110 Days To Close - Reasonable?

[Cowgirl_Jessie]

Pffff, That is terrible

Yep, not fantastic at all.

 

[badeacon]

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

At current rate it is taking at least a month after closing for contract to show up and another several weeks for points to load. I would add 6 weeks to closing before points are available to you.So if you close 110 days from contract effective date, then add another 40 something days before points are available to you

 

[bookwormde]

Just so it is clear Disney's ROFR rights end at the later of 30 days after they receive the sale notice or the settlement date on the contract.

For refernce while it has been many years and it was a buyers market, I did a 40 day closing date with mutually agreeable extensions

The title company though it was a stretch, but "magically" Disney had the ROFR done in about 20 days, and while with estopple and paperwork mailing we actually closed at 43 days as I remember

Disney at that point was running 30 to 45 days for ROFR responses

 

[EM Lawrence]

Just so it is clear Disney's ROFR rights end at the later of 30 days after they receive the sale notice or the settlement date on the contract.

So it is not really 30 days... it is 30 or the closing date on the contract, whichever is later. My contract has a 90 day closing listed. My agent told me they are now writing 120 day contracts.

So at the 90 day mark, if for some reason Disney has not waived ROFR, I can insist on closing.

 

[lovethesun12]

Just so it is clear Disney's ROFR rights end at the later of 30 days after they receive the sale notice or the settlement date on the contract.

For refernce while it has been many years and it was a buyers market, I did a 40 day closing date with mutually agreeable extensions

The title company though it was a stretch, but "magically" Disney had the ROFR done in about 20 days, and while with estopple and paperwork mailing we actually closed at 43 days as I remember

Disney at that point was running 30 to 45 days for ROFR responses

I was going to make an offer on a contract with December use year points (banked) and asked when the closing date would be. The agent was upfront and said it would be October (can't remember the exact date) and then another 3-4 weeks to get the points. So close to November before I got points expiring in November.

I asked if the closing date could be moved up and she said no, so I didn't make an offer.

I'm guessing it was at the discretion of the reseller? Not sure why they wouldn't move it up.

 

[sethschroeder]

Just so it is clear Disney's ROFR rights end at the later of 30 days after they receive the sale notice or the settlement date on the contract.

For refernce while it has been many years and it was a buyers market, I did a 40 day closing date with mutually agreeable extensions

The title company though it was a stretch, but "magically" Disney had the ROFR done in about 20 days, and while with estopple and paperwork mailing we actually closed at 43 days as I remember

Disney at that point was running 30 to 45 days for ROFR responses

This sounds like it was a while ago though right?

I passed ROFR in October in 15 days for reference.

 

[bookwormde]

So it is not really 30 days... it is 30 or the closing date on the contract, whichever is later. My contract has a 90 day closing listed. My agent told me they are now writing 120 day contracts.

So at the 90 day mark, if for some reason Disney has not waived ROFR, I can insist on closing.

yes you no longer need to wait on ROFR at that point

 

[bookwormde]

This sounds like it was a while ago though right?

I passed ROFR in October in 15 days for reference.

yes 2011 it was a contract (OKW at $45) that I fully expected Disney to take back so I did not want to be out of the market for to long

 

[bookwormde]

I was going to make an offer on a contract with December use year points (banked) and asked when the closing date would be. The agent was upfront and said it would be October (can't remember the exact date) and then another 3-4 weeks to get the points. So close to November before I got points expiring in November.

I asked if the closing date could be moved up and she said no, so I didn't make an offer.

I'm guessing it was at the discretion of the reseller? Not sure why they wouldn't move it up.

no way to be sure but my guess is that this may be a seller delay or just a broker that does not fully understand the rules or just wants to do what is easier for them

 

[Grumpy Mouse]

Sadly, this will only end when potential buyers refuse to enter into contracts with ridiculous length closing periods. With a 120 day close - plus the time required to actually transfer the contract and get the points, you could be approaching 6 months to buy DVC resale. That is a joke. I can build a house in that timeframe.

As usual, the resale brokers know who REALLY butters their bread - and it's not buyers or sellers. They don't want to do anything that will make their almighty God of cash flow angry - so they don't. Only when they start losing commissions will resale brokers grow a backbone and push back against Disney.

I will be telling my broker - and the seller - if the contract is not closed by the agreed upon closing date, there will be no extension. Those agreeing to 120 day closes should realize they could conceivably not have control of purchased points until 2021.

 

[Sandisw]

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...

Just to let you know the process of getting the contract in your account and points loaded is taking a lot longer than normal.

I closed on the contract I sold June 26th and it’s still in my account. The one I bought closed on July 7th and nothing yet.

I was told to plan on a month at least for it to show up from closing.

 

[sethschroeder]

Sadly, this will only end when potential buyers refuse to enter into contracts with ridiculous length closing periods. With a 120 day close - plus the time required to actually transfer the contract and get the points, you could be approaching 6 months to buy DVC resale. That is a joke. I can build a house in that timeframe.

