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MickeysArmy6
04-10-2012, 01:15 PM
Back to the drawing boards... the seller backed out of the agreement. :confused3
I guess they still are in love with their DVC afterall. Can't blame them for that.
Oh well... back to the research! :surfweb:

xstitches
04-10-2012, 01:46 PM
So Sorry!

VrBchJ
04-10-2012, 02:20 PM
Back to the drawing boards... the seller backed out of the agreement. :confused3
I guess they still are in love with their DVC afterall. Can't blame them for that.
Oh well... back to the research! :surfweb:

My first contract was ROFR'd and the second contract the seller backed out. But then as with so many others I later found the perfect BWV contract. So don't give up hope. There's always another opportunity.

DisDad07
04-10-2012, 04:00 PM
Keep trying, the right contract will show up sooner or later.
It takes time that's for sure.

XGrumpy1
04-10-2012, 05:02 PM
Sorry that they backed out on you. The same thing happened to me last year when a foreign seller found out about the taxes on top of the sales commission, they decided not to sell.

gatorgirl02
04-10-2012, 05:06 PM
Back to the drawing boards... the seller backed out of the agreement. :confused3
I guess they still are in love with their DVC afterall. Can't blame them for that.
Oh well... back to the research! :surfweb:

Boo...what a bummer. :headache: Where are you looking to purchase, if you don't mind me asking. I have been doing way to much research lately and would offer any help, if you need it. :flower3:

tienpa
04-18-2012, 11:30 PM
Ughh! Sorry to hear! We are just starting to research and I dread that happening! Hope you find a replacement soon.

JimMIA
04-19-2012, 08:38 AM
I think the main reason sellers back out is that they are financed, owe more than they will get from the sale, and don't have the cash to pay IN to get rid of a DVC contract they can no longer afford.

I think a LOT of sellers -- especially with Fidelity -- are in dire straits and don't really know what to do. And unfortunately, for some of them, there isn't anything they can do and the contract will eventually get foreclosed.

Hunnypaw
04-19-2012, 09:09 AM
I think the main reason sellers back out is that they are financed, owe more than they will get from the sale, and don't have the cash to pay IN to get rid of a DVC contract they can no longer afford.

I think a LOT of sellers -- especially with Fidelity -- are in dire straits and don't really know what to do. And unfortunately, for some of them, there isn't anything they can do and the contract will eventually get foreclosed.

Intresting.... Sorry to hear that happened to you. :(

gatorgirl02
04-19-2012, 09:37 AM
Sorry to hear that. I hope you find another contract you love even more! :sad:

andreadoiron
04-23-2012, 12:56 PM
Sorry that they backed out on you. The same thing happened to me last year when a foreign seller found out about the taxes on top of the sales commission, they decided not to sell.

as a dvc owner, i have been comtemplating selling lately and wondered what commision rates are for the timeshare store or others that sell dvc

JimMIA
04-23-2012, 01:33 PM
as a dvc owner, i have been comtemplating selling lately and wondered what commision rates are for the timeshare store or others that sell dvc
The general range is 10-12% commission, with most charging 10%. That may seem like a high commission when compared to the commission for selling a house, but remember that the total sales price is very small with a timeshare (conpared to a house).

andreadoiron
04-23-2012, 01:38 PM
The general range is 10-12% commission, with most charging 10%. That may seem like a high commission when compared to the commission for selling a house, but remember that the total sales price is very small with a timeshare (conpared to a house).

thanks for the info!

MickeysArmy6
04-24-2012, 06:53 PM
Boo...what a bummer. :headache: Where are you looking to purchase, if you don't mind me asking. I have been doing way to much research lately and would offer any help, if you need it. :flower3:

We were looking into Bay Lake. We found, for us, it is the best bang for the buck. We stopped looking for a few weeks to get our sanity back. Now, I'm looking again (but don't tell my husband!)

TosaTrio
04-24-2012, 08:19 PM
I think a LOT of sellers -- especially with Fidelity -- are in dire straits and don't really know what to do. And unfortunately, for some of them, there isn't anything they can do and the contract will eventually get foreclosed.

Why would more sellers back out of Fedelity contracts compared to others?

JimMIA
04-24-2012, 08:57 PM
Why would more sellers back out of Fedelity contracts compared to others?
Fidelity has a business arrangement with DVC. When DVC owners want to sell and contact DVC (usually to ask if DVC will buy their contract back, which they won't) they are referred to Fidelity in exchange for a cut of the commission on the referral. Because of that, most of the "distressed" DVC resales (people who HAVE to get out of their DVC holdings) end up in Fidelity's listings.

At this point, the seller is making a difficult decision to get rid of something they like because, for whatever reason, they just can't afford to keep it. Many times, the reason they can't keep the contract is they bought direct at a very high price, financed, and now their contract is worth MUCH less than they paid (and much less than they owe). But, their focus is getting rid of the DVC contract and they're really not thinking much further than that.

A deal is reached -- say 200 points @ $50 per point = $10,000. Seller says, "Whoopee, at least we sold it!"

Once the offer, acceptance, and deposit are in place, the deal goes to ROFR. If it passes, the transaction goes to the closing company.

