What are the key things that I should make sure are spelled out in a DVC resale contract? I've seen a few threads about the problems that can show up 1/2 way through a resale, and I just want to be sure there's no confusion later. I know to include banked and borrowed point info, but should a contract spell out point values in case the seller used some, because I know sometimes these contracts can sit for a few months from the time they're advertised to the time the ownership transfer is complete. Does anyone have a bullet list of key points for a resale contract? I've never done this, so all advise is welcome ;-)
Are you buying or selling independently, without a broker? Brokers make contracts for these specifics & contingencies all the time, it is their job, Sent from my iPad using DISBoards App, please excuse any typos or autocorrects!
Oh no, I wouldn't consider buying without a broker. Right now I'm buying an add-on and though I have no "worries" about that contract, I do like to be thorough, plus I also plan to buy at least a small BCV contract some time this year. And if that future contract doesn't come via one of the biggest / best rated resellers, well, then I think I'd need to be even more thorough.
IMO, you should acquire a DVC POS from the broker or from DVC so you understand all of the intricacies of the DVC program. The details of the specific contract should be handled by your broker and closing agent in advance (as that is their responsibility) so the only other details are in understanding the DVC program prior to purchase. Good luck!
I'm a DVC owner, so understanding how the program works isn't an issue. As for the rest, are you saying I shouldn't worry about the exact wording of the purchase agreement, because that's the broker's job?
Basically, any point that you negotiated or was promised at the time of agreement should be verified in the contract. This includes price per point, number of banked points, expiration date of banked points, who pays closing costs, any reimbursement of maintenance fees, etc.
I just purchased 2 contracts from 2 different brokers, and yes contracts have differences. 1. The "Execution date" - This is the date that the first contract needs to be signed by both parties. Both of mine allowed 10 days (probably to match the 10 day cooling off period). But at least one broker has a much shorter execution timeframe. Both of my sellers took the full 10 days to sign and fax their documents. 2. The closing date: One of my contracts gave 95 days from the execute date to close (so 65 days after latest ROFR waiver date). The other had about 3 weeks from latest ROFR date. I didn't know any better at the time, but 65 days is a reaaaalllly long time to wait for the seller to return their documents. I would expect 2 - 3 weeks max for either party to get all documents sent in. I should have insisted on a shorter timeframe. My sellers took 6 weeks to return their documents. After about 4 weeks of no response from the sellers, I was getting concerned. But since they had 65 days to return everything, there really wasn't anything I could do. 3. The next time, I would request that both parties need to courrier any original documents/funds that need to be returned. Part of the 6 week wait included waiting for the seller's documents to be snail mailed from overseas. I'm sure there's more that others could add, but this is what I can think of off the top of my head. In all of my research and reading, I didn't find anything that resembled a contract checklist, so great idea!
