10 day window contract cancellation window, how does it work?

[ajsamett]

Hi all, I recently posted in the ROFR thread and had a lot of people suggest cancelling the contract, so I'm considering it. I am within 10 day window. If I wanted to do that, how does it work? Do I get my deposit back? It says I can email them with my signature stating I want to cancel. Do I need to write a note and take a picture of that note and email it?

 

[dvc lover 1970]

I just read your rofr thread. I am going to give you my perspective as i have purchased two contracts with a delayed closing. One was supposed to be delayed one month...it turned into a year due to probate- but it did close, prices went up quite a bit during that time but no issues. The other contract passed rofr, then the sellers backed out. Prices also went up. I wonder if they cancelled to resell with different broker for higher price. In this case the seller was international and the broker told me becaise of that there was nothing they could do to hold them to it. My deposit was refunded and i moved on to another contract which did cost me more i would talk with your broker and voice your concerns - is your seller international? I have not been following blt or resale prices as of late. If a good price i would probably wait it out - if just okay price then i would probably reconsider. If you do want to cancel, i would probably send an email to have a paper trail and also a phone call simply stating you want to cancel and you are within your ten days. I am not a lawyer so this is simply what i would do - dont know if right or wrong.

 

[nedlanders]

Hi all, I recently posted in the ROFR thread and had a lot of people suggest cancelling the contract, so I'm considering it. I am within 10 day window. If I wanted to do that, how does it work? Do I get my deposit back? It says I can email them with my signature stating I want to cancel. Do I need to write a note and take a picture of that note and email it?

Your contract should specify the details for canceling your purchase—timing, correspondence address, etc. Typically consists of a concise letter stating that you request the contract be cancelled. Include your contract details/number and ensure it us signed by all owners. Also, send letter via certified mail, return receipt requested via USPS. They will refund your deposit and release you from contract.

 

[ajsamett]

I just read your rofr thread. I am going to give you my perspective as i have purchased two contracts with a delayed closing. One was supposed to be delayed one month...it turned into a year due to probate- but it did close, prices went up quite a bit during that time but no issues. The other contract passed rofr, then the sellers backed out. Prices also went up. I wonder if they cancelled to resell with different broker for higher price. In this case the seller was international and the broker told me becaise of that there was nothing they could do to hold them to it. My deposit was refunded and i moved on to another contract which did cost me more i would talk with your broker and voice your concerns - is your seller international? I have not been following blt or resale prices as of late. If a good price i would probably wait it out - if just okay price then i would probably reconsider. If you do want to cancel, i would probably send an email to have a paper trail and also a phone call simply stating you want to cancel and you are within your ten days. I am not a lawyer so this is simply what i would do - dont know if right or wrong.

It is not an international seller to my knowledge, and a lower end of average price. After the comments, I figured I'd low-ball other similar contracts that don't have a delayed closing to see what came back. I got a response for cheaper (like 150$ after closing costs) on an international seller. How do international sellers impact the contract? I'm thinking of cancelling and taking this new one

 

[davidhr]

Keep in mind some brokers might refuse to do business with you later if you cancel. That wouldn’t make me not cancel a contract I don’t want, but good to keep in mind.

 

[sndral]

…How do international sellers impact the contract? I'm thinking of cancelling and taking this new one

I personally wouldn’t buy a contract w/ a 7 month delayed closing, I did buy a contract from an international seller (England.)
It may take longer to close because the international seller has to find a notary that works for US documents.
You want to choose a title company that’s been around for awhile & is familiar w/ FIRPTA which is the U.S. tax that International sellers may owe. The title company is responsible for either sending 15% of the gross sale to the IRS as part of closing or holding it in escrow while the seller submits the appropriate tax forms to the IRS to show they owe less than 15%. If the title company doesn’t do its job correctly the IRS will come after the buyer for that 15%. It won’t slow down closing from the buyer’s perspective. There’s one broker that I believe has an interest in or connection to a title company & I’d opt for an independent title company if buying from that broker, but I’d do that in any case because I prefer that my title/escrow company be a neutral 3rd party. For my international seller purchase I used a title company & agent I’d used for an earlier purchase & had no issues.
DVC rarely ROFRs international seller contracts.

 

[cruisehopeful]

Is it worth losing your deposit?

 

[ajsamett]

Theoretically, I should get it back if it's within 10 days, right?

 

[cruisehopeful]

Theoretically, I should get it back if it's within 10 days, right?

What does the contract say? I don't remember anything about 10 days in my resale contract, but it could have been there. I just remember that I would lose my deposit (which was $7500.) and I wasn't going to do anything to lose that.

 

[davidhr]

The 10 day rule is a law. They have to refund any payments/deposits.

 

[ajsamett]

Fine print:
The buyer may cancel this contract without any penalty or obligation within 10 days of signing. If you decide to cancel this
contract, you must notify the broker in writing with all buyers SIGNATURES of your intent to cancel. Your notice of
cancellation is effective upon the date sent to the broker through a signed document at **email** or *address* and postmarked within the 10 days. Any attempt to obtain a waiver of your
cancellation right is void and of no effect. While you may execute all closing documents in advance of the closing, as
evidenced by delivery of the deed or other document before expiration of your 10 day cancellation period is prohibited.