EOY Maintenance Fees

[Politico]

So, I am negotiating the purchase of an EOY Odd Unit with first use in 2009. In addition to closing costs and the final price, the seller is asking for a "reimbursement" of the maintenance fees which provided for the 2009 use, for which the seller has already paid (i.e. 2008 and 2009 maintenance fees). What do people think about that?

On one hand it seems reasonable, although I'm not realy sure about that, and on the other hand, this unit probably won't close for 4 months and I likely have already missed out on prime season reservations. Plus, I feel like I might be getting snookered to pay for 2008 maintenance fees, even though I understand that EOY units are billed anually at half the cost, so without the reimbursement, I'd be getting a nice discount on the 2009 use.

 

[Aussiedog]

I assume this is a float? If so, will the current owner make a reservation for you? If so - you should pay the 2009 MFs. Or how about banking the week?

IMHO, even if the current owner does not make a reservation for you it can be argued that you still have a most of the year available to you as owner. The key is that the access to that 2009 week is owned by you, no one else, so should you not pay the fees?

Ann

 

[Politico]

I assume this is a float? If so, will the current owner make a reservation for you? If so - you should pay the 2009 MFs. Or how about banking the week?

IMHO, even if the current owner does not make a reservation for you it can be argued that you still have a most of the year available to you as owner. The key is that the access to that 2009 week is owned by you, no one else, so should you not pay the fees?

Ann

Yes, the week is a float. I'm most concerned about whether I should really be paying the 2008 maintenance fee on an EOY.

 

[Aussiedog]

Just a guess, but since MFs are prepaid my thought is that the MFs for use year 2009 are to be paid in advance of 08 and 09. So the seller paid half of your fees in advance of 08 and you are paying the balance. I bought a similar week and that is how it worked for me.

Ann

 

[Politico]

Just a guess, but since MFs are prepaid my thought is that the MFs for use year 2009 are to be paid in advance of 08 and 09. So the seller paid half of your fees in advance of 08 and you are paying the balance. I bought a similar week and that is how it worked for me.

Ann

Nope. I am not paying the balance. They want the whole thing. 2 years worth of biennial annual fees or 1 year worth of an annual MF. The annual MF on this EOY Odd is $250, but they want $500, stating that that buyer paid $250 in 2008 and prepaid $250 for 2009.

 

[BradC]

To restate what Aussiedog posted: with an EOY, the maintenance fees that are paid to Starwood in 2008 and 2009 cover your 2009 usage.

If I understand you correctly, the seller has already paid both the 2008 and 2009 maintenance fees, so as long as you are using the unit in 2009, you should be paying those maintenance fees in both years.

But with that said, EVERYTHING is negotiable.

 

[Denise L]

This has been common with EOY resales for the buyer to pay MFs in two halves for the usage. So half from 2008 and half from 2009 = 1 full week usage in 2009.

I'll just add that in this market (or any market), everything is negotiable, but overall, what the seller is asking you is standard and not out of the ordinary.

You should ask them to make a reservation for you, and then you won't have to worry that it will take four months to close. It shouldn't take that long, should it? Only if you are buying from an inexperienced seller should you anticipate closing to take 4+ months....I think.

 

[DeniseM]

Or to state it one more way - The fee paid in 2008 was for the 2009 usage - which you should pay, if you are going to get the 2009 usage. I would not expect the seller to pay half the 2009 MF, but I guess it depends on how desperate he is to sell it!

However, I doubt if the 2009 MF has already been paid - they bills just started coming out this week and many haven't even been received yet.

You might want to negotiate to pay the 2009 MF yourself, or agree to pay it to the seller, if he will make the 2009 reservation for you NOW.

 

[Ken555]

I agree with everyone else on this issue... other than to say that when I purchased my EOY WMH the seller included maintenance with the deal. We're in a different time now, though, and as prices decline further I doubt the seller's ability to pay for the maintenance (considering it's a higher percentage of the total sale price these days).

What are you buying?

 

[Politico]

I agree with everyone else on this issue... other than to say that when I purchased my EOY WMH the seller included maintenance with the deal. We're in a different time now, though, and as prices decline further I doubt the seller's ability to pay for the maintenance (considering it's a higher percentage of the total sale price these days).

What are you buying?

SDO. I may pass on this. I don't expect prices to go up anytime soon and since I'm in no rush, I bet someone wil be willing to sell with some or all the MF taken care of.

 

[Ken555]

SDO. I may pass on this. I don't expect prices to go up anytime soon and since I'm in no rush, I bet someone wil be willing to sell with some or all the MF taken care of.

Absolutely - take your time. I bet if you wait just a few weeks (or just into January) you'll be able to get what you want.