As usual, the resale brokers know who REALLY butters their bread - and it's not buyers or sellers. They don't want to do anything that will make their almighty God of cash flow angry - so they don't. Only when they start losing commissions will resale brokers grow a backbone and push back against Disney.

I will be telling my broker - and the seller - if the contract is not closed by the agreed upon closing date, there will be no extension. Those agreeing to 120 day closes should realize they could conceivably not have control of purchased points until 2021.

Partly comes down to if you want a good deal though as well. If they know you won't extend and they know Disney likely is running behind then they may just tell the seller to not accept the offer since it will fall through.

I guess another thing is that they need estoppel completed before closing and if Disney does exercise the ROFR then the seller would be out more money potentially so you as a buyer potentially would need to put up that money to lose (don't think the seller loses that if Disney takes the contract but not 100%).

 

[sethschroeder]

Its an interesting topic of discussion and interested if people can force this through. Would a resale company even allow the contract or walk away from the seller or blackball the buyer?

 

[EM Lawrence]

My biggest question in all of this is who pays the salaries of the DVC administrative staff that handles ROFR and transferring points? If those salaries are paid by member dues, there is no reason for them to be furloughed right now. I can’t imagine those tasks can’t be completed remotely. If they are part of the DVC sales team, then it makes sense that they are furloughed, since that unit seems to be operating on a skeleton crew.

 

[Cowgirl_Jessie]

Update: Just spoke with the resale company, the information provided is that the 110 days is built in to cover ROFR turnaround. Their stance is that they cannot move forward until it has gone through ROFR, regardless of the contractual guidance mentioned earlier about Disney having 30 days or until closing. In fairness to the seller, I am considering this and will have a go/no go response in 24 hours.

Really leaning towards no go. Roughly ~180 days until the points are in my account is just not very appealing. Especially given that I was wanting to book a trip for next summer.

 

[The Jackal]

Update: Just spoke with the resale company, the information provided is that the 110 days is built in to cover ROFR turnaround. Their stance is that they cannot move forward until it has gone through ROFR, regardless of the contractual guidance mentioned earlier about Disney having 30 days or until closing. In fairness to the seller, I am considering this and will have a go/no go response in 24 hours.

Really leaning towards no go. Roughly ~180 days until the points are in my account is just not very appealing. Especially given that I was wanting to book a trip for next summer.

Yes they don’t want to upset Disney. Disney just needs to get more of their employees back working. There are numerous jobs where people are in places semi close together and continued to work throughout the pandemic. It can be done and Disney is doing it in the parks. Bring CM’s back.

 

[Grumpy by Birth]

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.

Maybe I'm misunderstanding this agent's response... but I don't see how that can be right.

Are they saying that Disney legally has 30 days, but they give them as much time as they want?

I would think that once the 30 day period has expired, Disney can no longer legally exercise ROFR? They have a deadline. If they don't meet the deadline, why would they be given more time?

 

[sethschroeder]

Maybe I'm misunderstanding this agent's response... but I don't see how that can be right.

Are they saying that Disney legally has 30 days, but they give them as much time as they want?

I would think that once the 30 day period has expired, Disney can no longer legally exercise ROFR? They have a deadline. If they don't meet the deadline, why would they be given more time?

Maybe I misunderstand but the process works like this:

1. Seller and Buyer agree to a price/fees
2. Reseller/Title Company sends off the contract to ROFR
3. Disney is allowed at minimum 30 days to respond
4. On day 31 you can continue to close on the contract (but Disney can respond and take the contract at any time until the contract is completed)

So when Estopple occurs for $150 that is money that can not be recovered and Disney could still take back the contract. Putting together the contracts, collecting information, and working with the title company could all be ended by Disney saying they are exercising ROFR before the contract is completed (not sure when completed occurs though ie payment, submission to county, or deed being recorded).

 

[sethschroeder]

I wonder if Disney is consistently taking 60-90 days to respond if resellers start to possibly push that envelope and just move forward? Yes they lose some cred with Disney but they can also blame it on the sellers/buyers?

Doubt it though... There is a chance Disney sees this as a chance to extend these windows forever even if the short term is a legit issue with staffing.

 

[Grumpy by Birth]

Maybe I misunderstand but the process works like this:

1. Seller and Buyer agree to a price/fees
2. Reseller/Title Company sends off the contract to ROFR
3. Disney is allowed at minimum 30 days to respond
4. On day 31 you can continue to close on the contract (but Disney can respond and take the contract at any time until the contract is completed)

So when Estopple occurs for $150 that is money that can not be recovered and Disney could still take back the contract. Putting together the contracts, collecting information, and working with the title company could all be ended by Disney saying they are exercising ROFR before the contract is completed (not sure when completed occurs though ie payment, submission to county, or deed being recorded).

Ok. So Disney can still exercise ROFR until closing, but have to be given at least 30 days. So, as others have said, the agent seems to be giving Disney as much time as they want in order to "stay on their good side." But they could legally go ahead and close once Disney has had 30 days in which to exercise ROFR.

It seems to me that delaying closing beyond that is not working in the interest of the buyer or seller, both of whom are their clients... not Disney.