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Bluegreen Double Billing upon Transfer (Points)?

timesharepro

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Coming here to see if anyone else has seen this as I have been selling timeshares for the past 11 years and this is the first time it has come to light.

A buyer of resale BG points received a bill for prorated maintenance fees for May through October. The account they owned prior was purchased directly from BG and is a sales type Y (billed in October, due in November) with an earn month of February. The contract they purchased is a sales type A (Billed 30 days prior to earn date) with a earn month of February. The previous owners of the contract purchased paid the maintenance fees in full, so there shouldn't have been anything due until February 2019.

Bluegreen says that regardless if the previous owners paid the maintenance fees in full, upon transfer the new owner is responsible for a prorated amount because they now have use of the points.

To me this sounds like double billing. If the previous owner also has use of those points then I would find it fair, but they don't.

Anyone else seen this?
 

wontontx

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Coming here to see if anyone else has seen this as I have been selling timeshares for the past 11 years and this is the first time it has come to light.

A buyer of resale BG points received a bill for prorated maintenance fees for May through October. The account they owned prior was purchased directly from BG and is a sales type Y (billed in October, due in November) with an earn month of February. The contract they purchased is a sales type A (Billed 30 days prior to earn date) with a earn month of February. The previous owners of the contract purchased paid the maintenance fees in full, so there shouldn't have been anything due until February 2019.

Bluegreen says that regardless if the previous owners paid the maintenance fees in full, upon transfer the new owner is responsible for a prorated amount because they now have use of the points.

To me this sounds like double billing. If the previous owner also has use of those points then I would find it fair, but they don't.

Anyone else seen this?

Yes, Right or Wrong .... The Sales A Contract now dominates billing. The owner will always be billed in Jan ahead of points earn on the Sales type A contract anniversary. The Upgrade Prorate Fee is then billed to move (push out) the original contract billing date, Sales type Y in this case, from October to Jan or 3 months worth of MF of the Sales type Y contract only. There should not be a prorate for the Sales type A contract. The prorate fee should only be for the incremental rate for TF E, $0.0586/point and not a partial of the base fee. I'd expect the Prorate fee to be #Points of Original Sales Type Y deed X $0.0586 X 3/12. Also be sure that the owner is not billed the club dues twice. BG is notorious for this, but it can be corrected by sending BG a request to correct via the contact us feature on the website.

Worth noting, this prorate fee can also be a credit. If an owner has a Sales type A contract, say Billed in June and in say March purchases a new contract that is billed in October, then they are right to request a credit of 4 months worth of fees as well as 4/12 worth of base fee (previously paid by selling owner). In this case, the net is zero as the billing gets pulled in 4 months, for which the credit is assigned, i.e. you are paying the MF 4 months earlier than when the purchased contract should have paid. Conversely, if the purchase occurs after the Sales type A billing date of June, so say in Aug, then there will be a charge of 8 months to push out the billing from Oct to June of the next year. Why that prorate charge does not happen at the billing date of October vs in August when the points are purchased, giving BG two months of interest on your fees, is up for discussion. I guess all things lean towards BGs advantage.
 

Dean

TUG Review Crew
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Coming here to see if anyone else has seen this as I have been selling timeshares for the past 11 years and this is the first time it has come to light.

A buyer of resale BG points received a bill for prorated maintenance fees for May through October. The account they owned prior was purchased directly from BG and is a sales type Y (billed in October, due in November) with an earn month of February. The contract they purchased is a sales type A (Billed 30 days prior to earn date) with a earn month of February. The previous owners of the contract purchased paid the maintenance fees in full, so there shouldn't have been anything due until February 2019.

Bluegreen says that regardless if the previous owners paid the maintenance fees in full, upon transfer the new owner is responsible for a prorated amount because they now have use of the points.

To me this sounds like double billing. If the previous owner also has use of those points then I would find it fair, but they don't.

Anyone else seen this?
That's my understanding of the way sales type A works compared to Y. It essentially changes when your fees are due and I believe it does so on all your points in trust fund E if you own already. It's not a big deal if this is a new membership or you own sales type A already but if you have sales type Y and buy sales type A, it can create additional fees for that year on the points they already own because it moves when their fees are due. Recently someone was going to give me a contract and pay the transfer fees. Those free points would have cost me several thousand dollars due to this issue. The way I look at it, which is somewhat simplistic for Bluegreen is basically like DVC. DVC charges fees on a calendar year basis so dues paid this past April for my December UY were for 11 months of the 2017 points and one month of the 2018 points NOT simply for the 2018 UY points. This makes the "you get the points you pay the fees" position blatantly and absolutely incorrect with a DVC purchase.
 

timesharepro

TUG Member
Joined
Mar 26, 2008
Messages
273
Reaction score
82
Points
388
Location
Bozeman Montana
Yes, Right or Wrong .... The Sales A Contract now dominates billing. The owner will always be billed in Jan ahead of points earn on the Sales type A contract anniversary. The Upgrade Prorate Fee is then billed to move (push out) the original contract billing date, Sales type Y in this case, from October to Jan or 3 months worth of MF of the Sales type Y contract only. There should not be a prorate for the Sales type A contract. The prorate fee should only be for the incremental rate for TF E, $0.0586/point and not a partial of the base fee. I'd expect the Prorate fee to be #Points of Original Sales Type Y deed X $0.0586 X 3/12. Also be sure that the owner is not billed the club dues twice. BG is notorious for this, but it can be corrected by sending BG a request to correct via the contact us feature on the website.

Worth noting, this prorate fee can also be a credit. If an owner has a Sales type A contract, say Billed in June and in say March purchases a new contract that is billed in October, then they are right to request a credit of 4 months worth of fees as well as 4/12 worth of base fee (previously paid by selling owner). In this case, the net is zero as the billing gets pulled in 4 months, for which the credit is assigned, i.e. you are paying the MF 4 months earlier than when the purchased contract should have paid. Conversely, if the purchase occurs after the Sales type A billing date of June, so say in Aug, then there will be a charge of 8 months to push out the billing from Oct to June of the next year. Why that prorate charge does not happen at the billing date of October vs in August when the points are purchased, giving BG two months of interest on your fees, is up for discussion. I guess all things lean towards BGs advantage.


Thank you very much. That clears it up for me.
 
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