? about anuual dues in resale contract negotiations
 

I'm about to make an offer on a resale contract (yippeeee!) but I honestly can't figure out how to address the matter of who should be responsible for the dues? If a contract has a Sept YU with all points available for 2013, weren't the dues for those points already paid for by the sellers in January? Why are they being paid again? I thought annual dues were due in Jan regardless of use year. Is Disney getting double the dues? Or is the money for dues going to the sellers to reimburse them because they have already paid them? Help sorting these things out would be appreciated!

The money is going back to the seller! If the contract has no 2012 points I would ask seller to pay the 2013 maint fees- they may not accept but it never hurts to try:)

The neutral position for that contract is you reimburse the seller for 1/3 (4 months) of the fees paid this past Jan. Of course it's all negotiable so anticipate this might be an issue where the seller wants extra.

While Dean is technically correct, his understanding of how maintenance fees are paid with respect to UY and calendar year is not a common understanding among DVC owners. Therefore, I think your best bet would be avoid that discussion altogether. It is safe to assume that the seller will want the fees reimbursed and that you are not going to be able to convince them that what Dean has stated above is correct.

So the approach I would recommend is that you figure out the dollar amount you want to pay per point, then subtract $5 from it AND say that your offer does not include reimbursement of the maintenance fees. That way if the seller insists on fee reimbursement you still hit your target, just in a different way. And if the seller agrees or offers to split fees, you come out ahead. Good luck with your offers!

I had posted on this topic a few weeks ago questioning why TTS would list a full year's worth of MF's on a Dec UY contract with no '12 points remaining. Technically, I should be paying 1/12 of the '13 MF's since my points don't technically start until 1 month left in the calendar year. I would think that TTS would "coach" sellers through the math.
Anyway, I agree -- just make sure you're comfortable with the total package cost inclusive of the points, MF's, and closing costs, and it doesn't matter were the dollars are allocated to.

The major DVC resellers are part of the problem. They take the incorrect stance that you get the points you pay the fees.

The prevailing "wisdom" is that maintenance fees and use year are tied together. Now we know this not to be true. But it is very easy to say that if you have points coming in 2013 (regardless of use year) then you pay the 2013 fees. That is TTS's policy.

I agree. This is the key - know what you are willing to pay in total and then it doesn't matter how the seller wants that amount allocated. :teeth:

This is how we approached things when we bought BWV a few years ago and did the same with our newest offer for BLT. We bid on one that didn't include 2012 points--Dec UY and went I with a lower price per point but offered the MF's. it was countered but at the same time, another one came available that had all 2012 points. We adjusted based on the ability to rent or transfer those points and recoup some of the buy in cost. In the end, the bottom line is what we were happy with!!!

Don't be discouraged to make the offer as you see fit, but also don't be surprised if it is rejected. Price per point will draw attention and seller will take the best offer. Good news is there is a few opportunities out there. Good Luck Hope you prevail.