Jim, you are an ardent Fidelity basher.
If pointing out incompetence (this situation, and possibly yours) and objecting to unethical conduct (withholding legitimate offers on co-brokered deals to try to get the full commission -- to the detriment of
their customer, the seller) is bashing, I plead guilty.
I would argue that exactly what you described is called Estoppels. The other problem, again, is the seller. I am sure he did not call up and say, hey, I am a deadbeat and I need to sell.
Estoppel is very late in the process -- part of the closing preparation. Other brokers ask all of those questions
up front.
I don't know if you have SOLD a DVC contract, but I have and I can tell you that other brokers send you a form that asks specifically about those questions...as well as estate, divorce, bankruptcy, and litigation. Obviously a seller could lie, as I mentioned above, but the fact remains that Fidelity constantly gets surprised by this stuff and nobody else does. It's like every transaction is their first.
I do agree that Fidelity is not without fault, but Fidelity is a different animal in that distressed contracts are pushed their way by Disney. Which, of course, is going to create a whole new set of potential problems.
I don't know the terms of Fidelity's agreement with Disney. I doubt they are forced to take distressed contracts, but I guess it is possible. Honestly I don't think it matters whether they are taking the listings because they think they can make a buck or they have to.
The fact is, they do have some distressed contracts, and yes, distressed contracts often present special problems. But the question is not what they are working with. The question is how they handle their responsibilities.
If I had a business which was composed partly of selling distressed goods which presented special problems -- AND I repeatedly had serious issues dealing with those problems -- I'd ask myself how I could do better.
If I saw other brokers sending their sellers a form asking questions about legal and financial impediments to a neat, clean transaction...I just might try that myself.
If I repeatedly had customers complaining about things slipping through the cracks, lack of responsiveness, etc, etc...I might consider staying open at least one day on the weekends...or hiring more personnel...or hiring better personnel.
If I had the problems that Fidelity has had since the start (when they were GMAC), I would fix some of the problems instead of saying
"Oh well, we're shorthanded." When you CHOOSE to be shorthanded, that's a lame excuse.