Annual Dues when buying resale?

[Bruce]

Can someone please explain how this would work?

For example:
If I were to purchase 200 points at BW available from August 2006 @ $85 a point, would I have to pay the 2006 Annual Dues, and if so, all of them or just 5/12?

And when would I have to pay the 2007 Annual Dues?

Many thanks,

Bruce

[tjkraz]

First thing to remember is that in a resale contract, EVERYTHING is negotiable.

Of course, rule 1a is that if you happen to negotiate a deal that is just TOO good, DVC will exercise ROFR. ;)

Normally if the points are unused for a given year, the buyer is asked to pay the maintenance. And that's ALL of the maintenance. It makes sense--if you're going to get to use the 2006 points, you should pay the 2006 dues, right? Just because the seller owned the contract for part of '06, he/she wasn't able to obtain any value from the points for that year.

That said, I have heard of people negotiating to pay a pro-rated share of the current year dues, so it's not unheard of. Probably depends a lot on how anxious the seller is and what sort of advice he/she is getting from the broker. BCV and BWV contracts have pretty high demand so I wouldn't necessarily count on being able to get the seller to back-down on too many of his/her own terms. They may just decide you aren't worth the trouble and go on to the next interested party.

2007 dues would be completely your responsibility. As soon as the contract changes hands, you assume the future liabilities. For instance, if you were to buy a contract that had its 2006 points used and even some or all of 2007 points borrowed, DVC would have you as the owner of record come January '07 and that dues statement would come in your name and be your debt to pay. Unless you make some accommodation with the seller at the time the contract changes hands (i.e. he pays you something NOW to reimburse for future dues), the burden is entirely yours.

[lllovell]

It is hard sorting all this out isn't it Bruce? Just remember that our website www.mouseowners.com will have a lot of the information you are needing, but do ask here if you aren't sure!!!

The annual dues page is here http://www.mouseowners.com/AnnualDuesOverview.html

That said...there is no real way of knowing if the dues have been paid up front or in a lump sum fashion if you buy a resale contract. This is one of the things that will need to be agreed upon between you and the seller and definately needs to be addressed. If the dues have been paid, the seller will probably be expecting you to forward to them the pro-rata share of the paid dues at closing. If they are being paid on a monthly basis, I assume you will simply pro-rate the dues payment for that month (either you will pay it directly to WDW if the seller hasn't paid yet and then the seller would reimb you any days they "owned" before closing in that month - - - or you will again be required to give that amount to the seller with the purchase funds). So, it will depend on the contract. If the dues have already been paid, it might be a good negotiating point for the reseller. If they are being paid monthly to WDW, then you will have no choice but to make the payments for the remainder of 2006 as you are the reponsible party at that point, but DVC doesn't care where the funds CAME from. I am not sure if you could go ahead and make one payment for the rest of the year once you set up monthly payments or not.

Some contracts will, as TJ mentioned, be divided based on points used (which seems much more fair to me). But I again think it will be a contract by contract thing.

The information on your 2007 payment is included in the above referenced link, but they are due Jan 15th with a 30 day grace period before interest and penalities can accrue.

Does this help?

Laura

[idratherbeinwdw]

Normally if the points are unused for a given year, the buyer is asked to pay the maintenance. And that's ALL of the maintenance. It makes sense--if you're going to get to use the 2006 points, you should pay the 2006 dues, right? Just because the seller owned the contract for part of '06, he/she wasn't able to obtain any value from the points for that year.


On the other hand, if you are negotiating for a "stripped" contract--one that has no points available for 2006--it wouldn't be fair for you to pay dues on points that have already been used by the seller.

[cruise-o-matic]

Also, I think if the seller is paying by monthly draft, Disney wants all the unpaid '06fees at closing. Then for '07, you can set up the draft.

Also, when you buy resale, if there is an overage for '06, that is credited to your '07 dues.

[Plutofan2]

Can someone please explain how this would work?

For example:
If I were to purchase 200 points at BW available from August 2006 @ $85 a point, would I have to pay the 2006 Annual Dues, and if so, all of them or just 5/12?

And when would I have to pay the 2007 Annual Dues?

Many thanks,

Bruce

On most resales the 2006 dues are split based upon who gets the 2006 points but everything is negotiable. The 2007 dues will be due in January 2007. You also will have the option to pay the 2007 dues monthly over the next 12 months starting in Januray 2007.