This would be very interesting indeed. All those who signed the quitclaim sue to extend their contracts. Then all those who didn't sign and paid, sue to get their money back. Sounds like a tremendous headache for DVC.
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Old Key West different expiration dates....
- Thread starter xdan0920
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correcaminos
Well-Known Member
The whole thing was done poorly. This would be a nightmare if this happened.
I didn't refuse to sign, my paperwork was simply lost. I was asked about it once via a phone call at check in during a super large family vacation and honestly I didn't have time to go from BLT to I think at the time it was at SSR? to sign things again - that I had already done in the presence of a notary.
That was May of 2011 and other than the regular mailings that went out, that's the last time I was bothered. Anyone who had a lawyer involved seems a bit much to me. Disney wasn't mean or rude about it and we traveled quite a few times between the start of it and 2011. I've added on twice since and still no one bothered me.
It's not 'reported that all contracts ended in 2057', it's now true OKW ends in 2057 and unless you signed the quitclaim your contract ends in 2057 and not 2042.
We're waiting and seeing though what happens in 15-20 years and will go from there.
I guess they could start selling "direct" contracts at OKW in 2042 with all the points they will recover from people who didn't extend.
There could be some appeal in discounted contracts with only a 15 year duration for certain people. The key would be how they price it since the resort will be very old by that time.
They could also simply create a lot of cash room inventory.
There could be some appeal in discounted contracts with only a 15 year duration for certain people. The key would be how they price it since the resort will be very old by that time.
They could also simply create a lot of cash room inventory.
tagoofy
Active Member
Sorry to bring back an old thread, but I have a question that seems no one asked in this thread, specifically regarding maintenance points and how they are calculated, especially for "set asides" accounts for all of the accounts of things we pay dues for.
Let's assume for a moment that all of us that did not pay and did not sign a quick claim deed really do stop getting any rights to use the resort after 2042. That would mean that you have some owners that will still be using the resort in 2043-2057 and those that will not (of course). The rub comes in that you have to remember that maintenance fees are not just paying for costs in the current year. There are typically costs being paid into funds for upgrades/replacements/refurbishments that will happen in future years.
A simple example: Let's say that every 10 years all of the dish washers have to be replaced. That means that in 2040 part of our fees are putting away money so that that we (DVC) has the money to replace them in 2050. But not every owner is going to still be owning (see assumption above, I know it is a debatable point) in 2050, only some. So in 2040 the dues for the "2042'ers" should be less than the dues for the "2057'ers" by the amount being set aside for new dishwashers. Now, extend this example out to ALL of the stuff that money gets set aside for, with different number of years between replacement, and you've got a terrible mess that might even should be changing dues today for the 2 classes of owners. Has anyone every asked about this?? Every heard Disney say anything about this?? (I know, "yea, right.")
Let's assume for a moment that all of us that did not pay and did not sign a quick claim deed really do stop getting any rights to use the resort after 2042. That would mean that you have some owners that will still be using the resort in 2043-2057 and those that will not (of course). The rub comes in that you have to remember that maintenance fees are not just paying for costs in the current year. There are typically costs being paid into funds for upgrades/replacements/refurbishments that will happen in future years.
A simple example: Let's say that every 10 years all of the dish washers have to be replaced. That means that in 2040 part of our fees are putting away money so that that we (DVC) has the money to replace them in 2050. But not every owner is going to still be owning (see assumption above, I know it is a debatable point) in 2050, only some. So in 2040 the dues for the "2042'ers" should be less than the dues for the "2057'ers" by the amount being set aside for new dishwashers. Now, extend this example out to ALL of the stuff that money gets set aside for, with different number of years between replacement, and you've got a terrible mess that might even should be changing dues today for the 2 classes of owners. Has anyone every asked about this?? Every heard Disney say anything about this?? (I know, "yea, right.")
nickys
Premium Member
Maintenance fees pay for running costs for the current year. So the fees you have just paid (or will do by 3 weeks time) pay for the running costs for 2023.
The money paid into the capital fund will be what you are referring to. Refurbs are scheduled for every 7 years, with a refresh (soft goods) followed by a full refurb 7 years after that. Given most resorts were sold for 50 years, that’s a total of 6 refurbs, (3 refresh & 3 complete redos). And the money has 7 years to accumulate.
So for OKW the money going into the capital fund will be accruing approximately from 2028 to 2035 for the final full refurb in 2035, give or take a year or so.
For most resorts, presumably there will only be a small contribution to the capital expenses for the last 7 years or so of the contract, to deal with any emergencies. For OKW they do have a problem there.
I assume that those whose deeds expire in 2042 will pay less for the last 7 years of their contract. How they deal with the members who didn’t sign an extension or a quit-claim, no one knows. They were for a while ROFRing a lot of contracts with a 2042 expiry.
My understanding is that expiring contracts like DVC writes are fairly uncommon so it's difficult to predict. I don't think they'll create different MF groups partially to avoid what to do about people that didn't extend and didn't quit claim, and partially because I think they'll just stick costs to all owners evenly because I think it's going to be a small amount of contracts that actually end up expiring in 2042? Every one Disney buys back it's been converting to 2057. With turnover that happens with enough regularity in resale Disney has plenty of time to convert a chosen target to 2057. Yes, some will hold out and keep to 204q, but that number is smaller every year. I don't think Disney is going to bother segmenting groups when they can argue that future building needs are future building needs regardless of ability to enjoy and everyone has a responsibly to contribute equally.