Help Aulani Subsidized owners

[HIRyeDVC]

I passed ROFR on an AUL subsidized contract yesterday and received closing documents today from the title company. After reading through it, I did not see anything on the deed or contract that specifically stated that the contract is "subsidized dues." How would I know that this contract is actually subsidized? When you bought, did it specifically say on your contract or deed? Thank you.

 

[RoseGold]

Wow, that would really concern me. I'd call the title agent. If title insurance can't protect that, or at least the current version of that, I'm out.

 

[DVChris]

My paperwork for two subsidized contracts also did not mention “subsidized” but I spoke with title and they walked me through all the numbers to prove that they were subsidized. The sellers also provided a screenshot of their dashboard that shows the dues.

 

[HIRyeDVC]

Wow, that would really concern me. I'd call the title agent. If title insurance can't protect that, or at least the current version of that, I'm out.

right? how would the buyer be protected in this scenario? I was expecting clear verbiage on the contract or deed to specify it being subsidized.

 

[HIRyeDVC]

My paperwork for two subsidized contracts also did not mention “subsidized” but I spoke with title and they walked me through all the numbers to prove that they were subsidized. The sellers also provided a screenshot of their dashboard that shows the dues.

interesting. who was your broker and title company? and how did you ask the sellers? through your broker or title? And subsequently, I'm assuming your next dues statement reflected as such? thank you!

 

[Cubbiefan1734]

I also recently purchased 2 subsidized AUL contracts, and neither says anything about it in the paperwork. I assumed that was because when the original contracts were sold by Disney, the subsidy hadn't been put in place yet. I'm trusting/hoping that verifying the current dues on each contract through the broker is good enough...but now this post has me worried!

 

[DVChris]

interesting. who was your broker and title company? and how did you ask the sellers? through your broker or title? And subsequently, I'm assuming your next dues statement reflected as such? thank you!

One is a private transaction through First Am and I worked directly with the seller. The other contract is through a broker and Hayes Title (broker recommended for AUL) and I worked with both broker and title for the info to get me comfortable.
As a general rule for any resale I buy, I always ask for a screenshot of the dashboard of points to avoid any problems down the road.

Edit to add that both are delayed closings so I have not yet received my first dues statement. Title went through past dues calculation with me for both contracts to show the lower dues.

 

[HIRyeDVC]

One is a private transaction through First Am and I worked directly with the seller. The other contract is through a broker and Hayes Title (broker recommended for AUL) and I worked with both broker and title for the info to get me comfortable.
As a general rule for any resale I buy, I always ask for a screenshot of the dashboard of points to avoid any problems down the road.

Edit to add that both are delayed closings so I have not yet received my first dues statement. Title went through past dues calculation with me for both contracts to show the lower dues.

ok, I may haveto ask the broker to have the seller send me his/her last dues statement to verify along with a screen shot.

 

[HIRyeDVC]

I also recently purchased 2 subsidized AUL contracts, and neither says anything about it in the paperwork. I assumed that was because when the original contracts were sold by Disney, the subsidy hadn't been put in place yet. I'm trusting/hoping that verifying the current dues on each contract through the broker is good enough...but now this post has me worried!

surely, I can't be the first one to have asked this question? I just want to make sure I'm getting what I'm paying for.

 

[CCV]

surely, I can't be the first one to have asked this question? I just want to make sure I'm getting what I'm paying for.

I’ve bought several subsidized dues contracts. None of the deeds specifically lay out the subsidy. Two ways of confirming: review the dues calculation & search the bureau of conveyances in Hawaii (property records) for the original purchase date. Any purchase prior to 7/6/11will be subsidized.

 

[HIRyeDVC]

I’ve bought several subsidized dues contracts. None of the deeds specifically lay out the subsidy. Two ways of confirming: review the dues calculation & search the bureau of conveyances in Hawaii (property records) for the original purchase date. Any purchase prior to 7/6/11will be subsidized.

thanks for that. I checked the BoC and it appears that the deed was recorded on April 2012 but the closing documents seem to indicate a purchase date of 6/5/2011. The preview of the deeds on BoC is pretty fuzzy and hard to read though so I might haveto order a copy for $22. I suppose it's a small price to pay but I feel I shouldn't haveto go to this length as a buyer. Perhaps I should ask the broker and title agent for these kinds of information and clarity?

 

[DVChris]

Perhaps I should ask the broker and title agent for these kinds of information and clarity?

I would have the broker and title do the work for you. Title may have already pulled the document too.

 

[Cleeevus]

Ask the title company and/or broker for a copy of the estoppel. The estoppel from Disney clearly states the dues and you can calculate if subsidized based on that amount.

 

[Cleeevus]

This is what First Am said when I asked for confirmation of subsidized contract when I purchased:


“For the file you are purchasing, the only way we are informed that they are subsidized dues is by looking at the estoppel amount owed for 2022 dues, which is currently showing $2,272.39. Disney is taking the 2021 property taxes out of the 2022 dues (only $9.79), so it would normally be $2,282.18 – which is $6.5205 per point. Subsidized dues increased from $6.2799 per point to $6.5205 for 2022.

If you divide the total amount by the number of points (350) then you get the following:
$2,282.18 / 350 pts = $6.5205

Unfortunately Disney does not spell it out, they just inform us by telling us the amount owed and then we have to calculate.”

 

[DontTalkAboutDues NoNoNo]

thanks for that. I checked the BoC and it appears that the deed was recorded on April 2012 but the closing documents seem to indicate a purchase date of 6/5/2011. The preview of the deeds on BoC is pretty fuzzy and hard to read though so I might haveto order a copy for $22. I suppose it's a small price to pay but I feel I shouldn't haveto go to this length as a buyer. Perhaps I should ask the broker and title agent for these kinds of information and clarity?

I'm not sure why Hawaii can't buy a better scanner. Those recorded docs are very hard to read. If you see a purchase date of 6/5/11, then you are good. The purchase date is what matters (not the recorded date). Additionally, if estoppel is showing the dues calculation at a lower rate then you for sure have a subsidized dues contract.

 

[HIRyeDVC]

Thank you all for your feedback. I was able to get the seller's annual dues statement as well as the estoppel to confirm this contract indeed is a subsidized one. I'm so thankful for the wealth of knowledge and wisdom on these boards. This truly is an amazing community! Mahalo nui loa!

 

[DVChris]

Congrats on your unicorn subsidized contract!

 

[HIRyeDVC]

Happy to be part of the unicorn club!

 

[Chili327]

Hate to bring up an old thread, but it seems more appropriate here then starting a new thread...

How can you tell if a contract is subsidized when shopping for contracts.? Most places don't specify, & it seems the price per point isn't that far off to be a good search criteria either.

 

[Chili327]

Also at what point does a subsidized contract pay off or break even for price per point.?
For instance... Is $135 the same as $105 after 25 years? (my brain wont even let me figure out the equation to do the math myself. lol)