At that point -- for the first time, really -- the buyer is given the details of the transaction in REAL dollars and cents. It's called a "Good Faith Estimate," or something like that. It shows the selling price, all costs owed by the seller, and the seller's NET proceeds from the sale.

When the seller reads it, it looks like this (I made these numbers up):

200 points @ $50 = $10,000

less 10% commission of $1,000
less misc selling costs of $150
less LOAN PAYOFF OF $17,305 :eek:

NET: You OWE $8,455, which you must PAY AT CLOSING!!! :scared1:

Seller can't pay the 8 grand and bails out.

That's simplified and the numbers are fictitious, but you get the general idea -- the seller finds out the resale price is so much less than they paid that they CAN'T sell.

This problem can occur with any broker, of course. But it tends to occur much more frequently with Fidelity because DVC is referring mostly problematic contracts to them.

JimMIA
04-24-2012, 09:19 PM
Why would more sellers back out of Fedelity contracts compared to others?
There are sometimes other -- non-financial -- reasons why sales fail. Again, these turn up more often at Fidelity than other brokers because of the referral deal with DVC.

Some causes of this type of failure are legal. The contract is tied up in an estate, and the process might be cumbersome. The seller might be in bankruptcy, which can seriously complicate the closing. The owners of the contract (the sellers) might be in the middle of a divorce. In that scenario, sometimes things go smoothly but other times, the sale becomes a pawn in a larger battle.

Non-financial, non-legal complications also occur.

Sometimes there are listing errors and the points shown in the listing (on which the offer is made) aren't really all there. Sometimes the owner has existing reservations, which either reduce the number of points actually there -- or greatly delay the closing date. Occasionally, those errors are accidental; often not. Lots of possibilities -- some of them simply annoying, but many are (or SHOULD BE) deal-breakers.

Again -- can happen to any broker (and does occasionally), but these things seem to happen regularly with Fidelity because of the lower overall quality of their listings. (That's my personal opinion.)

ELMC
04-24-2012, 11:25 PM
Back to the drawing boards... the seller backed out of the agreement. :confused3
I guess they still are in love with their DVC afterall. Can't blame them for that.
Oh well... back to the research! :surfweb:

Sorry to hear that this happened to you. It must be tough to be so close only to lose the contract at the very end. Have no fear, though, you'll find another...maybe even a better deal! Good luck! :)

MousekeTom
04-25-2012, 05:44 AM
Fidelity has a ...

Assuming this is accurate, this is really good information to know. Thanks for taking the time.:thanks:

JimMIA
04-25-2012, 06:12 AM
Assuming this is accurate, this is really good information to know. Thanks for taking the time.:thanks:
The part about the referral agreement is pretty well-known...and not uncommon in the real estate industry. Splitting commissions is a widely accepted practice.

The rest is my personal opinion based on numerous threads over the years regarding closings that didn't go through for various reasons.

I also think it's important to remember that, while Fidelity may experience more problematic closings than other brokers, I'm sure the majority of their sales are completed without any issues.

DizBub
04-25-2012, 08:48 AM
I'm sorry to hi-jack this thread but we are going through the same problem.

We are dealing with Fidelity too. Our sellers are out of the country, last I heard they were in Peru.........on business. This time last week seller assured our broker that they would return the closing docs and since then nothing. Seller will not return calls or e-mail. Our closing date was supposed to be 3/30. I know we need to walk away from this deal but cannot face the prospect of starting all over again.

My question is that since Fidelity did fulfill their end and sold the sellers' property, what recourse does Fidelity have? Can they take legal action to collect their commission and fees? Will they bother to take legal action? Wouldn't it just be simpler for seller to actually go through with the sale and save the legal fees? I am just :confused:

JimMIA
04-25-2012, 02:08 PM
My question is that since Fidelity did fulfill their end and sold the sellers' property, what recourse does Fidelity have? Can they take legal action to collect their commission and fees? Will they bother to take legal action? Wouldn't it just be simpler for seller to actually go through with the sale and save the legal fees? I am just :confused:Yes, Fidelity has legal options -- if they choose to use them. The seller owes Fidelity their commission, at a minimum. But Fidelity would probably have to sue them to collect, which I seriously doubt they would do.

A better course of action for Fidelity would be to simply de-list the contract and have nothing further to do with that seller.

But those are Fidelity's problems, not yours. I've been there, done that, and I know these situations are very frustrating. You just have to keep the final objective in mind and not worry about the extraneous stuff.

I'd forget about the broker and do whatever you need to do.

If you are not in a hurry (and you shouldn't be), you can wait it out. OTOH, I'm guessing that you cleared ROFR a couple of months ago, and if the sellers haven't gotten their act together in that time, you have to wonder if they ever will.

If you see another contract you like as well -- in Fidelity's inventory or at another broker -- cancel and make an offer on that contract. You've done your part; you don't owe anyone anything.

If you choose to move on, cancel first. Until you do, you still have obligations under the first contract and you don't want to find yourself with two irons in the fire.

Good luck.

DizBub
04-25-2012, 02:48 PM
Thanks for the reply JimMIA,

I'm really not worried about Fidelity or the broker, just looking for a little pay-back for the sellers. They should not be able to get away with this kind of crap. True, I guess at the moment we are not in that big of a hurry, just had plans for the points. Reallocating some and taking a trip next month. I still have points I can use but it's just the principle..........it's just not right.