether it's a deal breaker depends on the price you're getting and whether you're going to buy directly from DVC if you don't buy resale. When we bought it was buy resale at good prices or walk away so we help out for a very good deal.

Dean