110 Days To Close - Reasonable?

[Cowgirl_Jessie]

Just got our contract to sign for a DVC resale. It specifies 110 days to close. Before we make this face , is this reasonable and the current norm please? Thank you!!

 

[bookwormde]

There is no reason you can not close anytime you and the seller are ready after 30 days, 110 is way to long unless the seller has a reservation pending

I would ask the broker why so long?

 

[BillPA]

Sounds like the owner has a trip planned and will not sell until after the trip. You might keep looking, or offer $15 less per point.

 

[Cowgirl_Jessie]

Thank you both!! I will speak with the Broker on Monday to see if we can resolve.

 

[Deeleebaker]

I asked for 45, the contract said 75. Since ROFR is taking 45 and estoppel another 14, I didn’t push. If they go faster, we can close earlier.

 

[sethschroeder]

There is no reason you can not close anytime you and the seller are ready after 30 days

People are at 61+ days just for ROFR.

From the ROFR thread:

They’ve been told by Disney to tell clients that ROFR will take 60 days.

So 110 days is not crazy when you consider they are likely building in a larger buffer to cover themselves for all the issues that come up including possible closures of business where the Seller may live. It took us roughly 3 weeks back in April to get someone to notarize our sales documents.

 

[Cowgirl_Jessie]

Thanks everyone; the different perspectives everyone has offered are helpful and appreciated. I’m not really loving the 110 days; it feels a bit on the excessive side for our situation.

 

[Sandisw]

I know that many brokers are no putting at least 90 days because of how long it is taking Disney to get things to it.

For a seller, they may also be okay with that date because it prevents a buyer from canceling out if it is held up by Disney.

Yes, per the rules of ROFR, closing can be set after giving Disney at least 30 days, but from what I have read and heard, brokers aren’t interested in doing that as it may lead to more canceled deals when it doesn’t happen.

My contract took from May 5th to July 7th to close...which was 7 days longer than it was supposed to but I was Okay with it.

 

[bookwormde]

People are at 61+ days just for ROFR.

From the ROFR thread:



So 110 days is not crazy when you consider they are likely building in a larger buffer to cover themselves for all the issues that come up including possible closures of business where the Seller may live. It took us roughly 3 weeks back in April to get someone to notarize our sales documents.

My point is that Disney only has till the later of 30 days from contract date or the contract settlement date to exercise ROFR. They are taking longer because buyers, sellers and the resellers and settlement companies are letting them take that long, not because it is consistent with POS and state law.

 

[EM Lawrence]

I‘m a little confused by this talk of 30 days. Legally, does Disney only have 30 days to exercise ROFR? I feel like I’ve seen lots of confusing and contradicting information about this.

For instance, my contract has been in RORF for over 50 days. Could I call my closing agent and insist that we proceed with closing since Disney has had their 30 days and done nothing?

 

[sethschroeder]

My point is that Disney only has till the later of 30 days from contract date or the contract settlement date to exercise ROFR. They are taking longer because buyers, sellers and the resellers and settlement companies are letting them take that long, not because it is consistent with POS and state law.

Maybe I am missing something then. When does the 30 day timer start?

The process seems to be that ROFR goes to Disney before anything is really completed. You can't close and pay for a contract that hasn't already passed ROFR.

There is also work to do after ROFR is completed so its not like it could coincide with the pass on ROFR.

I‘m a little confused by this talk of 30 days. Legally, does Disney only have 30 days to exercise ROFR? I feel like I’ve seen lots of confusing and contradicting information about this.

For instance, my contract has been in RORF for over 50 days. Could I call my closing agent and insist that we proceed with closing since Disney has had their 30 days and done nothing?

Ya this is what I am wonder when can you say "well lets close since Disney took to long" and what starts that timer?

 

[bookwormde]

Maybe I am missing something then. When does the 30 day timer start?

The process seems to be that ROFR goes to Disney before anything is really completed. You can't close and pay for a contract that hasn't already passed ROFR.

There is also work to do after ROFR is completed so its not like it could coincide with the pass on ROFR.

The timer starts when Disney is properly notified of hte sale and its terms

If Disney remains silent as of the closing date the parties are free to close.

The resellers and closing agents do not want to ruffle feathers so they accommodate Disney and to avoid doing work in case Disney does ROFR in time

 

[Cowgirl_Jessie]

That is a good point about 30 days. I’m confused on this. I’ve heard that we can close after giving Disney 30 days ROFR and also that we can’t. If the former, It really doesn’t seem like consumers should be penalized because Disney had scaled back staffing. Wondering if I can get the real scoop on the 30 day ROFR.

 

[Cowgirl_Jessie]

The timer starts when Disney is properly notified of hte sale and its terms

If Disney remains silent as of the closing date the parties are free to close.

The resellers and closing agents do not want to ruffle feathers so they accommodate Disney and to avoid doing work in case Disney does ROFR in time

I would like to push to be a feather ruffler in this scenario, assuming the 110 days is set to accommodate Disney over and above contractual obligations. Will come back to update the group. I don’t hold out much hope that the resale company will want to support feather ruffling with me though. Will be interesting to see how it plays out.

 

[macman123]

In terms of ROFR I asked my agent if we could close as Disney hadn't provided a response.
The agent said no, they prefer to extend the close date and let Disney make a decision on ROFR.

 

[sethschroeder]

The agent said no, they prefer to extend the close date and let Disney make a decision on ROFR.

Which brings up the thought that if no company out there is selling until ROFR is settled than it goes back to the idea you can't.

Is there anyone out there just closing?

I doubt the agent makes less or more money it is just simply that ruffling feathers as Disney will not help them long term with their business.

 

[Cowgirl_Jessie]

In terms of ROFR I asked my agent if we could close as Disney hadn't provided a response.
The agent said no, they prefer to extend the close date and let Disney make a decision on ROFR.

Bummer. I understand their perspective and no one wants to bump up against Disney lawyers. (Fun fact: At a former job, one of the Disney business branches sent a goody box after our company stopped doing business with them because their legal team made deals so painful. LOL. Loved the NY Mickey Mouse shirt that I got from the pile!). However, it doesn’t seem right that the consumer is disadvantaged for Disney’s staffing decisions. Oh well... Thanks for coming with on a mini rant. Interested for tomorrow’s conversation.

 

[Cadbury]

Sorry, to ask but this isn't clear for me.
Does this mean after your contract is send off for ROFR they think it will be 110 days until you have your points in your account?
DVC Resale told me 50-80 days. We are on day 39 now...

 

[Cowgirl_Jessie]

110 days for closing, plus another few weeks for the points to appear (I think that is how long it takes.)

 

[Cadbury]

Pffff, That is terrible