Advice Needed About Resale Closing Issues

[Chiliman]

First, let me say that after renting for years, we are ecstatic to finally be DVC owners! We bought 100 points resale through TSS (55 2006 available, 100 available on 12/1/07). The letter advising that we had closed is dated June 18th (Warranty Deed is dated 5/11). On July 19th we were advised by our sales rep that there was a point shortage of 11 points, so Disney had frozen our points. We did not receive the 44 points until July 21st. Today we were advised by email that the sellers are in the process of closing on AKV points and will transfer the 11 points into our account once they close. I have expressed my concerns with our rep, but I did want to run them by DIS also (I have more faith in these boards at this point!) Sorry this is so long, but I hope someone can help:
1) I am confused as to how there was a shortage? I was under the impression the points were confirmed prior to closing on a resale.
2) What is our recourse if the transfer does not take place?
3) We will probably not be able to use the points before 12/1 and will need to bank them. If I understand correctly, if we do not receive the transfered points by the banking deadline, and we don't use them, we will lose them. I am concerned that we will miss our opportunity to bank these points. If we have 55 points, have reserved with 23 (did that the day the 44 showed up in the account!), would our deadline be August 31 (Dec UY) to bank the remaining 32? Or can we bank the 21 there now, and the 11 when we get them?
4) Are there any fees assocated with transfers?
5) Will the 11 points be AKV points, or do they become SSR points upon transfer?
6) How are they able to just transfer points into our account without any of our membership information - which we haven't even received yet? (We received our New Member Handbook, but no information specific to our membership (no ID card - nothin').

I apologize for all the questions - I just feel a little lost here and appreciate any guidance I can get!!!

THANK YOU!!!

 

[disneynutz]

First, let me say that after renting for years, we are ecstatic to finally be DVC owners! We bought 100 points resale through TSS (55 2006 available, 100 available on 12/1/07). The letter advising that we had closed is dated June 18th (Warranty Deed is dated 5/11). On July 19th we were advised by our sales rep that there was a point shortage of 11 points, so Disney had frozen our points. We did not receive the 44 points until July 21st. Today we were advised by email that the sellers are in the process of closing on AKV points and will transfer the 11 points into our account once they close. I have expressed my concerns with our rep, but I did want to run them by DIS also (I have more faith in these boards at this point!) Sorry this is so long, but I hope someone can help:
1) I am confused as to how there was a shortage? I was under the impression the points were confirmed prior to closing on a resale.
2) What is our recourse if the transfer does not take place?
3) We will probably not be able to use the points before 12/1 and will need to bank them. If I understand correctly, if we do not receive the transfered points by the banking deadline, and we don't use them, we will lose them. I am concerned that we will miss our opportunity to bank these points. If we have 55 points, have reserved with 23 (did that the day the 44 showed up in the account!), would our deadline be August 31 (Dec UY) to bank the remaining 32? Or can we bank the 21 there now, and the 11 when we get them?
4) Are there any fees assocated with transfers?
5) Will the 11 points be AKV points, or do they become SSR points upon transfer?
6) How are they able to just transfer points into our account without any of our membership information - which we haven't even received yet? (We received our New Member Handbook, but no information specific to our membership (no ID card - nothin').

I apologize for all the questions - I just feel a little lost here and appreciate any guidance I can get!!!

THANK YOU!!!

Have the seller write you a check for $110.00 and call it even. You can put the problem behind you and get busy buying additional points.

 

[JimMIA]

1) I am confused as to how there was a shortage? I was under the impression the points were confirmed prior to closing on a resale.

That's correct...actually, I believe TTS confirms them twice -- once before listing, and again before closing. But the broker and closing agent (they are separate companies) rely on an "estoppel letter" from Disney. In your case, apparently the points are different from how they were represented. I think the most likely explanation is that the seller accidentally mistated the status of points (maybe changed a ressie between listing and the closing date?), and they were 11 points off somehow. Believe me it happens.

It's awkward, but I wouldn't worry about it. That's the benefit of working with a reputable broker. This will be fine.

2) What is our recourse if the transfer does not take place?

Sorry about that...I misread your OP. Just continue to work with your broker. Hypothetically, you could sue someone, but that is not going to be necessary. This will work out.

3) Don't know the answer to this question, but I'm sure it will all come out in the wash.

4) Are there any fees assocated with transfers?

No.

5) Will the 11 points be AKV points, or do they become SSR points upon transfer?

Yes. (Sorry...couldn't resist.) The book answer is they should remain AKV points; the real world answer is: Who knows? Practical answer, it doesn't matter.

6) How are they able to just transfer points into our account without any of our membership information - which we haven't even received yet? (We received our New Member Handbook, but no information specific to our membership (no ID card - nothin').

Very astute question. Actually, they already have that info. You don't have it, but the broker and Disney do.

Bottom line: These things happen occasionally. Stuff happens. The good thing is you are dealing with a reputable broker and they will fix what probably was not their mistake in the first place. It will be fine.

Oh...and Welcome Home!

 

[Chiliman]

Thanks so much for your answers/advice. I'm sure it will work out - just wish our first purchase was a little more 'magical'!

Thanks again!