Who should pay maintenance fees for 2016 December

[yaknyeti]

I am considering purchasing a DVC property they currently have 99 bank points for 2015 and 230 Point coming this December for 2016 and Seller wants me to pay for 2016 maintenance fees should I do that because 2017 dues are coming up soon as well.

 

[Pigletpal40]

Those should have been paid last January/February. If those (dues) haven't been paid yet, the acct. is most likely on hold where no points may be used until it is brought up to date. Maybe a headache. I'd do some research first. Unless they are trying to recoup last years fees, which you are not responsible for either.

 

[Disney Dad ADL]

There is no "should" or "shouldn't " per se. It is all negotiable and part of the overall deal. We purchased in May with all 2016 and some banked 2015 points, and the seller paid the 2016 MFs because that was our offer.

However as PP mentioned, 2016 MFs should have been paid January 2016. You would actually reimburse the seller if you were to pay 2016 MFs.

Edit: Most usually will say that the buyer should pay 2016 MFs if the 2016 points are intact, however I have heard the argument that because Disney charges MFs based on calendar year, then in theory the buyer should pay MFs by calendar year. The reasoning behind this is that when you buy a contract directly from Disney, your MFs are prorated based on calendar year. If you were to buy a contract right now, whether you bought a February UY or a December UY, your MFs would be exactly the same. MFs are prorated based on remaining months in calendar year 2016, so you would pay about 2/12ths of it. However, the Dec UY would get all 2015 AND 2016 points, while the Feb UY would only get 2016 points. So you can see Disney charges MFs independently of the actual points you get.

I don't know which is "correct ", although ultimately as I said I don't know that it matters. Everything gets converted to a $ lump sum at the end.

 

[LynJ]

We're getting all of the 2016 points in our contract, and we offered to reimburse the seller for the fees since we'll have the use of them. Just a matter of negotiation.

For a December UY, I'm not surprised the seller might want to be reimbursed, since the 2016 points haven't been awarded yet.

 

[yaknyeti]

I am just going to reimburse the seller for 2016 points I feel that I am buying it and it is such a good price thanks for everybody's help

 

[erionm]

Keep in mind that maintenance fees are based on calendar year, not use year.

 

[jscottnc]

December UY can be confusing since December 2016 points cover most of calendar year 2017. I have two December UY contracts and I can tell you that the member dues are not due until January the following year (a month later). I could see paying the dues for the December 2015 points (99) that are banked. Disney will send you a bill for the 2016 UY points.

 

[KAT4DISNEY]

December UY can be confusing since December 2016 points cover most of calendar year 2017. I have two December UY contracts and I can tell you that the member dues are not due until January the following year (a month later). I could see paying the dues for the December 2015 points (99) that are banked. Disney will send you a bill for the 2016 UY points.

Mostly that's it but I'd change the last explanation a bit. The first bill the OP would receive would be 2017. The 2016 dues that were to be paid back in Feb 2016 would have covered 11 months of the 2015 points and 1 month of the 2016. The 2017 dues are actually going to cover 11 months of the 2016 points and 1 month of the 2017. Paying the 2016 dues would be overpaying because more than half of the 2015 points have been used - which is the majority of what it covered.

If anything I'd negotiate and at best pay a pro-rated amount of the 2016 dues while considering that is actually paying for 99 2015 points that have already been banked so have a shortened life.

 

[yaknyeti]

They counter offered with $74.50 and no reimbursement for maintenance fees 2016 at animal kingdom. I pay closing cost... does that sound like a fair deal?

 

[oliver123]

How many points is the contract for?

 

[yaknyeti]

230 points

 

[disneynutz]

There is a difference between what's fair and what's a deal. It all depends on both parities agreeing on the terms. If the contract is something that works well for you, UY, points, resort, etc., then you might pay more. If it's a resort with few listings, you might pay even more.

Bill

 

[Matty B13]

$74.50 for AKV is a good deal. You will want to look at the ROFR thread, page 1 for current resale pricing.

 

[CarolMN]

To sum up: Consider all the costs to buy the contract. (It's all negotiable in a resale transaction). If the total works for you, it doesn't much matter how the pieces get put together. JMHO. YMMV.

 

[Matty B13]

I used an excel spreadsheet to enter in all the options to get my total cost, total cost per point. Make sure to include the closing costs.

 

[Dean]

I am considering purchasing a DVC property they currently have 99 bank points for 2015 and 230 Point coming this December for 2016 and Seller wants me to pay for 2016 maintenance fees should I do that because 2017 dues are coming up soon as well.

I agree to look at the overall picture but you need to understand what you're getting and what you're not. If you reimburse the seller for the dues paid this past January, you'll be overpaying on the contract in that area. The dues paid this past Jan are for the Calendar year and not the Use Year. That means they cover 11 months of the 2015 UY & 1 month of the 2016 UY. Then in Jan you'd pay for the 2017 Calendar year which would include 11 months of the 2016 UY. Given you're getting 1 month of points covered by the dues you'd pay and the 99 banked points, a "Fair" deal is you'd pay about half or slightly less. Let's look at it as if you bought this same contract from Disney what would you pay. With all 2015 UY points banked to 2016 and all 2016 points, you'd pay for 3 months of dues for the 2016 calendar year. If the deal was otherwise to my liking, I'd likely counter with reimbursing half the dues and the statement that "since dues are paid on a calendar year not UY basis". The thing you have working against you is that many of the brokers INCORRECTLY take the position that "you get the points you pay the dues" so they may give the seller incorrect information in this regard.

 

[yaknyeti]

Okay here is the latest deal it's pretty much all the same $68 a point and reimburse the seller for the 2016 points that's coming this December so with that said I am in it for $74.42 and I have a contract that has 99 bank points for 2015 and by the time my close I would already have 230 points from the December 2016

 

[Up-n-Up]

If I'm reading this correctly and you are NETTING 230 points at AKV for $74.42 a point, that's an outstanding deal. If you pass on it, let me know and I'll sign up lol. I have my doubts after a few months of research that this one would make it through ROFR at that number with that many points coming, but will be awesome if it does!

 

[mustinjourney]

If I'm reading this correctly and you are NETTING 230 points at AKV for $74.42 a point, that's an outstanding deal. If you pass on it, let me know and I'll sign up lol. I have my doubts after a few months of research that this one would make it through ROFR at that number with that many points coming, but will be awesome if it does!

Agreed. You're practically stealing at this point. Snatch it up.

 

[ameliahyde]

We just negotiated a contract for BCV where we have a December UY and all of the 2015 points coming, as well as the 2016 points. We agree to reimburse the seller for the 2016 MF's. It was a negotiation, and though we did not want to initially we eventually agreed to give the fact we were getting the points from 2015 and 2016 - seemed fair enough. It really just depends on the negotiation and what you want and are willing to pay...