you guys really helped me, now here is one more

[3kidz4dis]

Thanks so much everyone, you really helped me in my last thread. Now I got my contract (December use year banked points from 2004) and it says that "Buyer is responsible for the annual dues on 150 points for 2005 allocation" which I understand however, why am I paying those now when my use year doesn't start until December 2006? (seller is paying on banked points for 2004). There is something else on this contract that says the current years assessment is payable on or before January 31st. Is that why I have to pay them at closing?

Also, I used to be a mortgage banker and I feel title insurance opposed to just a title search is unnecessary in this situation. Does anyone have any thoughts regarding this?

Thanks so much again!

 

[Chuck S]

Dues and taxes are based upon calendar year, and are due in mid-January (or when checking into a DVC resort...whichever is earlier), considered late after, I think, Feb 15th.

You can also have them taken out from a bank account monthly at no additinal charge.

 

[mrsR123]

Two things are happening here with regard to membership fees/dues. One is that we pay dues based upon the calendar year regardless of use year. The second is that since those dues are payable by January 15th, or at least by february 14th to avoid a penalty, they should have been payed by your seller by now.


I'm sorry, but I can't help with the title stuff.

 

[Granny]

Thanks so much everyone, you really helped me in my last thread. Now I got my contract (December use year banked points from 2004) and it says that "Buyer is responsible for the annual dues on 150 points for 2005 allocation" which I understand however, why am I paying those now when my use year doesn't start until December 2006? (seller is paying on banked points for 2004). There is something else on this contract that says the current years assessment is payable on or before January 31st. Is that why I have to pay them at closing?

Also, I used to be a mortgage banker and I feel title insurance opposed to just a title search is unnecessary in this situation. Does anyone have any thoughts regarding this?

Thanks so much again!

I must be missing something. You have banked points from 2004, and now must pay for your 2005 points, which you will be getting in December.

Your 2005 UY begins in December 2005, not December 2006.

 

[ColoradoBelle1]

I too think that titile insurance is a joke for point resales....but this is just another way to make money with closing cost fees.
I just learned that the HH properties need to be closed in South Carolina and by a LAWYER....@ 700 again, just another way for a lawyer to bill.

Maybe you could play on your past tense mortgage banking...and call an Orlando title company with a question: I was a mortgage lender (truth as in past tense but worded to sound present) on a DIsney DVC and was wondering about the necessity for title insurance. Can that be waived with buyer signature and how much money does it save?

 

[CarolMN]

I too think that titile insurance is a joke for point resales....but this is just another way to make money with closing cost fees.
..(snip)....

I'm not so sure I agree - unless you are OK with "self-insuring". Some banks/mortgage companies require title insurance if you are financing, so you may not even get to decide to skip it.

DVC has been around long enough for resales to come up that were due to divorce, death &/or bankruptcy. Some of the contracts have changed hands more than once. Just as with any other real estate interests, there can be title problems when those things are part of the picture.

If a problem does come up, you could lose your DVC - if you are willing to risk that, then you don't need the insurance. You have to weigh the risk vs the cost of the insurance for each situation (DUH!).

Personally, I would risk going without title insurance for a small investment that is likely to lose value (most timeshares), but not for a larger one that is actually still increasing in value. JMHO. YMMV

Best wishes -

 

[Beca]

On the maintenance points issue. DVC requires when someone purchases a contract via resale, that the 1st year's maintenance fees be paid at the time of closing. So, you are paying for your 2005 maintenance fees when you close. You are not paying for 2004 points (the owner paid those last year). It is really confusing when you are dealing with a Dec. uy, because maintenance fees runs on a calendar year. So, it seems like you are paying main. fees for your Dec. '04 points in '05, since those are the points you are "playing with" right now.

It is much easier to "pretend" that you have a Jan uy, when you are figuring out what is going on...write it down, and then switch to your uy. Everything else on the paper will stay the same....it's just a December uy thing. But, everything on your contract sounds on the "up and up" to me.



Beca

 

[Dean]

Since DVC has limited finance options, if there's no loan through DVC, there's essentially not risk from a financing standpoint. The only real risk would be that of a divorce situation, something one should be able to ascertain without paying for title insurance.