I don't get it... Maintenace Fees & Resale Contracts?!?!

[Lisa]

I've been a member for three years now and have learned most of the ins and outs of the DVC system. I've been wanting and waiting to buy a smallish contract for over a year (need to wait until our finances were in order). Now it's time. I'm ready. I think I understand what's involved. Called up a resale agent and ended up having an argumentative conversation about how the buyer should pay the current years maintenace no matter what the UY or point situation. :( I really didn't expect this. I just wanted to understand their stance and have them understand mine. It could have been my fault, sometimes I'm not very good on the phone. But it made me not as happy or excited about buying this purchase that I've been thinking about for a year. Could someone please tell me if I'm totally wacked? .. or what makes their way of thinking equitable to the buyer and seller?

Example: A Dec. UY contract with no point available until Dec. 06, then the full allotment.

resellers thoughts: You are getting all of the '06 points you should pay all of the '06 dues.

My thoughts: Maintenance Fees are billed in Jan and are based on the calendar year. This does not in most cases match up with the UY of a contract. With the contract above most of the '06 calendar year is in the '05 UY. Why would the buyer be considered responseable for 11/12ths of the '06 maintenace fees when there were no points available ('05 points)?

This is as clear as mud right?

Dec '05 - Nov '06 UY,
1/12 ths of '05 maintenance fees
11/12 ths of '06 maintenace fees
Dec '06 - Nov ' 07 UY
1/12 ths of '06 maintenance fees
11/12 ths of '07 maintenace fees

Since there are no Dec. '05 points and all Dec. '06 points the buyer should only be responsible for 1/12 of the '06 maintenance fees

Disney prorates the maintenance fees when you buy from them even though you often get the full allotment for what is left of the UY.

So what am I missing? :confused:

[ghost1000]

It's tough when it's a December Use Year, but from what I've seen it's standard practice for the buyer to pay the entire year's maintenance fee on a resale. If you get a contract with a December Use Year you can always borrow points to make a reservation before December.

Maybe the seller will work with you and pay part while you pay part.

If the reseller is TSS, call and speak to Tom. He can probably explain it to you since it's his company.

[Colorado Belle]

When you are dealing with Disney, the maintenance fees are indeed prorated as you stated.

With resales, you are hearing the 'usual way to do business' from the realtor.
But any contract you write is yours to write...and legally, it must be presented to the seller. I, for one, did NOT pay maintenance fees for the year of my contract.
I offered the asking price (actually .50 cents more per point to help pass ROFR) and then said seller to pay maintenance.

If you have a contract in mind, just write your offer how you want it presented.
If the Realtor thinks he can get his client more, he might advise the client to wait...but especially if you are offering cash, I think you have a good chance of it being accepted or countered.

Good Luck!

[Blue&Gold]

We have a Dec UY and on our initial resale contract we paid the "current year" dues, but it didn't cause me great pain because we also were getting ALL of the previous year's banked points.

We added on from Disney later that same year (in October) and only paid 1/4 the dues on the new points.

When I look at any resale contract, I just tack on another $4-$6 per point to account for dues and closing costs.

But, like Belle wrote, it's only an offer.

[Lisa]

If there were current UY points involved of course I could see paying the associated maintenace fees.

The resaler didn't sound open to different offers on the maintenance fees. If there was a statement of "you can always offer what you think is appropiate" then I probably wouldn't be this confused. I still think they should have the standard pratice of prorating the MF for all contracts. ....but C'est la vie. Just not the type conversation I was hoping to have. I was a bit nervous because I don't make decisions on spending money easily.

[withdisneyspirit]

Lisa, I have a December UY also and I was expected to pay the current years dues for 04 points as well. Look at it this way, when the last year of dues comes up, everyone will pay and you will get to use that last years points just like everyone else, although you will probably have to borrow them to use them up.

That said, I do not know who you are dealing with, but real estate is negotiable, period!!! I agree with CB, you have the right to make an offer!

[Deep-Thots]

I guess I'm in the minority here, but I think that if you rather than the seller is going to be the one to use the points, then you should have to pay MF on the points. After all, from a purely logical standpoint, why should the seller pay for something s/he is not going to have the benefit of using?

For a small contract especially, I don't think it's worth possibly losing it to someone who, like me, would be willing to pay the extra $200 to be able to get the contract and use the points.

JMO. YMMV.

Kim

[Lisa]

Kim, I guess that is actually my point, the one who gets the points should pay for the MF's in the correct proportions. I had always assumed this is what would happen but recently learned it is common practice for the resellers not to prorate the MF on the contracts, and assume that if one gets the '06 UY points one should pay the '06 calendar year MF. When it gets to the Sept., Oct and Dec. UY's it is a larger inequality between the UY and calendar year.

[withdisneyspirit]

But Lisa, that is what I was saying. The points are all still there for you to use. The Seller has left them intact for you. So, if you pay, at least you don't have to feel taken advantage of :sunny:

[Lisa]

You know I haven't looked into what happens at the end of the contract only the beginning. Is it in the POS? If it is true that you get the last years points with only paying one months MF for them, then that doesn't sound too bad. hummmm... but would Disney really do that?

[granny]

You know I haven't looked into what happens at the end of the contract only the beginning. Is it in the POS? If it is true that you get the last years points with only paying one months MF for them, then that doesn't sound too bad. hummmm... but would Disney really do that?
I wouldn't justify anything based on what might happen in 2042. Frankly, I'm not sure that Disney has already figured that out.

I do know that if you're dealing with a broker who will not take your offer forward, I'd find another broker to deal with. It is your offer to make, not theirs, and you can put whatever you want into it.

Now, if the buyer has already told the broker that they are firm on not paying the MF for 2006, then the broker should state that to you. If not, I wouldn't deal with that broker.

There are lots of resale contracts out there. Be patient and buy the one you are happy with. :)

[mousehouse]

I couldn;t stand the idea of paying MF for a whole year when they should have been paid in jan(our UY is aug)
I made my offer with the mf prorated..so, they paid Jan-aug and we paid aug -dec
We offered exactly what they wanted in price..which even now seems low, but passed rofr, so i won;t argue. i am happy, got all my points, prorated MF and a reasonable price.

[Dennyha]

Lisa,
I agree with your line of thought. If the points are available to use throughout the '06 (like from a Dec '05UY), then the buyer should pay the MF, but if they are not available, and you would have to borrow from the '06UY, then the seller should be responsible for the MF. After all, just because she used the points early in here UY does not mean she should be clear of the corresponding MF.

I like the way that Disney prorated the MF. Seems more than fair.

[DVCByResale]

Lisa,

Sorry to hear the conversation wasn't all you had hoped for, sometimes our expecations can create disappointments and change the tone of something we hoped would be more fun. I'm surprised to hear you say the broker didn't say they would "present offers any way you choose to make them" - I try to make that part of my normal dialogue.
As mentioned, you can always make an offer any way you choose, regardless of the "normal" - which would be as described in your first email.
;)

Best regards,
Shontell

[Lisa]

First I must make it clear. I believe the broker I first talked to did offer to present any offer I wished to make. I don't feel they did anything truely incorrect in their conversation. It was more the tone of the conversation. It was adversarial. I wanted a discussion on what would be the most fair way to have the buyer/seller pay for the MF and an understanding the customary way of business (and why).

Perhap it is sort of akin to someone going on one of the larger forums and innocently asking if they could have their family with 4 kids toting blow up matteresses in a studio. Perhaps it's a hot button topic that I wasn't aware.